Gardai ready to investigate RTÉ fraud claims after latest day of shame

In calamitous turn at PAC, RTÉ board faces ‘fraud’ claims and CFO stalls on salary question

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The RTÉ crisis hit another low as the national broadcaster faced claims of fraud, operating a slush fund and splurging licence fee money.

Gardaí are ready to investigate the claims, with officers monitoring the payments scandal in recent days, the Irish Independent understands.

As the reputation of RTÉ was shredded at the Dáil’s Public Accounts Committee (PAC) meeting, it emerged that Champions League final tickets, Rugby World Cup junkets and Ireland rugby seats were all paid for from public funds.

For the first time, RTÉ’s acting director general Adrian Lynch said it was “possible” Ryan Tubridy’s departure from The Late Late Show was linked to the investigation into secret €75,000 payments.

In a calamitous appearance before PAC, RTÉ’s chief financial officer (CFO) Richard Collins said legal advice sought by the broadcaster indicated “there is not fraud involved here” in relation to the payments to the former Late Late Show presenter.

However, he said: “My own opinion is maybe the taxpayer was defrauded.”

Gardaí are ready to investigate the claims, and the Irish Independent understands officers have been monitoring the payment scandal since it emerged eight days ago.

RTÉ CFO reluctant to answer when asked about his salary

While no formal probe has been launched, it is expected the deal will become the subject of an investigation in the weeks ahead.

“A key element of any investigation would be allegations of false accounting within the organisation,” a source said.

Gardaí are believed to be awaiting the result of a review of activities at RTÉ by Grant Thornton, which is due for completion late next month.

Yesterday before the PAC, Sinn Féin TD John Brady asked Mr Collins if he wanted to make a statement to the gardaí after saying it was his opinion that taxpayers may have been “defrauded”.

Mr Collins said he would seek legal advice.

On a day of shame for the national broadcaster, it also emerged RTÉ used its controversial barter account on outlays such as travel and hotels to take clients to the Rugby World Cup (€111,000), 10-year IRFU tickets (€138,000) and travel to the 2019 Champions League final (€26,000).

The expenditure was described by RTÉ chair Siún Ní Raghallaigh as “outrageous”.

“Expenditure like that should go through the procurement system. I do believe that’s now been put in place,” she said.

Fine Gael TD Colm Burke described the barter account as a “slush fund”.

Former chair of the RTÉ Board Moya Doherty told TDs that as chair for eight years she was “not aware of a slush fund of clandestine arrangements or a tripartite agreement”.

She said it was “staggering and absolutely shocking” that the barter fund was not reported to the RTÉ board.

“It raises the bigger issue of the tension between commercial and public service,” she said.

In defence of the barter account, head of commercial Geraldine O’Leary said: “Barter accounts exist in most media companies and are used frequently for clients’ entertainment.”

CFO Mr Collins said around €1.25m has passed through the barter account in the last decade, and TDs asked for 20 years of transactions in the account to be made available.

The first job of incoming director general Kevin Bakhurst will be a “reconstitution” of the RTÉ executive board, interim boss Mr Lynch said.

For the first time, Mr Lynch said it was “possible” that the knowledge of the investigation into the secret payments influenced Tubridy’s deci- sion to step down from The Late Late Show.

Tubridy said last week: “I also wish to respond to suggestions that this issue had some bearing on my decision to step down from hosting The Late Late Show. It did not.”

It is possible Tubridy is currently operating under a verbal contract, TDs were told.

Mr Lynch said “a subsequent offer” had gone out to Tubridy’s agent, NK Management, after his TV and radio contract expired. “I would say the contract is in dispute,” he said.

RTÉ director of legal affairs Paula Mullooly said: “There is no written contract in place at the moment.”

Labour TD Alan Kelly asked how Tubridy can be employed or paid.

Ms Mullooly replied: “There is no new contract in place, so there may be an oral agreement in place.”

It is not clear if that is the case.

Finance chief Mr Collins also said he was told the €75,000 payments were consultancy invoices relating to services provided by NK Management during Covid.

On March 7, Deloitte approached Mr Collins, he said, and he asked director general Dee Forbes for clarity.

Mr Collins said Ms Forbes told him they were consultancy invoices relating to services provided during Covid by NK Management, whose chief executive is Noel Kelly.

“The services were in relation to how RTÉ structured its operations [during the pandemic],” he said.

“[Noel Kelly] was giving advice to how we dealt with sponsors. I got a high-level response from the DG. Deloitte weren’t happy with the response.”

He insisted he “never gave the nod” for the payments.

“[Ms Forbes] gave what appeared to be a plausible explanation,” he said.

Social Democrat TD Catherine Murphy asked him if he felt Ms Forbes was “not being truthful” in her response. Mr Collins said: “Obviously, now, yes, she wasn’t truthful.”

In extraordinary scenes, the finance chief came under fire from TDs before he admitted he is paid a base salary of €200,000 plus car allowance €25,000.

This came after pressure from enraged TDs and committee chair Brian Stanley after TD John Brady asked him his salary. Mr Collins initially declined to say how much he is being paid, saying it was a “private matter”.

After an intervention from Mr Stanley, he said: “I don’t know what my exact salary is off the top of my head.” This was met with fury from the committee.

“Chief financial officer of RTÉ can’t tell us what his pay is. I’m supposed to buy that?” said TD James O’Connor.

Mr Collins finally admitted: “I believe my salary is around €200,000 plus a car allowance of €25,000, but it’s in and around that.”

Ms Ní Raghallaigh branded the manner in which payments to Tubridy were presented in RTÉ accounts as an “act designed to deceive”.

“I am appalled as to how payments were recorded and presented in the RTÉ accounts,” she told the Dáil’s spending watchdog. “What was the motivation here? It appears to me that this was an act designed to deceive.”

Ms Ní Raghallaigh also said she “intends” to publish the top 100 earners at RTÉ, including the executive board, “as soon as practically possible”.

Incoming presenter Patrick Kielty will be paid €250,000 per season for hosting The Late Late Show. This is to cover 30 shows a year, with any additional shows to be paid on a pro-rata basis, Kielty said in a statement.

He revealed his salary in a statement and said he had signed a three-season deal. He will also get a one-off payment of €20,000 to cover the pre-production period and rehearsals between now and September.