Poots may call in police over events company debacle
Wednesday, 4 June 2008
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The Government may order action to recover funds lost in a massive overspend debacle at a taxpayer-financed promotions body, the Assembly was told yesterday.
Culture Minister Edwin Poots also confirmed that police could be called in for further investigations into the Northern Ireland Events Company (NIEC).
The collapsed organisation was best known for subsidising showpiece concerts at Stormont, featuring such big names as The Eagles, Rod Stewart and Pavarotti.
It was disclosed yesterday that the debts run up by the company were higher than first feared and added up to £1.6m. They were originally believed to be in the region of £1.3m.
Mr Poots, whose department funded NIEC, gave MLAs an update on an independent review of the overspend commissioned by Government.
It was compiled by auditors from accountancy company KPMG, and a draft report on their findings has now been completed.
The Minister said: "The report raises serious questions in relation to the conduct of named individuals and suggests further investigation.
"It does not discount the possibility of fraud, criminal activity or civil proceedings, and the Department will need to consider carefully whether it can seek to recover monies which may have been unlawfully obtained or payments which may have been made on the basis of misrepresentations by certain parties.
"The potential for recovery will require careful consideration, and, if appropriate, vigorous pursuit. It is therefore vital that the Department, myself, and this house, take no action that would inadvertently prejudice those investigations or that we take no action which would make any recovery more difficult."
Mr Poots said further investigations will be needed.
"It may be that, as a result of these investigations, certain matters will be referred to the PSNI and ultimately to the Public Prosecution Service," he warned.
"Furthermore matters may also be referred to the Department of Enterprise, Trade and Investment for further action under companies legislation."
The Minister told the Assembly that the £1.6m deficit occurred because of a "fundamental breakdown of controls and procedures". at a number of levels.
"The NIEC entered into future years' commitments without accounting for such commitments properly, without proper departmental authority to do so or clear budgetary provision for this commitment," he said.
The overspend at the NIEC was first revealed in this newspaper last November.
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