Chair of the Public Accounts Committee, John Brady TD has described as “seriously alarming” revelations that a private company operated by 18 members of staff at St. James’s Hospital received €4.7 million to provide diagnostic services, without a contract and without a proper procurement process.
The information came to light following questioning of the St. James’s Hospital board and executive at today’s PAC meeting.
Teachta Brady said:
“The Public Accounts Committee initially made the decision to call St. James’s Hospital before the committee following findings from the Comptroller and Auditor General (C&AG) that showed the hospital paid €1.44 million in 2024 to a company owned by 18 members of staff to provide diagnostic services.
“Shockingly, the vast bulk of this money had been paid without the services provided to the hospital being subject to a public procurement process, and the staff concerned had not set out their interest in the company in their annual declarations.
“To learn from questioning today that this issue in fact goes as far back as 2017, and the total amount of money paid to the company stands at €4.7 million is seriously alarming.
“It’s unfortunate that this information had to be drawn from the witnesses under questioning, and that it was not provided to the committee in advance of today’s meeting.
“As chair of PAC, I am requesting additional details with regard to the arrangements with the private company – how it initially came about, if compliance concerns were flagged, the level of rent being paid by the company to use space in the hospital, and a myriad of other points that require clarification.
“This Frankenstein arrangement paints a vivid picture of the dysfunction that exists within the health system created by successive governments and ministers for health.
“While the hospital acknowledged their mistakes made in terms of compliance, they still argued that such arrangements with private companies are necessary in order to meet patient needs and to fill gaps in capacity.
“This lays bare the abject failure of this government and minister to effectively invest in building public capacity – preferring moves toward privatisation, often by stealth.
“PAC will continue to pursue these matters until satisfactory answers are provided.”
ENDS