11/11/2004

Inquiry launched into overspends by education boards

The Department of Education has announced that an inquiry is to be held into the recent overspend by two education boards in Northern Ireland.

Following the discovery that the Belfast Education & Library Board (BELB) and South Eastern Education & Library Board (SEELB) had overspent by £5.6 million and £5.4 million respectively, the Department said it plans to initiate a statutory inquiry into financial management and control in the two Boards.

Speaking from the Department’s Headquarters in Rathgael House, Education Minister Barry Gardiner said: “Over the last few months, we have been working with both Boards to examine the scale and nature of the recent overspends; the reasons for their late discovery; and the actions that need to be taken to prevent recurrence and eliminate the deficits.

“We have now established the scale of last year’s overspend. The SEELB overspent by £5.66 million and the BELB overspent by £5.4 million. It is imperative that I take swift, decisive action in what is an extremely serious situation, particularly when both Boards, if left unchecked, would, by their own figures, be registering a further overspend, at the end of this current financial year, totalling approximately £23 million.”

Confirming the scope and purpose of the inquiry, which will be led by Dr Bill Jack, the former Comptroller and Auditor General, the Minister confirmed that it would have a statutory basis: “The Inquiry will focus on the effectiveness of the financial control systems in place in each Board as well as on how all concerned, the Board, its Chief Executive and its finance team, have discharged their responsibilities.”

Last month, the chief executive of the BELB was suspended following an overspend of nearly £5 million by his region's department.

Following a four-hour meeting of the Board it was agreed that David Cargo should be suspended, however, the suspension was described as a "precautionary" measure which was not a "presumption of any guilt".

(MB)

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