'High probability' more information will emerge in coming days, says RTÉ chair
Of Ní Picture: Board Chaney/ Siún Rte Raghallaigh Chair Gareth The Collins Photos
There is a “high probability” that more information will emerge about RTÉ in the coming days and weeks, Chair of RTÉ’s Board Siún Ní Raghallaigh has told an Oireachtas committee.
It is the third day that RTÉ members have faced a grilling over its finances and governance as explosive new details have emerged about more barter accounts and spending by the national broadcaster.
You can watch the Oireachtas proceedings here:
In her opening statement, Ms Ní Raghallaigh said the board's confidence in the RTÉ Executive has been eroded and that she is "deeply unhappy" over the incomplete information provided by it so far.
The RTÉ Executive Board is responsible for the day-to-day running of the broadcaster and is chaired by the director general, while the RTÉ Board, led by Ms Ní Raghallaigh, sets the policy and "guide corporate direction" for RTÉ.
Ms Ní Raghallaigh said the RTÉ Board cannot fulfil its role to the highest standards when it cannot rely on the information provided.
The board, she said, obviously depends on the communication of timely and accurate information from the Executive.
She added that she cannot give a "blanket yes or no" to the question of whether the Board has confidence in the executive.
Ní Raghallaigh said the Executive "is made up of nine people ranging from news and current affairs to legal to human resources to finance and so on. It is a diverse team."
For her to give a blanket yes or no would be deeply damaging to each of those individuals and the staff members that report to them.
Ms Ní Raghallaigh also called for the auditing of RTÉ's finances to be carried out by the Comptroller and Auditor General.
“Since I became Chair, and in dealing with this crisis, I have made every effort to pursue the facts, irrespective of where those facts might lead,” her statement reads.
“An organisation devoted to truth telling can afford to do no less.
“I am not saying that we have got everything right, but it was the Board who commissioned the Grant Thornton report and brought the initial facts into the light. It was the Board who put the second Grant Thornton process is in train.
“It was the Board who brought disciplinary action against the former Director General.
“And, as I stated in my opening statement to the Public Accounts Committee last week, it is the Board who will drive the pursuit of the facts. Bearing this in mind, I am deeply unhappy at the evident pattern of inconsistency and lack of completeness in the provision of information to date by the Executive. Regrettably, this pattern has persisted I believe there is a high probability that more information will emerge in the days and weeks ahead.”
Ms Ní Raghallaig said she apologised numerous times last week.
“On the contrary, I want to apologise to them. They have been let down also. At what is undoubtedly the darkest episode in RTÉ’s history it may seem odd to attempt to strike a positive note. But we owe this to the public and the staff of RTÉ. I hope this can be a cathartic period that will lead to a reformed and robust RTÉ,” she added.
Group Head of Commerical at RTÉ, Geraldine O'Leary, said she is not sure if her position is tenable. She criticised erroneous reports about her and her husband which she said have “crossed the line” and said there has been an “invasion of privacy” which has impacted her health. She told the media committee in response to Sinn Fein TD Imelda Munster that she will have a conversation with incoming Director General Kevin Bakhurst but added she is due to retire in 8 weeks.
Meanwhile, former chief financial officer Breda O'Keeffe said that she was involved in Ryan Tubridy's contract negotiations until March 2020, but said that she provided a "comprehensive handover" to current CFO Richard Collins.
She was not aware that the deal with Mr Tubridy had been underwritten by the broadcaster until last week.
She said that Mr Collins never contacted her afterwards for any reason, including when RTÉ made a statement about the deal with Mr Tubridy two weeks ago.
She said that she believes Mr Collins "was incorrect" in his recollection that he was only in the CFO role for three days when the release of 2017, 2018 and 2019 top talent earnings were released on 20 January 2021. He had been in the office from January 2020.
She said that all top talent contract negotiations involved the director general (DG), the CFO, head of content and the RTÉ internal solicitor at all stages of the negotiations and that the head of news and current affairs was only involved if news and current affairs broadcasters were involved, but the DG was not involved on a day-to-day basis in this process.
She said that she worked side-by-side with the RTÉ internal solicitor on renewal of talent contracts and that contracts coming up for renewal were discussed at meetings held between the DG, the CFO, the Head of Content, the Head of News and Current Affairs (if required), and RTÉ solicitor to agree the parameters for the contract renewal and this group would decide on the broad parameters of the deal.
"As CFO I briefed the director general on the commercial terms of each contract before finalisation. Final contract terms and conditions were then agreed with the agent or presenter and final contract drafted by the RTÉ solicitor which was reviewed by the CFO and by the Head of Content. My recollection is that final contracts were signed by the Head of Content or Head of News and CA as applicable, and DG was advised."
On Mr Tubridy's deal, she said that Mr Tubridy’s contract for the period 2015 to 2020 was stepped over the years, meaning higher fees in later years compared to earlier years and that the contract included an exit payment of €120,000 to be paid at the end of the contract in 2020 if the presenter remained at RTÉ for the full five-year period of his contract.
The financial objectives for the 2020-2025 contract negotiations with Mr Tubridy were, she said: To reduce the annual service fees by at least 15% per annum and the overall cost of the contract, negotiate out the €120k exit fee "which would represent a material saving to RTÉ".
"In Autumn 2019, a contract renewal proposal was developed between the DG, CFO, Head of Content and the RTÉ solicitor. I don’t recall the level of annual service fees we agreed to offer to the agent at that time. I do recall that the proposed offer, if agreed would deliver significant cost reductions to RTÉ of over €500k over the contract term. This included the waiver of the €120,000 exit fee in the then existing contract."
Ms O'Keeffe said that Mr Tubridy had turned down that contract which would have saved €500,000 over the contract term and that in the first version of the deal with Renault, RTÉ would not have been liable.
"During Autumn 2019, I as CFO and the RTÉ solicitor managed the negotiation process and made financial offers to the agent. These offers were rejected, and negotiations came to a stalemate position in Nov / Dec 2019. I was aware the Head of Content was in contact with the agent outside the formal process to try and find a solution during this period as he told me so. The negotiation meetings and offers made were documented by me and the RTÉ solicitor by email. The DG and Head of Content were updated on the negotiations at every stage by me and the RTÉ solicitor.
"I was advised by either the DG or the Head of Content, I cannot recall which one, that a separate commercial arrangement had been proposed to be added to the financial offer then on the table.
"In this proposal, RTÉ were not to be party to the contract, nor were RTÉ liable for any element or obligation under the contract. There was no cost to RTÉ in this proposed arrangement. I was requested by either the Director General or the Head of Content, I cannot recall which one, to write to Mr Tubridy’s agent advising him of a potential commercial agreement to be facilitated by RTÉ. I did so.
"I spoke to the Head of Commercial and briefed her as she had the relationship with Renault and would make the necessary introductions. The Head of Commercial told me she spoke to Renault about a one-year deal with a possible extension for a further two years. My recollection is that the Head of Commercial advised me that Renault was happy for Mr. Tubridy to host events and saw value in this proposal."
She said that in early 2020, the Head of Commercial advised her that as Renault had already agreed cost budgets for 2020, that the agreement would need to be cost neutral for Renault in the first year.
"This gave rise to a potential rebate to Renault and this potential rebate to Renault was known by me, the RTÉ solicitor, the Director General and the Head of Content. I understood this rebate, if agreed, would be assigned to Mr Tubridy’s RTÉ earnings for 2020. There was never any suggestion otherwise.
"My recollection is that Mr Tubridy’s agent requested that the commercial agreement be underwritten by RTÉ, and this was refused. This continued to be my position and as far as I was aware, that of the Director General, the Head of Content and RTÉ solicitor up to the date of my departure from RTÉ in March 2020. I was not aware any guarantee had been issued until I heard about it last week in media reports."
It comes as Media Minister Catherine Martin confirmed that she had spoken to Ms Ní Raghallaigh about the "deeply unsatisfactory nature in which information is being provided".
Ms Ní Raghallaigh has said the board of RTÉ has written to the deputy director general Adrian Lynch and incoming director general Kevin Bakhurst "outlining that this is totally unacceptable, and that it has eroded their trust and confidence in the Executive".
The Board has requested that swift action be taken.
Ms Martin said she "absolutely understood that erosion of confidence and it is imperative that full clarity around these, and all issues, are forthcoming without any further delay."
To that extent, Ms Martin is meeting with Ms Ní Raghallaigh, Mr Lynch and Mr Bakhurst tomorrow.
She also noted that a forensic accountant will be in place next week. Initially, it was believed this procedure would take a number of weeks.
Ms Martin has also said that another Grant Thornton investigation has been ordered, this time into the musical to get a full extent of the situation. It was revealed on Wednesday that lost €2.2m for the broadcaster after just a month’s worth of performances.
Oireachtas webcasting is provided by the Houses of the Oireachtas Service, in association with HEAnet, Ireland's National Educational and Research Network.