The millions of euro spent by the Arts Council on an abandoned IT project has been described by Tanaiste Simon Harris as “absolutely alarming”.
It emerged that the Arts Council had spent 6.6675 million euro on a failed IT project that had been in development since 2019.
Mr Harris accused the arts agency of ignoring the Public Spending Code and its approval processes.
The Fine Gael leader said there are “extraordinarily serious” questions for the Arts Council, adding he would welcome a Dail debate about the issue.
Arts Minister Patrick O’Donovan said all activities at the state agency are now to be subjected to an external review.
Speaking in the Dail, Mr Harris said that breaching the public spending code can’t be a “consequence free zone”.
“These issues are absolutely, absolutely alarming, quite frankly.
“People can make mistakes in terms of the delivery of projects, and that’s one thing, but it’s very different when you actually just ignore the public spending code and the various approval processes,” he added.
“There are very serious questions now for the Arts Council to answer on this.”
Mr Harris said that taxpayers’ money should not be spent on a computer system that does not work.
“We don’t expect millions of taxpayers’ money to be wasted with nothing to show for it,” he continued.
“There are extraordinarily serious questions for the Arts Council here.”
“I’ve been looking myself, just at the table of the number of companies involved in this project, at least 20.
“I mean, spreadsheet after spreadsheet after spreadsheet.
“And people who made significant amounts of money out of this, profited.
“And we don’t have a computer system.”
The Dail was told that, between 2021 and 2024, the Arts Council approved an additional budget for the project without approval from the department, as is required under the Public Spending Code.
The Arts Council also frequently changed and extended contracts with external suppliers, going over the allowed limits for cost increases in several cases.
Mr Harris said these actions will likely contravene public procurement procedures and additionally exceeding prescribed contract value limits without re-tendering, which he said breaches EU procurement rules on substantial modifications to contracts.
“There’s also issues in relation to the department’s oversight of the Arts Council, and I don’t shirk from that either, and I think that has to be in the article of the review too,” he added.
Labour leader Ivana Bacik said the major spending resulted in nothing.
She said the issue raised questions about a “cover up” by the last government.
“This unfortunate debacle must not be used to undermine support for the arts or for artists. Ireland’s contribution to the arts is a source of immense pride. Our paintings, writings, music, film, theatre, comedy are an envy of the world, and many artists are not sufficiently rewarded for their work,” she added.
“I think that many of those who are funded by the Arts Council will be worried today that their vital supports might now be undermined arising from this controversy.
“So Tanaiste, you and Minister O’Donovan must now reassure artists that their funding will be protected and that we will see full disclosure and accountability for this overspend.
“Oireachtas committees have yet to be formed, so we need to have a debate on this in the Dail next week, because, Tanaiste, it appears that the entire management of this project was shambolic.
“I would question many aspects of governance and of management of the project at the Arts Council and indeed at the department too and I think all of us have very serious questions arising from this issue.”
Aontu leader Peadar Toibin was critical of the Government’s handling of public money on infrastructure projects.
“This government is an accountability free zone when it comes to waste.
“You speak about the Arts Council IT waste as some kind of shock, as if you’re a passenger on the ship of state.
“You are at the helm of the ship of state in relation to these particular issues,” the TD said.
“I could spend the full day here giving you the litany of week after week government waste projects that have happened over the last four or five years.
“There’s a deep frustration amongst taxpayers at the moment at the level of government waste that’s happening currently.
“The Arts Council incinerated seven million euros of state funding, and we have nothing to show for it.
“At the moment, what we have is a government, which is the same government that was in place just a few weeks ago, shrugging their shoulders and saying they don’t know what happened.
“That’s an incredible answer from any government to give.
“I honestly believe that there’s a culture of waste that’s coming from the top here.”