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HomeBus Eireann Kickbacks for contractsBus Eireann probes 'free holidays' for special needs taxi contracts

Bus Eireann probes ‘free holidays’ for special needs taxi contracts

By: Michael O’Farrell 

Investigations Editor

A TOP-LEVEL investigation has been launched in Bus Éireann after allegations of bribery and corruption involving the multimillion School Transport Scheme were sent to the Department of Education.

The inquiry centres around whether a Bus Éireann employee, attached to the scheme, accepted kickbacks such as holidays in Spain, free flights and accommodation.

In return, it is claimed, contracts for transporting special needs children to school were awarded to taxi and bus drivers under the scheme.

The contracts – which involve transporting more than 135,000 primary, secondary and special needs students to and from school each day are valued at €166m. The inquiry was sparked in mid-September when an affidavit alleging wide-ranging corruption was sent to the department.

The seven-page unsigned document – in which the name of the employee and others involved was redacted – was immediately referred to Bus Éireann for investigation.

The Irish Mail on Sunday - November 17, 2013
The Irish Mail on Sunday – November 17, 2013

Last week, in response to a parliamentary question, junior Education Minister Ciarán Cannon confirmed the probe was ongoing.

‘My department will be advised of the steps taken, if any, arising from this investigation.

It is inappropriate for me to comment further.’ Mr Cannon said the complaint had not been made previously but confirmed that an ‘unsubstantiated allegation was made in February 2010 alleging inducements in relation to the awarding of school bus contracts in the same office’.On that occasion all staff concerned were interviewed and ‘no evidence was found’.

When they received the latest allegations, it is understood that Bus Éireann investigators recovered the redacted names and have interviewed many of those identified – including the private bus operator whose allegations are detailed in the affidavit.

It is not known when the inquiry – headed by one of Bus Éireann’s four regional managers – will conclude but it is understood a report will be sent to Ruairi Quinn in the coming weeks. Because the allegations could potentially involve criminal offences the matter may also be referred to gardaí. The Irish Mail on Sunday understands that the private operator responsible for the allegations made as much as €400 a day from contracts awarded by Bus Éireann’s school transport scheme.

The scheme is now subject to a new tendering regime which has been phased in since 2011. But, prior to that, more than 100 staff throughout the scheme’s 11 nationwide offices exercised varying degrees of control over which private operators gained and lost lucrative contracts.

The affidavit alleges that one such staff member used their position to ensure contracts were awarded to favoured contractors who had supplied incentives. It is alleged that the employee also implied that operators would lose their routes if they did not continue to provide incentives.

According to the document, several private operators helped fund trips to Spain in 2008 and 2009, during which accommodation was provided in a house owned by another Bus Éireann contractor.

The operator behind the claims alleges his routes were taken away when he stopped contributing to whip arounds for the Bus Éireann employee.

A spokeswoman for Bus Éireann referred queries about the claims to Mr Cannon’s parliamentary statement, which, she said, ‘addresses all issues raised. I would advise there is a legal process ongoing’.

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Michael O'Farrell - Investigations Editor
Michael O'Farrell - Investigations Editor
Michael O'Farrell is a multi-award-winning investigative journalist and author who works for DMG Media as the Investigations Editor of the Irish Mail on Sunday newspaper.

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