The Government is “extremely concerned” at the millions of euros in losses accrued by the Arts Council in pursuit of an unsuccessful IT project.
All activities at the state agency are now to be subjected to an external review.
Arts Minister Patrick O’Donovan announced the governance review after it emerged that the Arts Council has spent 6.6675 million euros on a failed IT development project.
Former culture minister Catherine Martin (Brian Lawless/PA)
The overspend was brought to the attention of the Department of Culture last summer, when Catherine Martin held that portfolio. It was not publicly disclosed at the time.
It prompted the secretary general of the Department to initiate an examination of the Arts Council project last year which returned 36 recommendations.
The report found that the Arts Council was not prepared for the scale of the project and did not put in place adequate resources to deliver it.
The examination also found that the oversight, monitoring and reporting arrangements by the department over the lifespan of the project were inadequate.
Finance Minister Paschal Donohoe said that he is concerned with governance issues in relation to the IT scheme and the relationship between the Department and the Arts Council.
“The Government is extremely concerned about a report with regards to the IT system of the Arts Council that was presented the Cabinet today,” he said.
“Minister O’Donovan briefed the Cabinet on the really significant issues in relation to that scheme.
“The two issues that are of particular concern to me were firstly governance issues in relation to how the scheme was being developed but then actually not implemented, within the Arts Council, and then also the relationship between the Arts Council and the government department itself, the length of time it took for these issues to be alerted.
“All that being said, I do want to recognise the really good work the Arts Council does do, we have to do that.
“We have writers, we have musicians, we have filmmakers, we have dramatists who are doing so well across the world due to the support they have received from the Arts Council. That does have to be acknowledged.”
Minister O’Donovan said he had expressed “deep concern” to the chairperson and director of the Arts Council over the project.
He said there are a range of “fundamental questions” about governance and culture within the Arts Council as to whether the corporate governance framework reflects best governance practice for state bodies.
He added: “Assurance is also required that the culture of the Arts Council, at all levels, is open and transparent and that it engages with all stakeholders, both internal and external, in a manner appropriate to its statutory remit to develop the arts.”
Funding for the Arts Council has increased by 75% in recent years to 140 million euros this year.
Mr O’Donovan said it is vital that the taxpayer has confidence that these resources are being used appropriately and that waste is being avoided.
“I want to see these questions addressed as a matter of urgency and accordingly I have instructed my department to commence an external review of governance and culture at the Arts Council,” he said.
“The review will extend not only to capital projects but to all activities and expenditures under the remit of the Arts Council and will commence shortly.”