One miliion in debt and there’s more
February 18, 2008
THE Northern Ireland Events Company was operating illegally while quaking under massive debts of £1.2 million, the Culture Minister has claimed.
Edwin Poots also revealed he is “absolutely sure” the Government-funded body – which brought Elton John, Pavarotti and the Eagles, as well as a range of major sports events to Ulster in recent years – did not spend taxpayers’ cash “legitimately”.
Executive ministers decided to wind up the troubled company last November after the deficit, which amounted to half its annual budget, was exposed. The Government had to bail out the organisation by paying its creditors £655,000 of public money.
It’s now costing the government £200,000 to carry out an audit probe to try to learn how the company lost its way so dramatically.
Mr Poots uncovered the financial mismanagement when he acted on a tip-off from a fellow Assembly member, he told a UTV Insight probe into the misspent cash to be shown tonight.
And when asked if the debts meant the company was running while insolvent, and therefore illegally, he added: “Yes, I think it was operating in an illegal position and had it not been for the Executive supporting me in seeking to pay the debts that were owed that was very clearly the case.”
The show claims the company’s involvement in Motocross biking events may have sowed the seeds of its destruction.
Funding of £50,000 was approved by the body’s board of directors for the Motocross Grand Prix in 2005, but it ended up with an overspend of £369,000 for the event, the documentary claims.
Other overspends listed by the show include £100,000 on the Circuit of Ireland International Rally, £75,000 on a Coca-Cola film and TV festival for young people and £173,000 on running costs and professional fees between 2005 and 2007.
No-one at the events company agreed to be interviewed for the documentary.
But Janice McAleese, chief executive of the company until April last year, told the Insight team: “This happened on my watch, obviously I have to take responsibility but I’m not alone in it, there’s plenty of other people that have to take responsibility too.”
Mr Poots will deliver his findings from the accounts investigation to the Assembly after he receives the report within the next month.
He said: “[The investigation will identify] money that was actually spent on events and money which was spent legitimately and it will identify money which was spent otherwise, because I’m absolutely sure that money was not spent legitimately, so it’s up to them to identify all of that.”
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