Kevin Bakhurst says €3.6m RTÉ loss is ‘very different' to past scandals
RTÉ will spend a further €1.6 million on a new human resources software system after previous efforts to upgrade it resulted in a €3.6 million write-down for the national broadcaster.
But director general Kevin Bakhurst told politicians that while the write-down was 'very unfortunate', it was 'very different' from the financial scandals at RTÉ in 2023.
He said the main part of the project, an updated finance system, had been delivered, while the HR element had not. RTÉ director general Kevin Bakhurst. Pic: Fran Veale
He told the Oireachtas Media Committee yesterday: 'Big projects, and particularly big IT projects, can go wrong, and what I've looked back at is how the organisation tried to salvage that, and what are the lessons learned from that.'
RTÉ's HR director, Eimear Cusack, said yesterday that the broadcaster is still using the same system that has been in place for the last 24 years, describing its condition as 'end of life'. But she also disclosed that the organisation is currently tendering for a new HR software.
Richard Waghorn, RTÉ's chief technology officer, said that a budget of € 1.6 million has been approved for the system, which he anticipates will be delivered by next year. However, he noted that additional costs to maintain the system are expected on an annual basis. Eimear Cusack, Director of Human Resources, and Kevin Bakhurst, Director General, pictured arriving at Leinster House, Kildare Street, Dublin. Pic: Tom Honan
RTÉ's appearance before the committee yesterday comes after the broadcaster confirmed that it had written down € 3.6 million on the partly failed IT system.
Ms Cusack told the committee that the project 'ran into a number of difficulties'. 'I think that there were a number of issues that arose, particularly between the contractor and the subcontractor.'
When it was put to her that the spec wasn't right, the right contractor wasn't chosen, and it was not properly project-managed, she said: 'I couldn't agree with that.' Eimear Cusack, Director of Human Resources. Pic: PA Wire
She added: 'We put in our requirements, the contractor and the subcontractor who won the tender said that they could deliver on those requirements. Ultimately, the finance system was delivered upon.
'The HR system, they could not deliver on, but that was not known at the time that they signed up, and they said they could deliver on it.'
Mr Bakhurst said that one example of the changes made as a result of this failure is that every month, the full list of significant capital projects now goes to the leadership team. Kevin Bakhurst. Pic: Fran Veale
An RTÉ spokesman said that the new contract to provide the system is still out to tender and that a winning company has yet to be selected.
The media committee also heard that 328 people had applied for RTÉ's voluntary exit programme (VEP), which was launched as part of efforts to slim down the broadcaster's workforce by 400 by 2028.
Of these 328 staff, 127 will be made redundant this year. Mr Bakhurst said that RTÉ expects the cost of 2025 redundancies will reach € 15 million, equating to an average payment of €118,000 per head. RTE director general Kevin Bakhurst (left) and acting deputy-general Adrian Lynch. Pic: Brian Lawless/PA Wire
But the director general stressed that the final cost will depend on the profile of those approved to exit the organisation this year, which has yet to be determined.
Deputy director of RTÉ Adrian Lynch, chairman of the RTÉ board Terence O'Rourke, RTÉ chief financial officer Mari Hurley and director of commercial Gavin Deans also appeared before the committee.
Ms Hurley said that there was a 4% decline in TV licence fee revenues in 2024 compared to 2023. 'The more significant declines that have been experienced in 2023 have been averted,' she said. Pic: Niall Carson/PA Wire
Mr Bakhurst also confirmed that former RTÉ presenter Ryan Tubridy has not repaid the €150,000 he received from the broadcaster for two promotional events that did not take place.
Mr Bakhurst has previously said Mr Tubridy had planned to return the money, stating that there was a 'moral case' to pay RTÉ back.
He reiterated yesterday that he 'would like' the former Late Late Show host to return the sum. Taoiseach Micheál Martin was asked yesterday if he thought Mr Tubridy should repay the money, but said he wasn't going to get into any 'witch hunt'.
'I think there has been an element of a witch hunt in all of this over the last three years. So I'm not going to go like the herd and just join any sort of attack on any individual,' Mr Martin said.
He also said that he knew that the wider media had its own interests in RTÉ, saying, 'You can fight your battles, I'm not driving anything'.
Mr Martin said he was 'not here' to 'micromanage' RTÉ but noted that the broadcaster had made 'some progress' in terms of the commitments it had made in terms of its policy and role as a public service broadcaster.
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