Hardship money for family of official jailed for fraud

The Revenue Commissioners have refused to divulge how much money is being paid to the family of an employee who was jailed two…

The Revenue Commissioners have refused to divulge how much money is being paid to the family of an employee who was jailed two years ago for his part in a £3.84 million tax fraud.

Brendan Murphy, a former senior tax official who worked in the Revenue's Limerick offices, was on a £47,000 salary as manager of the State's VAT repayment scheme. The money is being paid to his family from a hardship fund despite Murphy's entitlement to a State pension for his 18 years' service.

He was suspended from his duties when he was arrested in June 1997. In 1999 he was jailed for seven years for his part in attempting to forge a VAT repayment claim through which it was estimated he would have received £2 million.

A Revenue spokesman said disciplinary proceedings were being conducted. If and when Murphy was dismissed the family would lose the hardship payments.

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"There is no such thing as summary dismissal in Civil Service or public service employment regardless of criminal conviction. There has to be another procedure that has to be gone through," he said.

The payments were made on hardship grounds and had been decided at a senior level, according to the spokesman.

Murphy, originally from Trim, Co Meath, was living in Parteen, Co Clare, at the time of his conviction. He is a father of five.

During the hearing at Ennis Circuit Court, evidence was given that Murphy had been ostracised by his wife and family as a result of the case.

The chairman of the Dail Public Accounts Committee, Mr Michael Finucane TD, said he was trying to find out how much money was being paid. He had been in contact with the Revenue Commissioners and wanted a full explanation, he said, adding that the public had a right to know.

Mr Finucane said committee members had questioned the general attitude to white-collar crime and compared it to situations in their own constituencies where people had been jailed for relatively minor offences, losing all entitlements.