Bought €1m software that didn't work
Friday October 24 2008
A HOSPITAL employee who quit following a €1m spending fiasco still got a pay-off.
The senior manager who signed a contract for computer equipment at Beaumont Hospital, some of which could not be used, was given the payment when he resigned.
The individual signed the deal with an IT company to lease hardware and software without informing senior management.
Contract
The hospital later found it could not use some of the software but was unable to terminate the €1.3m contract.
As a result of the fiasco, the hospital put new procedures in place, including a spending limit of €50,000 for senior managers. It also implemented a requirement for all purchases over €5,000 to be approved by the financial controller.
The Public Accounts Committee was informed by Beaumont's chief executive, Liam Duffy, that the employee was given a payment when he resigned this year.
Mr Duffy said the sum was negotiated with an arbitrator but could not be revealed due to a confidentiality agreement.
He described the actions of the employee, who did not receive a pension, as "inappropriate" and "incompetent".
However, Labour's Deputy Roisin Shortall said it is not very satisfactory that the amount of the pay-off cannot be revealed, given that public money was involved.
Beaumont hospital in North Dublin only found out about the existence of the €1.3m contract when the company involved requested payment in December, 2006. Beaumont was unable to back out of the contract.
However, the hospital was refunded €295,000 from the company for software it was unable to use. It said it suffered "no loss" as it was able to use the remaining software and hardware.
Car park
The committee also heard that the Beaumont Hospital is liable for a €762,000 tax bill in connection with its controversial multi-story car park project.
The car park was built as part of a public-private partnership.
Beaumont's financial controller Gus Mulligan said a temporary company set up to manage income from the car park was not wound up in time, which had led to a potential tax bill of €762,000.
- Cormac Murphy
