A senior official at the trade union Siptu who controlled a controversial bank account at the heart of the Skill training fund controversy is to be demoted.
Matt Merrigan, who is currently a divisional officer with the union, is to be demoted to the rank of sectoral organiser. It is understood his pay levels and employment conditions will be reduced accordingly.
The decision to demote Mr Merrigan was taken by Siptu's general secretary Joe O'Flynn following receipt of a report drawn up by barrister Richard Kean into Mr Merrigan's employment relationship with the union.
Over the last year various investigations into the Skill controversy found that more than €4.5 million in State funding, had been paid into an account known as the Siptu national health and local authority levy fund.
The account was controlled by Mr Merrigan and a long-standing Siptu member Jack Kelly.
Funding drawn from the account was used to pay for more than 30 foreign trips undertaken by senior civil and public servants as well as by officials of trade unions and others.
Siptu has consistently maintained it knew nothing about either the bank account or the money paid into it from various State sources including the Department of Health/HSE and a local authority partnership body.
Mr Merrigan has seven days to lodge an appeal to be heard by the union's president Jack O'Connor or its national executive or both.
It is understood the report by Mr Kean said any penalty to be imposed by the union would have to be proportionate to the evidence.
