INDEPENDENT TD Mick Wallace has been fined €7,000 for not paying his construction workers’ pension contributions on time.
The Pensions Board initiated proceedings at Dublin District Court after the developer turned politician failed to pay the contributions to the Construction Workers’ Pension Scheme (CWPS), between January 2008 and January 2010.
The Wexford TD, dressed in a purple top and green combat trousers, pleaded guilty yesterday to five counts of late payment of pension contributions for the first five months of 2008.
Another 19 counts were withdrawn on application by the Pensions Board.
Wallace was given one year to pay fines imposed yesterday, as well as the Pensions Board’s legal costs, or else he can be jailed for 15 days.
Lynn Fenelon, for the Pensions Board, told Judge James Paul McDonnell that the TD’s construction firm, MJ Wallace Ltd, had participated in the CWPS since March 2006.
On October 13th, 2009, the Pensions Board received a report from a trustee of the CWPS that contributions were outstanding.
The Pensions Board wrote to MJ Wallace in May 2010 requiring it to provide information, documentation and an explanation. Four months later another warning letter was sent to the firm prompting it to provide payroll details from 2008 and 2009.
In October 2010, forensic accounting analysis found that €49,311 was deducted from employees’ pay for remittance to the CWPS, but just €26,557 was paid to the scheme.
Ms Fenelon added that after summonses were issued, in July this year, the outstanding amount due had been paid.
Wallace told the judge: “I accept that we did not pay on time. There was a discrepancy in how much was due; there was a lot of debates and arguments.”
He said under the scheme the employer paid 60 per cent, the employee 40 per cent, and he claimed that the money withheld in this case was the employers’ contributions.
“We were willing to pay and it has been paid in full,” he added.
Joe Jeffers, for Wallace, told the judge that at the time his client had experienced “severe financial pressure”.
The judge also heard that, in October, ACC bank secured summary judgment orders in the High Court for €19 million against the TD and his company, which is in receivership.
The judge said that because of the country’s economic difficulties similar types of offences have come before the courts.
He said Wallace’s offences became more serious by virtue of the fact that they had continued over a period of time.
He fined the TD €1,000 on each of the first four counts and €3,000 on the fifth charge.
The fines must be paid within one year, otherwise Wallace will face a 15-day jail term, the judge ruled. Wallace must also pay €450 to cover the Pensions Board’s legal costs.