Former FF MEPs sued over aides' allowances

THE PRESIDENT of the High Court has received information from the European Parliament concerning claims that two former MEPs, …

THE PRESIDENT of the High Court has received information from the European Parliament concerning claims that two former MEPs, while allegedly employing two women as their secretaries/assistants in the European Parliament, submitted assistant allowance claims for two other people to the parliament.

Kathleen Egan and Margaret Hackett have sued former Fianna Fáil MEPs James Fitzsimons and Liam Hyland – who retired in 2004 – alleging the failure to claim allowances for them has left them without pensions. They are claiming damages on several grounds, including alleged breach of contract, fraud and misfeasance in public office.

Mr Justice Nicholas Kearns had asked for certain information from the European Parliament arising from the claims by Ms Egan (61), Caucestown, Athboy, Co Meath, and Ms Hackett (66), Borris-in-Ossory, Co Laois, who claim they worked as Dáil secretaries and MEP assistants to Mr Fitzsimons and Mr Hyland respectively.

The women claim they discovered after the MEPs retired in 2004 that they would not get pensions because no allowance claims were submitted for them. The MEPs were entitled to claim the European Parliamentary Assistance Allowance (PAA) for pension contributions for MEP assistants but had not claimed it for the plaintiffs and claimed it for two other people, it is alleged.

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The PAA has always been “generous”, rising from IR£8,000 per month in 1995 to about €12,756 per month in 2004, Ms Egan says.

She alleges she received no remuneration from Mr Fitzsimons while working between 1984 and 1987 as his assistant; was paid directly by him up to 2001 in alleged breach of the relevant rules; and, from January 2001 to June 2004, was paid by the European Parliament via accountants.

Ms Hackett claims she worked as MEP assistant for Mr Hyland between 1994 and 2004, apart from a “temporary cessation” between June 1997 and June 1998 due to an employment dispute.

She claims she was not remunerated at all between July 1994 and June 1997 for the MEP assistant work; was paid directly by Mr Hyland for that work between July 1998 and January 2001 in alleged breach of the relevant rules; and, from January 2001, was paid by the European Parliament via accountants.

Both women have separately sued the former MEPs for damages alleging breach of contract and/or negligence, misfeasance in public office, breach of trust and fraud.

Ms Egan has alleged negligence and breach of duty against accountancy firm Sheehan Quinn Company, Sandyford, Dublin, while Ms Hackett has made similar claims against accountancy firm Lupton Associates, Roscrea, Co Tipperary. Those claims arise from the firms’ alleged involvement in administration of MEP secretarial salaries and expenses.

In preliminary applications to the High Court, the defendants are seeking an order striking out the actions for alleged abuse of process. It is claimed both women are bound by a July 2004 settlement of industrial relations proceedings which, it is alleged, covers the claims being advanced now. The women deny that claim.

Solicitors for the women had sought information from the European Parliament related to their claims Mr Fitzsimons and Mr Hyland had applied for secretarial allowances for two other people. It was alleged Mr Fitzsimons had applied between July 1984 and December 2000, and Mr Hyland between July 1994 and December 2000, setting out the names of two other people who they named as their MEP assistants.

The parliament informed the solicitors that the names of two other people allegedly engaged as assistants by the MEPs could not be disclosed on privacy grounds. However, it was indicated documents might be provided by the parliament if they were requested by an Irish court.

When the preliminary application came before Mr Justice Kearns, he said he did not want to have to address the issues raised in an information vacuum and wrote last February to the president of the European Parliament asking for certain documents relevant to the issues being raised. In those circumstances, the preliminary motion hearing was adjourned.

Mr Justice Kearns asked the president of the European Parliament for documents related to applications by both MEPs for payment of secretarial allowances. He sought details revealing the full amount paid – and the purpose of those payments – to Mr Hyland and Mr Fitzsimons, or their paying agents, under the PAA.

When the matter was mentioned yesterday, Mr Justice Kearns told counsel for the sides he had received a response from the European Parliament which referred to data protection matters and confidentiality issues. This raised questions as to how the motion should proceed, whether the information should be provided to counsel or should he just read the material himself, he said.

After discussing the matter with counsel, the judge said he would not do anything with the material received prior to resuming the motion hearing in July.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times