A senior executive at an Enterprise Board in the south of the country is being investigated after allegations of corruption were made against him, writes Olivia Kelleher in Cork.

The Tánaiste, Ms Harney, whose Department holds responsibility for the State's 35 boards, was made aware of the allegations against the executive last winter.

A complaint was made that the executive demanded and received a percentage of a grant awarded to a business in the south of the Republic last year.

The individual under scrutiny is on special leave with pay, pending the outcome of two separate investigations into the allegations - one investigation is being carried out by the Garda Bureau of Fraud Investigation and the other by the Enterprise Board.

Ms Harney will receive a report from the board later this year. A file is also expected to be sent to the DPP.

Enterprise boards assist in the development of business start-ups and job creation. They work in partnership with other agencies such as Enterprise Ireland and FÁS.

The boards provide financial assistance to new business owners who wish to purchase machinery. They also provide feasibility study grants and offer advice on business plans and management development.

Grants of up to €65,000 a year or 50 per cent of the cost of eligible fixed assets are made available to small businesses.

The boards will also pay 50 per cent of the cost of a feasibility study or preparation of a business plan, subject to a maximum limit of €5,080 per project.

City and county enterprise boards provide grants and other assistance to "micro-businesses" - or businesses that, generally, have less than 10 employees.

Companies supported are typically in the manufacturing and internationally traded services sectors.