The Irish Mail on Sunday

EDUCATION CHIEF USED THE K CLUB FOR STAFF MEETINGS

Gatherings cost €550 every time Board spent €60k on hotels

- By Craig Hughes

THE former head of a controvers­ial educationa­l board spent more than €60,000 on hotels in one year, including more than €20,000 at the exclusive K Club where he hosted staff meetings just 2km from his home, the Irish Mail on Sunday can reveal.

Correspond­ence between the former chief executive of the Kildare and Wicklow Education Training Board and the Department of Education, seen by the MoS, details a litany of spending on lavish hotels, as well as tendering issues and a failure to disclose family ties between the ex-chief executive and a company that won a board contract.

Seán Ashe retired from his role as chief executive of the training board last December, having been in the post, which oversees a budget of €160m, since June 2013. After

an investigat­ion by the Comptrolle­r and Auditor General, the department began its own investigat­ion into the board.

The secretary general of the department, Seán Ó Foghlú, wrote to Mr Ashe, asking why €8,880 was spent on 16 staff meetings at the exclusive K Club in Straffan, Co. Kildare, at a cost of €550 each.

The MoS can reveal that the golf club and hotel is just 2.2km from Mr Ashe’s home.

Another 24 credit card payments, ranging from €19 to €300, were made to the luxury resort. One invoice for €10,450 included a figure of €734 charged at the VAT rate of 23%. The VAT rate for food and accommodat­ion in hotels is 9%.

A K Club spokespers­on was unavailabl­e to comment on the board’s use of its facilities.

The MoS asked Mr Ashe about the use of the resort but received no response.

Another €9,814 was spent, in three payments, to the five-star Druids Glen Marriot Hotel and golf resort in Newtownmou­ntkennedy, Co. Wicklow. In total, the training board spent €61,550 on hotels across the country.

Questions have also been raised about Mr Ashe’s family connection­s to a company called Postbrook, which was allowed to rent a board premises at a reduced rate, as the property was not in a fit state for occupation. However, no rent was collected by the board.

The license agreement with Postbrook, which was unsigned, stated the company ‘would make the property fit for occupation by cleaning up the entire area internally and externally, installing a new fire alarm and security alarm and upgrading all communicat­ions in the property to include Wi-Fi’. In return it could use the property for between three and six months, the C&AG found.

However, investigat­ors found that Postbrook was there for about 18 months, from July 2015, and there was no record of rent being paid by it.

The company, which has the trading name Ashten Engineerin­g, employs Michael Ashe, Seán Ashe’s son. It was also awarded a number of tenders from the training board.

Seán Ashe did not disclose the family ties to the company, in his declaratio­n of interest for 2016, but he changed his declaratio­n since the issue was raised by investigat­ors. He said: ‘My son, Michael Ashe, is an employee of Postbrook, is a qualified industrial mechanical installer and has a shareholdi­ng in the company and is not a beneficiar­y. Jennifer Ashe is my daughterin-law. She is an employee of Postbrook and is an alternate director of the company. She has no shareholdi­ng in the company and is not a beneficiar­y. She was appointed in 2016 as an alternate director when a previous director resigned.’

The MoS put it to Seán Ashe that both of these family members were indeed beneficiar­ies, with his son being an employee and shareholde­r and his daughter-in-law being a director, with latest company accounts showing directors are in receipt of remunerati­on. He made no comment on this. The MoS can also reveal that landregist­ry records for an address in Sallins, given by Jennifer Ashe in her filings to the Companies Registrati­on Office, show that Seán Ashe is the registered owner of that property. If the ownership of the property has changed, Michael and Jennifer Ashe are required to register their own names on it – but there is no time limit on when they would have to do that.

On Friday, Postbrook had a judgment of €11,348 made against it in relation to a case taken by Internatio­nal Plastic Systems Limited, while a more substantia­l judgment of €57,357 was made against it in December, after a case was taken by Hevac Limited.

Seán Ashe didn’t respond to MoS queries in relation to the arrangemen­t with Postbrook and Ashten Engineerin­g but in correspond­ence to the department he said there was no conflict of interest in relation to the awarding of contracts and use of training board buildings.

There was no record of rent being paid by the company

‘While there was no conflict of interest, on reflection, there could be a perceived one with the original arrangemen­t and, with hindsight, I should have separated the two events, ie, the rent and the works.

‘I take full responsibi­lity for allowing this to proceed. Even though at the time SOLAS sanctioned the acquisitio­n of the building, no financial provision was made other than that for rent in our authorised budget. Hence, the attractive­ness

of the offer by Postbrook to make the building fit for purpose as they had the resource to do so. The ETB [Educationa­l and Training Boards] required the building to be operationa­l as contracted training unit and it was ready for a warehouse operations course.’

The law allows people to create a picture of their signature for official use, called a digital signature, and the investigat­ion found poor practices regarding the use of Seán Ashe’s digital signature, which he claims was not always done by him, and that simply because his name was on documents it didn’t mean he made the relevant decisions.

‘As I acknowledg­ed in my previous response my signature is on some documentat­ion relating to procuremen­t processes. None of these processes involved me in a decision-making position whereby it was utilised to open the “form of tender” and if I was present I declared such by signing the balance sheet. No decisions were made at such meetings.

‘The signing of documentat­ion either by me personally or by an authorised officer using my digital signature was a legacy practice that should have ended after I had delegated authority under our new corporate structure, and the relevant officers should have appended their signatures with sign-off by the COO [chief operating officer] head section. Nobody was conscious of the need to change, and this oversight resulted from a massive uplift in workload for key staff.’

The MoS previously reported that the activities of the Kildare and Wicklow Education Training Board were being referred to the Garda fraud squad on foot of the C&AG report. The investigat­ors also found issues with a number of building projects including a major overspend at Arklow College, with €900,000 having to be paid to Sammon Contractin­g Ireland Limited (who this week went into examinersh­ip), relating to an accelerato­r fee and other claims.

The department has sought clarificat­ion in relation to these fees.

Attempts to contact Michael and Jennifer Ashe were responded to by a third party, who confirmed they were aware of the MoS questions, but would not comment further.

 ??  ?? The K Club is a luxury five-star hotel and golf course in Straffan, Co. Kildare, which famously hosted the 2006 Ryder Cup. Built on the original estate of Straffan House, it is owned by Michael Smurfit. It is one of only four five-red-star hotels in...
The K Club is a luxury five-star hotel and golf course in Straffan, Co. Kildare, which famously hosted the 2006 Ryder Cup. Built on the original estate of Straffan House, it is owned by Michael Smurfit. It is one of only four five-red-star hotels in...
 ??  ?? €15,000 IN CREDIT CARD BILLS: Seán Ashe who recently retired as chief executive
€15,000 IN CREDIT CARD BILLS: Seán Ashe who recently retired as chief executive

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