Latest news with #OireachtasMediaCommittee
Extra.ie
5 days ago
- Business
- Extra.ie
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.
Irish Independent
5 days ago
- Business
- Irish Independent
RTÉ admits an overrun of almost €1m on another IT system budget at Oireachtas committee
RTÉ representatives, including the director general Kevin Bakhurst, appeared before the Oireachtas Media Committee where they were quizzed on a failed IT system that resulted in a €3.6m write down. However, the committee was told there was another IT project, this time a channel management system (CMS), that went over budget by €900,000. The revelation came in an answer to Social Democrats TD Sinead Gibney, who asked were there other IT systems that ran into issues. In response, RTÉ's chief financial officer Mari Hurley said that the CMS had gone over budget. 'I conducted the exercise in terms of reviewing projects greater than €500,000 since 2020. There was one additional project, which went on the list to the department [of media], which was a channel management system,' Ms Hurley said. 'If you compare its spend, relative to its initial budget, it overran by €900,000.' Ms Hurley also told the committee that this resulted in an impairment taken in 2019 of €390,000. The CMS is now in use, Mr Bakhurst told committee members. In a statement to the Irish Independent, RTÉ said 'the replacement of RTÉ's channel management system project – an important strategic project – is one of the projects that was funded from the proceeds of RTÉ's land sale in 2017'. The national broadcaster said during the testing stages of the project in 2019, a number of issues came to light that could not be resolved by the appointed vendor. ADVERTISEMENT As a result, RTÉ decided to terminate the contract with the vendor in December 2019 which resulted in the €390,000 write off. RTÉ confirmed that before work on the project began, a 'competitive public procurement process' took place. When the contract for vendor one was terminated, the project was then awarded to the second vendor to complete the project. 'The overrun on the CMS project of €900,000 was due to vendor two being more expensive and the delays due to the above issues,' RTÉ said. 'However, this project was one of 39 capital projects completed or being implemented by RTÉ since January 2020 costing a total of c.€57m and with a total variance to the initial budget approved of less than €0.5m.' Speaking after the committee hearing, Ms Gibney said it was 'simply not good enough for these financial matters to be merely noted in RTÉ's accounts' and that issues like this 'should be highlighted with the government'. She added: 'Just weeks after it emerged RTÉ had to write-down €3.6m due to a partly failed IT project, we learn today of another waste of money at the station in recent years. 'It is particularly shocking this matter has only come to light now, given management's pledge to oversee a new culture of transparency and accountability at RTÉ following a litany of controversies, which have undermined public confidence in the broadcaster.' It comes as disgruntled former RTÉ employees wrote to the committee with concerns on bogus self-employment and religious content they wanted politicians to raise. The former employees outlined their concerns and issues with the broadcaster in the hopes politicians would raise them with RTÉ top brass. This correspondence meant committee chair Alan Kelly had to issue an additional warning at the start of the meeting, saying politicians were not to identify any individuals or entities during the meeting. 'I'd like to remind all members that the names of individuals or identifiable entities or any personal information relating to them should not be discussed publicly in today's session. If it strays into that, unfortunately I will have to intercept and ask you to desist,' he said. However, some of the correspondence was rejected by the committee after it sought legal advice. TDs and senators on the committee decided to reject some of the letters as they included possibly defamatory statements. Some of the former employees are caught up in legal cases with the broadcaster. During the committee hearing, Mr Bakhurst said he was 'infuriated' by the coverage of the promotional video for RTÉ news and current affairs. It was reported that RTÉ staff were angry at a number of issues, including the use of extras in the video who acted as journalists in the newsroom. In response to a question from Fianna Fáil TD Peter 'Chap' Cleere, Mr Bakhurst said that 'a significant amount of the press coverage has been totally inaccurate about it'. He added that two plants were taken from somewhere else in RTÉ for shooting the video and were used to cover up electrical points.
Irish Daily Mirror
5 days ago
- Business
- Irish Daily Mirror
Taoiseach defends going on Ryan Tubridy's podcast as he hits out at 'witch hunt'
Taoiseach Micheál Martin has defended taking part in former RTÉ broadcaster Ryan Tubridy's podcast, as he said he will not join in a 'witch hunt' of the star. At an Oireachtas Media Committee meeting on Wednesday, RTÉ Director General Kevin Bakhurst confirmed that Mr Tubridy never returned €150,000 that he said he would give back to RTÉ during the financial scandal. In 2023, it emerged that his salary was undeclared by €345,000 over a three-year period due to a 'tripartite agreement' between Tubridy and his agent Noel Kelly, RTÉ and Renault. The 'side deal' saw RTÉ underwrite a €75,000-a-year commercial deal with Renault. While Renault paid Mr Tubridy for year one, RTÉ ended up giving Mr Tubridy €150,000. Mr Tubridy had committed to giving the money back but has never done so. The Taoiseach took part in the podcast, The Bookshelf with Ryan Tubridy, last month. When asked if it was appropriate to take part in this and if Mr Tubridy should give the €150,000 back, Mr Martin said he would have to refresh his memory on the €150,000 element of the scandal. The Taoiseach said: 'I find it extraordinary if you're saying I shouldn't participate in podcasts or if somebody is suggesting that. 'We live in a democracy. Ryan Tubridy has to deal with RTÉ and RTÉ has to deal with Ryan Tubridy. 'There's been lots of journalists and broadcasters who have all sorts of sponsorship deals that didn't begin today or yesterday. 'I think we're moving a bit… Irish society has always tolerated free debate and people have podcasts and so on like that. 'I would participate on podcasts who I think are reasonable, the people are reasonable on them. 'I think it is going a bit too far to suggest people are somehow wrong to participate in podcasts.' When asked about Mr Bakhurst's comments at the Media Committee saying he would like if Mr Tubridy gave the money back, the Taoiseach said he would not get involved in a 'witch hunt'. He continued: 'Many broadcasters have had sponsorship deals. 'RTÉ tolerated that for a long time. I'm not going to get into the ins and outs of any particular arrangements between RTÉ broadcasters, former broadcasters. I'm not going to go along with that. 'I didn't hear the hearing. I'm not going to join any witch hunt on any individual. ''I'm not aware of the specifics here. When I say witch hunt, I think there has been an element of a witch hunt in all of this over the last few years. 'I'n not going to go like that and just join any sort of attack on any individual. That's what I'm simply saying.'
Irish Daily Mirror
5 days ago
- Business
- Irish Daily Mirror
RTE DG Kevin Bakhurst confirms huge drop in presenters on over €250,000
Just two presenters in RTÉ have salaries higher than the Director General's €250,000 salary, Kevin Bakhurst has confirmed. At the Oireachtas Media Committee, Mr Bakhurst also hit out at 'inaccurate' stories about a controversial new advertisement filmed in the RTÉ newsroom. RTÉ became the stars of the Oireachtas Committees two years ago as they discussed a range of financial scandals at the broadcaster, prompted by news that Ryan Tubridy's salary had been underdeclared by €345,000 due to the creation of a tripartite agreement with Renault. In November 2023, Mr Bakhurst confirmed that anyone signing a new contract could not be paid more than his €250,000 salary. The list of top 10 earners for 2021 showed that Ryan Tubridy (€440,000), Joe Duffy, (€351,000) Claire Byrne (€350,000), Ray D'Arcy (€305,000) and Miriam O'Callaghan (€263,500) all earned over €250,000. At the Oireachtas Media Committee meeting on Wednesday, Mr Bakhurst confirmed to Fianna Fáil's Malcolm Byrne that the number of high salaries has decreased drastically. He said: '[There are] two, as I understand it. They would be legacy contracts of presenters.' RTÉ's annual report for 2023 listed Joe Duffy (€351,000), Claire Byrne (€280,000) and Miriam O'Callaghan (€263,000) as all earning higher salaries than the DG. Mr Duffy will host his final Liveline programme on June 27 and confirmed his contract with the national broadcaster would not be renewed. When Fianna Fáil's Padraig O'Sullivan asked if Mr Duffy's successor would be paid the same salary, Mr Bakhurst repeated that no one would be paid more than the DG. He later confirmed to the same TD that Mr Tubridy has still not repaid the €150,000 paid to him for unfilled work. Mr Bakhurst was also quizzed on the creation of a new ad that has led to reported anger in RTÉ as extras were used in the production rather than working journalists. There were also suggestions that props had been brought in to decorate the newsroom and later removed. Mr Bakhurst stated that recent reports on this controversy have 'infuriated him' as he argued many had been 'inaccurate'. We committed to spending €50,000 to refurbish the newsroom. He said that the only props that were used were two plants that were moved from other areas to block electrical outlets. He continued: 'There's been some coverage about extras being brought in. Conversations were had about this between our marketing team, who are doing this, and the news management team about how we're going to do it. 'The initial request was, 'Can some journalists from the newsroom sit in the back?' ''They're gonna be blurred out, by the way, can they sit in the background while we're filming this for several hours?' 'The answer was, 'No, our journalists are too busy'.' In total, Mr Bakhurst said this project cost 'less than €100,000'. Fianna Fáil Senator Alison Comyn later quizzed Deirdre McCarthy, Managing Director, News and Current Affairs at RTÉ, on the advertisement, who said it would cost €77,000 plus VAT. She echoed Mr Bakhurst's comments, stated that there was 'misinformation' about the ad, and denied that it had been scrapped. Ms McCarthy said: 'The promo reflects the working, daily lives of the three prominent journalists in the division at the moment. 'It needed to do some filming in the newsroom and a decision was made that we wouldn't be taking journalists off their day-to-day duties and responsibilities. 'Instead, it was agreed with marketing that a number of extras would be hired, and these will be out of focus, so you won't even see these people.' They later confirmed that six people were in Brussels this week to film part of the ad. RTÉ were also quizzed about an HR and finance system that incurred losses of €3.6 million. In response to Fine Gael Senator Garret Ahearn, 11 RTÉ execs who were at the Media Committee stated that they only became aware of the scale of the money lost in February. This is despite the impairments being noted in accounts from 2020 to 2023. The issue came to light in recent weeks following Media Minister Patrick O'Donovan requesting details on botched projects losing over €500,000. Mr Ahearn said: 'There's 1,850 [people employed in RTÉ]'. Is there any one of that 1,850 that was aware before that?' Mari Hurley, RTÉ's Chief Financial Officer, said people in 'finance and in the organisation' would have been aware as impairments were in the accounts. She noted that a junior member of staff flagged the impairment with Ms Hurley when information was sought but 'felt that this was correctly accounted for at the time'.
Irish Independent
5 days ago
- Business
- Irish Independent
Kevin Bakhurst confirms RTÉ has not received €150,000 back from former presenter Ryan Tubridy
latest | Communication between the executive and RTÉ board was not good at time of IT system failure, says Mr Bakhurst Around €750,000 of €3.6m write off were in staff costsRTÉ license fee earnings declined marginally in 2024 compared to 2023Cost of the controversial promo ad for RTÉ New is 'less than €100,000'RTÉ estimates voluntary exit package will cost about €15m RTÉ director general Kevin Bakhurst and the broadcaster's leadership team appeared before an Oireachtas Media Committee today.
