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THE GOVERNMENT HAS spent more than €25 million on reports from consultancy firms about the National Broadband Plan.
In a letter from the Finance Minister Paschal Donohoe to the Oireachtas Budgetary Oversight Committee, seen by the TheJournal.ie, the minister confirmed that from June 2013 to 12 June 2019, the total spent on consultancy firms amounts to €25,853,684.
The money has been paid to some of the country’s top consultancy firms such as PwC and KPMG.
The companies have been paid for their advice provided throughout the process, as well as for reports on strategy development, economic analysis and State Aid rules advice.
The figures are revealed in the same week that an Oireachtas committee voted to keep the national broadband network in public ownership.
Members of the committee also voted for the government to commission an external and independent review on whether the current proposal is value for money.
Ireland’s top consultancy firms
Fianna Fáil’s Communications spokesperson Timmy Dooley said this week that an independent expert, from outside the State, who has expertise in EU law as well as broadband network provision should carry out the review.
He did not believe that someone from one of the established consultancy firms, often used to carry out reviews into government matters, such as the national broadband plan, should be asked to do the review.
“The consultancy fees spent by government on their botched National Broadband Plan is disgraceful but unsurprising. They have spent over €25 million of taxpayers’ money for the private sector to recommend a flawed privatisation model that will see €3 billion transferred from the public purse to private shareholders.
“And for infrastructure the State won’t even own. Sinn Féin called for public ownership from the beginning,” said Sinn Féin’s Pearse Doherty.
Doherty raised concerns about the vast amount of public money being paid to companies PwC, KPMG, Deloitte and EY for consultation fees, highlighting that between 2011 and 2018, all departments, excluding Department of Social Protection, the government has spent €82.5 million on the four firms.
The Oireachtas committee members also raised questions this week about whether the talks about the network should be reopened, with both Fianna Fáil and Sinn Féin stating that Eir and the ESB should be looked at again as a possibility.
Government sources told TheJournal.ie that it is keen to sign the contract and get started on the project as soon as possible.
Compensation to the bidder
The letter from Donohoe clarifies that if the government walks away from the contract with the preferred bidder, “there is no obligation to reimburse” the bidder, “regardless of whether or not the procurement results in the award of a contract”.
The project has been an ongoing source of controversy, following a number of rejected proposals, plans for the proposed ownership of the network, and a ministerial resignation last year.
Several bidders pulled out of contention for the tender for the project, which was awarded to the Granahan McCourt consortium in May, while the escalating cost of the subsidy the government will provide for the plan has also been criticised.
As early as September last year, Finance and Public Expenditure Paschal Donohoe questioned a decision to grant ownership of the plan to the winning bidder, after it emerged that the Government would pay €2.9 billion for the project over 25 years, with Granahan McCourt investing €220 million.
Senior officials in the department have questioned the decision to progress with the plan, with documents showing that the minister was warned that other projects could be at risk if the project is given the green light.
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Hahahaha…… Treasure island….
@windbag: This is next level corruption though. They want to pay 3 Billion to co-build a network with a private partner investing less than 250 Million only to own 0% of it once complete?
Why? What exactly are we paying them for? If we have the 3 Billion, can’t we just build it ourselves? If considered “Critical National Infrastructure” it’s entirely permitted to have it in state control as long as equal access is granted to all subsequent service providers renting said infrastructure on a commercial basis.
On top of which, it’s only going to cost that much in the first place because they’ve insisted on trying to roll out an urban focused architecture over a sparse rural landscape. From a network engineering point of view it makes absolutely no sense. Functionally equivalent services can be rolled out across this sort of demographic for a *lot* less money by leveraging and upgrading existing infrastructure already within state control.
So why then, with all these question and more besides, are they trying to rush through the signing of the contract? I don’t think you need to be a conspiracy theorist to see vested interests at play here. No-one with the state’s interest at heart would rush into a decision for this much money with so many question marks hanging over it.
@John Considine: because we’re schmucks for want of a better phrase. We sit down and say nothing. Between this and the children’s hospital amongst many other issues facing us, we just accept that it’s going to happen. Fg know it, FF know it. Another ‘report’ or ‘tribunal’ will happen in the coming years investigating the mismanagement of funds and it will serve to line the pockets of the judiciary. The cycle will continue. Taxpayers and accountability are the least of their worries.
@John Considine: it’s votes to get to the point though. It looks good to have it done. Britain are doing something similar with their right wing government. Keep the voters happy and pretend that they care about the rural folk in the hope that they can stay in government. It’s all pr bollox so Simon can have his day in the sun and cut the tape of the rugby shaped hospital and define his legacy. Bruton can get his day for being such a loyal servant to FG for so long. Two weasels in a nest of shnakes.
@windbag: Olympic standard comment, short and hits the bulls eye. Well done!
@John Considine: give it to the ESB.
@John Considine: @Bruce – good comments
Maybe someone can enlighten us all the Big 4 are bean counters by trade so what do they know about broadband or aviation amongst other industries.
I’m just curious as the same companies keep.popping up.
@Dave Byrne: they spin what their told for a few bob.
@Denis Reidy: Yep
@Dave Byrne: They are audit companies, they audits services. No harm there. However, they audit based on the guidelines provided by the company that wants them to audit. IE the government says ‘check this’, say someone said, the puppet dances to make sure the public are sound. Now… My honest question, can one see the advice or reports they produced 25M…
What one would really wonder about, is who audits the audit company! Central Bank, a great trustworthy bunch.
@Dave Byrne: I can’t speak for KPMG but I know, for a fact, that PwC do not even manage their own IT infrastructure, it’s contracted out. Just another case of the rich leading the profitably blind I’m afraid.
@John Considine: Yep probably back door via Mubai.
@Dave.: You need to see the prices they charge we often have them out(1of the big 4) normally a jnr lad/girl and the prices per hour an Airline pilot would not get paid.
Never mind the partners fees.
@Dave.: If the reports were paid for with taxpayers money then you, I or anyone should be able to see the reports. If you are forbidden from doing so then that needs to be changed. Harks back to Enda Kenny promising us all transparency, accountability and political reform, we got none of those things, at least it was an acknowledgement that those things are needed.
Our local West Connect Rural Broadband people were invited in to advise, and they jut got paid petrol money and a lunch, so who got the €25 million?
The consistent incompetence of the government departments associated with these types of projects is pretty mind boggling. Eir and Siro pulled out when the budget was euro 500 million. Once it was expanded to 3 billion they should have been invited back. The existing proposal is in breech of public procurement rules so wait for the law suits to kick off if this contract is awarded to GM. You couldn’t make this stuff up.
@Dave O: ‘You couldn’t make this stuff up’, Irish Government ‘Challenge Accepted’.
Got to get Dinny his money!
The Irish tax payer or as they see it the Goose that laid the Golden Egg
Off the scale.
This is bad, and people are rightly angry. Yet there is worse going on under this minority FG led government that’s never reported in any form of MSM. Seetec and Tusla just to mention two recently.
These companies are having a laugh…
So what did we find out for 25 million euro? Surely it has to be worth, at least, 25 million euro.
@Artugal: probably cost another 25 million to release the findings
@Martin Harte: We will have to wait for that. They are on break at the moment. You can’t have to many days in the year where the public can ask questions.
@Dave.: I’d well believe it!
Is there any way to actually stop this like..I’m nearly embarrassed at this stage.
Easy money!
It goes on and on. Incompetence of the highest order.
@Leo Lalor: This is far from any sort of incompetence. It’s FG doing exactly what it wants with public money and Corporate Welfare is it’s primary concern. FG looks After it’s interests in a very competent manner.
Where incompetence comes in is FF whinging out of one corner of their mouth, Brexit out of the other, and supporting their coalition partners all the way.
Pinstripe Piligers aided and abetted by Senior Public Servants incompetence.
Absolute JOKE
Simply unbelievable and to think that their best conclusion is to duplicate existing eir fibre networks all over the country instead of extending it and spend 3 times as much as eir for comparable service
Government mantra, Spend, pay, spend and live for the moment in order to obtain votes down the line and forget the reality of billions that our executives gambled in 2008 with punishment a slap on the wrist and the bailout of shareholders that our grandchildren will have to payback is pushed away into the background as long, as we look after the executives who should get their share of the pie now. Wake up we need to.
Should of just given me a few mill if they want to be wasting money, I’ll put it to use, I’ll fu#k off to Spain and buy a nice house and live my days on a beach with herself and the kids
These are all back handers people of Ireland needs to wake up
It is a disgrace how much the government are paying on consultancy fees. In many ways am not surprised about this figure and expect that if one saw the amount the banks have paid on consultancy fees it would be significantly more as thousands of consultants work with some of the countries largest banks
@Jessy: another problem is that these consultants either have no clear understanding of telecoms Or have a vested interest in certain outcomes
Money well spent on advice for government on how to spend billions of taxpayers money to pay a company to install broadband and then give it to them to profit from it. The spin and propaganda from this government would make you so dizzy you would fall off a swing
THAT IS A LOTO LOTO TAXPAYERS MONEY GONE ON BROADBAND REPORTS. THEY SHOULD HAVE TAKEN HEALY REA’S ADVISE AND GONE FOR SLIMBAND, Cheaper by half he reckoned.
@James Keogh: Don’t mention the lotto.. FG sold that off too. And now the profits leave the state.
Dont look at me, I know naughton
And how much of this money went to the chronically underfunded universities?
At the end of the day it will end up being shite, we are great at dishing out the old brown envelopes but actually getting something done correctly is beyond us.
Bring it to towns and villages, and supply satellite broadband receivers to outliers when the starlink constellation is up and running.
Can I have my €25,000,000 now please?
Who are these consultants, out of office TDs?
Now thats what you call “Networking”(excuse the pun)ker ching ker ching
F#ck that!
Groundhog Day starts again
Money being thrown about for pals of pals because its not their money but tax payers… It IS ridiculous that it is 25 million, why can’t no one see that?
Another Irish water
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