The Dail Committee of Public Accounts has refused to accept the explanations of former Department of Energy officials on why Glen Ding Wood was sold privately to Cement Roadstone Holdings (CRH) in 1992.
In a hard-hitting report, the committee says that while appreciating the reasons advanced against the public sale, "it did not accept the Department's explanation as credible," particularly in the light of an assurance to the Dail by a previous minister that if the State land was sold, it would be by public tender.
Members failed to understand, the report continues, why other parties which had expressed an interest in the property had not been invited to make an offer. And it adds that, given the size of the property and its gravel reserves, it would have been "prudent" of the Department to get a second opinion or the advice of the Valuation Office on its value.
Most pointedly, the committee notes that when approving the decision to sell the property to CRH for £1.25 million, Mr Robert Molloy was presented by officials with a summary of the case, which "made no reference to the commitment given in the parliamentary question by his predecessor".
The report concludes that the manner of the sale was inappropriate and that adequate safeguards should be established to avoid a recurrence in any State Department or agency.
The committee chairman, Mr Jim Mitchell, said last night that the sale of Glen Ding appeared to have been a clear breach of financial practice by the old Department. He paid tribute to the role of the Fianna Fail TD Mr Dick Roche for drawing attention to the issue, and said he would now welcome a Dail debate.
A spokesman for Blessington Heritage Trust, which opposed the sale of the wood, said the matter should now be dealt with by the tribunal investigating payments to politicians.
Mr Frank Corcoran claimed the tribunal had been effectively prevented by a Dail vote from considering the matter, and added: "The Committee of Public Accounts has found the Department's position not to be credible, but it is clearly not in a position to find out the full facts. The Dail must now untie the hands of the Moriarty tribunal in this matter."
CRH greeted the report as a vindication, saying the committee had attached no blame to the company.
A spokesman added: "In the face of persistent innuendo and inaccurate comment, Cement Roadstone Holdings has consistently stated that all of its negotiations were carried out in good faith and concluded in an entirely ethical and professional manner."
