Government to ramp up financial scrutiny of RTÉ, with C&AG to act as auditor

Minister Catherine Martin at a press briefing today.

FOLLOWING AN EXTENSIVE investigation of RTÉ’s accounts, Minister for Media Catherine Martin has announced that the public broadcaster’s finances are to be brought under the control of the Comptroller and Auditor General.

Martin today told reporters that the 116 recommendations made by the expert advisory committees that authored two “landmark” reports on the state of RTÉ will lead the way for the reform of the organisation.

The final report of the forensic accountant, Mazars, also published today, formally identified that a number of barter transactions which had “no valid basis” were made by senior RTÉ figures.

It found that hospitality and travel and subsistence expenditure made through the barter account was under-reported to ministers by RTÉ over the period 2017 – 2022.

The report also confirms that the barter account and contra transactions have now been recorded correctly in RTÉ’s financial statements.

Martin said that as a matter of immediate priority, she will now prepare detailed proposals for the Government to consider which will aim to reform the legislation governing RTÉ, and to assign the C & AG as the auditor of the organisation.

RTE was plunged into crisis in June last year after it admitted understating the fees for its star presenter and previous top-earner Ryan Tubridy.

RTE’s director-general Kevin Bakhurst, who assumed the role in the early weeks of the crisis, has also announced a strategic plan for reforming the institution by 2028.

It includes cutting headcount by 400 – a reduction of up to 20% – and a significant increase in investment in the independent production  sector.RTE said it has welcomed the publication of the reports.

In a statement, RTE said that it accepts “in principle” the recommendations made in the two expert advisory committee reports.

The broadcaster said its board and the RTE’s interim leadership team will take time to fully review all three reports, including the recommendations.

RTE has begun a programme of works to deliver on the recommendations, it said.

RTE chairman Terence O’Rourke said: “RTE has supported both Expert Advisory Committees and Mazars in their work and we welcome the publication of their reports by Government today.

“Their analyses and their recommendations, all of which we accept in principle, will make a significant contribution to the task of rebuilding trust in RTE. RTE is tasked with providing a vital public service.”

A key recommendation is that RTÉ should introduce and publish pay bands for its on-air presenters.

Reforms at RTÉ should include having a financial or formula cap in any future exit scheme; reforming the approach to engaging and paying presenters; improve the functioning of the RTE Board and its committees; and ensure greater transparency for higher executive pay, it was recommended.

Furthermore, there should be improvements to the accountability of the director general to the RTÉ Board; strengthening of the implementation of gender, equality, diversity and inclusion policies in the broadcaster; and measures to ensure that the review of roles and grades and forthcoming review of allowances in RTE are effective, transparent and include consultation with employees.

The cost of three reports has amounted to around €570,000 to date and is expected to reach as much as one million euro as the department awaits confirmation of further invoices.

Minister Martin said said she believes the reports “represent value for money”.

A future funding model for RTÉ is to be agreed before the Dáil’s summer recess and RTÉ will be required to prepare an implementation plan within six weeks, setting out the actions and associated timelines that it will take to implement the recommendations – however, it could take at least a year before significant funding reform is implemented.

Minister Martin wants the process to be completed as quickly as possible but didn’t eliminate the possibility that the issue could become the responsibility of the next government.

Additional reporting by Muiris O’Cearbhaill and Press Association