Latest news with #NewDirectionStrategy
Irish Times
30-04-2025
- Business
- Irish Times
RTÉ confirms €3.6m write down on part-abandoned IT project
RTÉ has disclosed to Minister for Arts and Media Patrick O'Donovan that it was forced to write down €3.6 million on an IT project that had to be partially abandoned. The IT project was funded by some of the proceeds of RTÉ's sale of lands on its Montrose campus for €107.5 million in 2017. The broadcaster said it was designed to replace legacy finance and HR systems that were at or near the end of their life. In a statement issued on Wednesday night, first reported by The Currency website, the broadcaster said two suppliers were appointed on foot of submitting the cheapest proposal. The broadcaster said, however, 'issues arose almost immediately', adding the suppliers did not resource the project sufficiently but also resource constraints within RTÉ contributed. READ MORE Testing revealed the product 'did not meet expectations and over-ambitious timelines', which RTÉ said was compounded in 2020 with the outbreak of the Covid-19 pandemic. The contract was terminated with one of the appointed suppliers, which was the subject of a settlement agreement that, in turn, was the subject of a confidentiality clause. RTÉ said it then engaged with another supplier. The project restarted in August 2022, with the finance system going live in March 2023. The broadcaster did not proceed with the HR elements of the project. RTÉ said the majority of the impairments relate to the effort to deliver the HR part of the project, coming to some €2.3 million, while €1.3 million relates to the delayed finance elements. In the aftermath of the controversy over spending on a failed IT system at the Arts Council, Mr O'Donovan wrote to agencies and bodies operating under the remit of his department seeking information about projects costing more than €500,000. He also sought information about capital projects below that level where there was significant expenditure but they had been abandoned or failed to deliver on their objectives. [ Three companies that shared €4.8m from Arts Council for abandoned IT project named Opens in new window ] RTÉ said the impairments were noted in its annual accounts during the years 2020-2023, but 'more specific details relating to this project have been disclosed to the Minister as part of the review of capital projects'. The project was one of 39 that fell into the category of spending of €500,000 or more. The broadcaster said that across all these projects, the overspend was worth less than €500,000 in total. The statement from RTÉ said the impairment was 'very much an exception' in the context of extensive projects it has delivered. RTÉ has faced financial difficulties in recent times and announced last week the terms of a voluntary redundancy package intended to cut 400 jobs over coming years. Job losses and other changes have come as part of the broadcaster's New Direction Strategy, which Director General Kevin Bakhurst said would make the organisation 'more agile'.
The Journal
24-04-2025
- Business
- The Journal
RTÉ boss to address staff today over new voluntary redundancy scheme to cut 400 jobs
STAFF AT RTÉ will be addressed by boss Kevin Bakhurst later this afternoon to provide further details on a voluntary redundancy scheme, opened at the broadcaster yesterday as part of its agreed strategy to cut 400 jobs. In order to secure a €20m bailout from the government last year, RTÉ launched its 'New Direction Strategy' which included earmarked plans to cut the workforce , limit presenters' salaries and update its online offerings. It agreed to cut 400 jobs through a voluntary redundancy scheme, which opened yesterday. Employees with between two and more than ten years of service are invited to consider the programme, which has limited payouts to €300,000. Advertisement An email sent to staff by Bakhurst yesterday said that the Department of Public Expenditure had given the station approval to run the scheme this year and that any future programme may be less financially beneficial to applicants. Each payment issued to staff will be calculated by multiplying employees' years of service and different rates of pay per their exit salary. For example, those working at RTÉ for two years will be entitled to four weeks of pay for every year service, or eight weeks of pay. Applications will close on 23 May, with final decisions due in September following discussions between the RTÉ leadership team and Department of Media. Bakhurst and the broadcaster's HR director will address staff later today with more information. RTÉ was plunged into crisis in June 2023 when the State broadcaster revealed it under-declared fees to Tubridy, its then-highest-paid staff member. The scandal widened as a series of other financial and governance issues emerged. It was later approved by Cabinet in July 2024 that RTÉ would receive €725m over three years as part of a new multi-annual funding model, which also made changes to how much control the state has over the public service broadcasters' finances. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
