C&AG report is critical of central Bank practices

The state paid out almost 18 million euro in severance to staff between 2011 and 2013.

The figures are revealed in an investigation by the Comptroller and Auditor General.

The C&AG has been looking at severance payments in the state, how they are calculated and how they are approved.  

The report finds €11 million of the €18M paid to related to non cash items like pension top ups.

His report finds broad compliance with the rules for  severance. However,  it is critical of some payments in the Central Bank.

In one instance €73,000 severance was paid to to an individual who had not started work at the Bank. It's one of  4 payments made totaling €342,000.  Two payments were made to staff with less than two years service and the final payment was to a long term contractor who was never an employee.

The bank incurred a legal bill of 157,00 euro for work on 6 severance cases.

In another case reviewed, a former Minister rehired an individual in a different role 5 days after their employment as a ministerial appointee had ended.

That person was paid €8,000 in redundancy for the ministerial appointment role.

The C&AG makes a number of recommendations about reminding departments of the rules and of their responsibilities and better oversight.

In a statement The Central Bank says it recognises its responsibility to balance the use of public monies and has made the following changes to operating procedures.

  •  The Bank has shortened the probationary period from twelve to six months to ensure that performance and development issues are dealt with in a timely and focused way and to ensure that sufficient time is allowed to address any concerns.
  •  The Bank has made amendments to its pre-employment processes.

It adds that "Bank practices have been amended to further distinguish between permanent employees and contract workers"