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Cork City Council's fraud bill


DaveMc

Well-known member
Joined
Jan 31, 2009
Messages
860
What are the checks and balances in place when applying for contracts that are paid from the public purse?
I assume that at the very least procurement rules dictate that indemnity insurance be in place to prevent loss to the taxpayer?

Phoenix Magazine Nov. 2012;
A CORK businessman
named Karl McCaughley pleaded guilty last month to defrauding Cork City Council (CCC) out of €140,000 and is due to be sentenced next month. This is just the latest setback for McCaughley
 who has had a number of judgments registered against him in recent years.
McCaughley pleaded guilty to 23 sample counts of theft, three of forgery and two counts of deception. Separately, CCC had taken 
a civil case against the fraudster in 2009, which resulted in McCaughley being landed with a substantial judgment of €925,000 last March.
A month later, a
 Cork aviation businessman named Daniel Healy was granted a €10,000 judgment in a Circuit Court case taken against McCaughley, who was subsequently hit with another judgment for almost €60,000, courtesy of Friends First Finance.
McCaughley has tried 
his hand at various business ventures over the years,
with little success. One such venture was a company
 called HMI (Partners) Ltd, a Cork-based retail outfit which was set up in 2008 but which later was the subject of at least five legal actions over unpaid bills, resulting in judgments awarded against it for €15,000, the bulk of which was courtesy of Airtricity Ltd. HMI was struck off by the Companies Registration Office (CRO) for not filing its accounts last year.
Elsewhere, McCaughley
has also been behind a freight company called Sunmount Distribution Services Ltd and a car valet company called Kinsale Carcare Ltd, both of which were also struck off by the CRO last year for failing to file accounts.


http://www.thephoenix.ie/phoenix/subscriber/library/volume-30/issue-22/page-33-37.pdf;jsessionid=D1EC2C22321D045AAD0A4210A33E8CD0
 

DaveMc

Well-known member
Joined
Jan 31, 2009
Messages
860
You just can't keep a good 'Goldhawk' down. From this weeks Phoenix Magazine:

FANS of Goldhawk will
recall the adventures of Cork businessman Karl McCaughley, who awaits sentencing in Cork District Court after having pleaded guilty to defrauding Cork City Council out of €140,000 (see The Phoenix 2/11/12). McCaughley was separately hit for a judgment of no less than €925,000 in March in the High Court following a civil case taken by the council and Goldhawk has recently learned that the council has agreed to an installment scheme of €25 a week. At that rate, it will take McCaughley until 2721 to finally settle the bill.
McCaughley perpetrated his fraud after he was awarded a contract in 2005 to supply the city council with parking disks, despite having no background in this area. The corporate affairs section of Cork City Council declined to give Goldhawk any details about the awarding of this contract. However, Goldhawk understands that this issue may be raised by Cork City Councillors in the near future.
 

DaveMc

Well-known member
Joined
Jan 31, 2009
Messages
860
Would the following rules from eprocurement.ie apply in this case?
If so, why doesn’t the City Council claim off the insurance instead of a 700 year installment plan?

"Financial and Economic Information"
Evidence of financial and economic standing is usually ascertained through the provision of:
Audited accounts
Overall turnover for the previous 3 financial years
Turnover related to the products or services being purchased over the same period.
For services contracts evidence of risk indemnity insurance.
 

cricket

Well-known member
Joined
Nov 7, 2009
Messages
14,029
There would appear not have been any judgements against him when he got the parking discs contract. However, was any check done on the resources needed to carry out the work ?
The High Court claim being settled for €25 per week on a €925,000 award is a joke. TV licence evaders are jailed for non payment of €162 !
 

DaveMc

Well-known member
Joined
Jan 31, 2009
Messages
860
There would appear not have been any judgements against him when he got the parking discs contract. However, was any check done on the resources needed to carry out the work ?
The High Court claim being settled for €25 per week on a €925,000 award is a joke. TV licence evaders are jailed for non payment of €162 !
:confused:And I assume accepting the guilty plea “to save the State considerable expense” also meant that no witnesses needed to be called to open Court to ‘explore’ how he got such a lucrative gig?
 

DaveMc

Well-known member
Joined
Jan 31, 2009
Messages
860
Cork City Council voted on their annual budget tonight; should a loss of 1 million plus to the taxpayer through fraud be listed in the figures?
 

DaveMc

Well-known member
Joined
Jan 31, 2009
Messages
860
Nothing to do with the fraud mentioned above, but is there any checks and balances in the tendering process at LA level? Did someone 'forget' that vans were on hire for 5 years?
Any council would welcome 6 million in todays climate!

Council in breach of rules with
 

wexfordman

Well-known member
Joined
Nov 19, 2006
Messages
7,877
It's ok, we have the property charge now that'll cover it. No need for further questions, please close the thread!!
 

He3

Moderator
Joined
Oct 1, 2008
Messages
17,094
Got the gig in 2004. Came under suspicion of internal City auditors a year later. That would be 2005.

Then a leisurely unexplained four year gap until an external accountants' report in 2009.

What year are we in now? 2013.

Time flies.

Examiner said:
He said McCaughley became an agent for Cork City Council for the distribution of parking discs in 2004 and for bin tags to shops in Cork City in 2005.

“He delivered parking discs and bin tags and received payment from the retailers and was obliged to lodge payments in Cork City Council’s bank account by the following day at the latest,” said Det Garda Horgan.

“Within a year, he came to the attention of the internal audit department of Cork City Council. They had concerns about his returns. That ultimately led to a audit [by Pricewaterhouse Cooper] who issued a report in 2009. A report was sent to the gardaí and gardaí initiated an investigation. The Garda investigation discovered the thefts before the court.”
City council scammer had several luxury cars | Irish Examiner
 
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DaveMc

Well-known member
Joined
Jan 31, 2009
Messages
860
The home ransom tax will be a godsend for Cork City Council; all that extra taxpayers hard earned cash to waste!
 
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