Whistleblower claims spark EI investigation

Enterprise Ireland told the Sunday Independent that it takes all allegations "very seriously".

It is understood that the whistleblower has made allegations concerning sexual harassment by a senior former staff member and corruption in relation to the distribution of certain grants.

Irregularities around the "preferential funding" for some grant-aided organisations over others during the late 1990s are central to these claims.

Details of these allegations were presented to the Department of Jobs, Enterprise and Innovation in May of this year, following a meeting with the whistleblower and Enterprise Ireland officials in February.

Earlier this month, Eugene Forde, the Department's principal for Indigenous Enterprise Development wrote to Enterprise Ireland human resources chief Niall O'Donnellan: "In the circumstances, the Department has decided that it is appropriate to appoint an independent third party to investigate the allegations."

At this stage, a formal complaint has not been made to the gardai or employment rights bodies.

The Department of Jobs has sought advice on these allegations from its personnel and internal audit units. Enterprise Ireland is now preparing terms of reference for the investigation.

Enterprise Ireland is the state body - headed by Julie Sinnamon - tasked with supporting Irish businesses seeking to expand or export. It provides hundreds of millions of euro in grants and aid to companies and to Higher Education Institutes to help researchers develop and commercialise new technologies.

Last year alone, it allocated €321m in taxpayers' funds, primarily for enterprise development.

The Department has also sought further information from Enterprise Ireland, including whether the allegations have been considered by its audit committee or the Comptroller & Auditor General's office.

"Enterprise Ireland takes all allegations very seriously. This matter relates to allegations arising from a period in the late 1990s. Allegations made at that time were investigated by Forbairt and no evidence was found to support the allegations.

"Over the past 24 months allegations were once again made relating to the same period. Senior Enterprise Ireland officials met with the individual a number of times to investigate the allegations.

"Despite several requests, no evidence was presented to substantiate the allegations.

"A review of files and all available information concluded that there was no basis for these allegations.

"Notwithstanding this and since the allegations continue to be made, to deal with the matter conclusively, DJEI, in discussions with Enterprise Ireland has decided to appoint an independent third-party investigator to look at all issues in relation to this matter," according to a statement to the Sunday Independent from Enterprise Ireland.

"Any allegations of a criminal nature are a matter for the Gardai. The individual in question was advised at the earliest possible stage by both the Department and EI that any criminal allegations should be discussed with the gardai."

The Enterprise Ireland case is the second set of allegations made by a whistleblower to be examined by Richard Bruton's Department of Jobs, Enterprise and Innovation.

Earlier this month, another whistleblower made claims relating to the investigation of the Ansbacher offshore accounts and the finances of a number of senior politicians.