Leaked document suggests seconded project director received 19,000 euro salary increase

THE City of Culture Project Director Dermot McLaughlin was given a pay rise of over 19,000 euro per annum for the duration of his temporary move from Temple Bar Cultural Trust in Dublin to Londonderry, according to documents given to the Londonderry Sentinel.

They suggest that the Strategic Investment Board, which was involved in the secondment arrangement announced at the end of October, was also made aware that a review of the Temple Bar Cultural Trust was underway which included matters of governance, role, financing and staffing.

This review was sparked by the Latitude Report which had been very critical of the trust, though the trust challenged its findings.

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Furthermore a copy of a secondment agreement leaked to the Londonderry Sentinel records: “Also, Dublin City Council Internal Audit as part of its review of DCC subsidiary bodies is carrying out a review of systems and accounting procedures in the Trust.

“It may be necessary on occasion to contact the secondee as matters arise which could impact on the future of the Trust or which are otherwise of significance.

“In the event that the secondee would be required for Board or other meetings TBCT will give adequate notice to the secondee and arrange for his attendance.”

The secondment agreement also states: “The secondment will be for 15 months from 29 October 2012...

“The secondee will continue to be employed by TBCT.

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“TBCT will issue monthly invoices to SIB in respect of the gross salary payment to the secondee for the preceding month.

“The gross salary payable will be 10,300 euro per month for the period, to include an additional remuneration of 19,600 euro per annum agreed between the secondee and SIB beyond Dermot’s current gross salary of 104,000 euro per annum.

“It should be noted that this salary is only payable to the secondee during the period of secondment and does not entitle the secondee to maintain all or any of this amount at the end of the secondment.”

The audit referred to has since been completed and, while there was no claim of wrongdoing against individuals, documentation leaked to the Sentinel recently show it was very critical of Temple Bar Cultural Trust’s Corporate Governance.

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Our reports, by Eamon Sweeney, were subsequently followed up by national media in the Republic.

The secondment came amid some reorganisation in Londonderry. Shortly before the secondment, the Strategic Investment Board noted concerns about “unwelcome press attention in respect of the City of Culture as outlined in the board papers.”

Minutes from a SIB October 16 meeting note: “The PfG oversight group had raised concerns, which were expressed to DCC through DCAL, regarding the management of the City of Culture programme. SIB was subsequently asked by DCC, with the agreement of OFMDFM and DCAL, to provide it with a range of support. This would be in three main areas: (i) communications support to be provided by Fiona Kane (who has the confidence of both the Chief Executive of Derry/Londonderry City Council and the Culture Company); (ii) programme management for those non-cultural activities; and (iii) events planning. BH noted that this was a substantial commitment, particularly as there is less than two months left before the first event is due to take place. OFMDFM has approved the required single tender actions.”

Shortly before that Derry City Council took over the marketing and communications function of the Culture Company. At that stage communications head Garbhan Downey was suspended.

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Two weeks ago it emerged he has now been sacked but his legal team has revealed that he will contest that decision publicly, at an industrial tribunal.

OFMDFM was asked to comment on queries made on Monday, but so far no reponse has been received.