Barter report says RTÉ had ‘alarming gaps’ in procedures and record-keeping

ancy firm Mazars was asked to look at how the broadcaster was run following the revelation of undeclared payments to Ryan Tubridy.
Barter  report says RTÉ had ‘alarming gaps’ in procedures and record-keeping

By Cillian Sherlock and David Young, PA

A report by forensic ants into RTÉ’s use of off-balance-sheet s has identified “alarming gaps” in internal policies, procedures and controls, the Minister for Media has said.

Catherine Martin has published the interim report by forensic ant Mazars, which she appointed to examine RTÉ’s use of a UK-based barter for certain commercial transactions.

RTÉ has been reeling since revelations earlier in the summer that it misreported the salary paid to star presenter Ryan Tubridy and failed to properly disclose €345,000 of payments to him between 2017 and 2022.

Last week, new director general Kevin Bakhurst announced that Mr Tubridy would not be returning to his weekday radio show.

RTE pay revelations
Catherine Martin has published the interim report into the broadcaster. Photo: Brian Lawless/PA

The furore around the payments to Mr Tubridy has become a wider crisis for the national broadcaster amid further disclosures about RTÉ’s internal financial, ing and governance practices and its expenditure on corporate hospitality for advertising clients.

The forensic ancy report by Mazars is one a series of probes commissioned into RTÉ in the wake of the controversy.

Barter s are commonplace in the media industry. They allow organisations to exchange advertising airtime that would otherwise go unsold in return for goods and services from companies.

RTÉ’s use of barter spending has come in for intense scrutiny since it emerged that the broadcaster paid €150,000 to Mr Tubridy through one such , as part of an undisclosed commercial arrangement with a sponsor.

RTÉ had also faced criticism for using barter transactions to spend hundreds of thousands of euro entertaining commercial clients, including on a trip to the 2019 Rugby World Cup in Japan.

Further contentious transactions included almost €5,000 on 200 pairs of flip-flops for a summer party for clients.

Mazars’ interim report has identified significant gaps in controls and record keeping.

Ms Martin published it following a meeting with Mr Bakhurst and the RTÉ board chair, Siún Ní Raghallaigh, at her department in Dublin.

RTE pay revelations
Kevin Bakhurst has been appointed as RTÉ’s new director general. Photo: Brian Lawless/PA

It also found there was a lack of signed contracts between RTÉ and the barter media agencies used and that there was an absence of budgetary reporting for barter purchases.

Ms Martin said: “The report from the forensic ants again sets out alarming gaps in internal policies, procedures and controls that existed in RTÉ.”

Issues highlighted in the interim RTÉ report from forensic ant Mazars include:

  • An apparent lack of signed contracts between RTÉ and the barter media agencies used;
  • No properly documented policy and procedures for use of the barter and inadequate record keeping;
  • An absence of budgetary reporting for barter purchases;
  • Goods or services acquired through the barter outside RTÉ standard purchasing and procurement processes;
  • No formal list of staff limiting who could make purchases through the barter ;
  • No formal list of approvers for purchases.

Commenting on the findings, Ms Martin said: “This lack of properly documented policy and procedures for using the , and an apparent lack of checks and controls over who used it, is not befitting a public service organisation, and cannot be repeated.”

Earlier, Mr Bakhurst said that RTÉ may have to consider compulsory redundancies “at some point” as the national broadcaster deals with massive reductions in TV licence purchases.

After the scandal rocked the broadcaster in June, there were 37,089 fewer licences purchased across eight weeks when compared directly with the numbers bought in the same period last year – representing a possible loss of €5.9 million.

Speaking to reporters after a meeting with Ms Martin, Mr Bakhurst said RTÉ is “absolutely not considering compulsory redundancies at the moment” but added: “We may have to do that at some point.”

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