The board of RTÉ has asked that “swift action be taken” amid dwindling trust and confidence in how the broadcaster’s executive has handled the fallout from €345,000 in hidden payments to star presenter Ryan Tubridy.
Board chairwoman Siún Ní Raghallaigh flagged a “high probability” of further revelations of financial scandal to come at RTÉ at a third Oireachtas committee session in eight days, which saw unprecedented criticism of the executive by the chair and her predecessor.
Ms Ní Raghaillaigh wrote to incoming director general Kevin Bakhurst as well as acting deputy DG Adrian Lynch demanding that “swift action be taken” after trust and confidence was eroded by the “deeply unsatisfactory nature in which information is being provided by the executive”.
The escalating divisions come amid diminishing board confidence over the current composition of the executive board, compounded by events this week in which yet more unexpected information emerged about the broadcaster’s use of barter accounts and the extent of its spending on corporate hospitality.
Only one week ago, Ms Ní Raghallaigh told the Oireachtas media committee she did not have confidence in the executive board culture but insisted, “I have confidence in the people there.”
However, she adjusted this stance on Wednesday, saying a “blanket yes or no is deeply damaging to each of those individuals [in the executive team] and the staff members that report to them”.
“If there is a confidence issue, then there is a due process for that which will be employed as necessary. I am taking legal advice on issues that are emerging,” she said, asking that the committee respect that.
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Amid an expectation at senior Government level of changes in management, talks will take place on Thursday between Minister for Media and Arts Catherine Martin, Ms Ní Raghallaigh, Mr Bakhurst and Mr Lynch.
There were indications on Wednesday night that they could meet mid-morning. Ms Martin has said she “absolutely understand[s] that erosion of confidence and it is imperative that full clarity around these, and all issues, are forthcoming without delay”. She said a forensic accountant would be in place next week to examine matters.
There is also now growing apprehension at the top level of Government about the impact on RTÉ's finances of the scandal, with senior figures fearing a financial crunch as both commercial and licence fee income declines.
Political sources say that any increase in public funding is an impossibility, so a cash crunch at the station would inevitably mean a round of cost-cutting.
Taoiseach Leo Varadkar told his parliamentary party meeting on Wednesday that it is the Government’s mission “to fix RTÉ, to reform it and make it strong again”.
On Wednesday, RTÉ defended spending within its controversial barter account after it emerged that more than €1.5 million was spent on concerts, restaurants, flights and even flip-flops.
Copies of the Astus barter account, one of three companies that offer barter services to RTÉ, show transactions for exclusive clubs, top-range hotels, golf outings, music events and tens of thousands of euro on flights for sporting events. Ten-year IRFU tickets were listed as being worth €138,000.
There are details around a €5,000 barter on Havaianas flip-flops for a summer party “for agencies and clients”. More than €2,000 was used for balloons for the summer party.
In sport, some €70,000 was recorded for flights for the Rugby World Cup in Japan with the head of sales and clients. The accounts also show €47,000 for hotels for the same trip for two senior staff and four clients. There is a €5,110 transaction for the Waldorf Astoria Edinburgh for clients and senior staff at the Ireland v Scotland Six Nations match.
Ms Ní Raghallaigh told the Oireachtas media committee that the board could not fulfil its role “when we cannot rely on the information provided. This is profoundly unsatisfactory as the work of the RTÉ board obviously depends on the communication of timely and accurate information from the executive.” She termed the controversy “undoubtedly the darkest episode in RTÉ's history”.
Moya Doherty, her predecessor, said that a “deliberate decision” was taken not to inform the board of issues.
Ms Doherty criticised what she described as a shift in the balance of power in RTÉ to the commercial division, saying that it gave power to people bringing in revenue and “must change”.
“The system is broken, the governance is broken, and in some ways that makes for broken people making broken decisions,” the former RTÉ chairwoman said.
The Public Accounts Committee is expected to meet on Thursday to discuss issuing invitations to Mr Tubridy and his agent, Noel Kelly, who indicated their wish to “fully co-operate and assist” with its investigation. A letter sent on behalf of both men said they believe “they have important information that will assist the committee”. It was also sent to the Oireachtas media committee.
