SIB called upon twice to provide direct help to the City of Culture

Documents obtained by the Sentinel show that the SIB also had to intervene when it became apparent that Ilex may fail to deliver on two projects for which it had responsibility.

It can also be revealed that programme analyst support (£50,000) was sought at the same time as Mr McLaughlin was seconded, and approval given to recruit directly, but only for a three-month “diagnostic” period. The firm identified to give programme analyst support was Flux Events.

A business case prepared in a bid to bring in Mr McLaughlin and the programme management consultant, says that Noel Lavery had been designated as the Senior Responsible Owner (SRO) for the PfG (Programme for Government) commitment, and had established an Oversight Group that met for the first time in April 2012.

It added: “This is the second occasion on which SIB has been called upon to provide direct assistance to City of Culture 2013.

“At the first City of Culture PfG Oversight Group meeting n 19 April 2012 the Ilex URC Supplier Report suggested very significantly heightened risk of non-delivery of the two City of Culture projects for which Ilex URC has responsibility.

“This risk led to the SRO asking SIB to appoint a Project Director for those infrastructure projects.” It said that following the appointment, those projects were back on schedule.

The report continued: “At the City of Culture PfG Oversight meeting in August it started to become apparent that City of Culture 2013 required more project management expertise. Almost all of the main risks were increasing and there was a perceived absence of leadership and organisation for the project as a whole.

It went on: “Derry City Council is responsible for delivery of the project as a whole. City of Culture 2013 comprises a programme of inter-related work streams including the cultural programme at its heart. As the project moves from planning to delivery, the focus is sharpening on the need for effective programme management of the different work streams that fit around the cultural programme.”

It said as Senior Responsible Officer for the DCAL cultural programme funding, and chief executive of Derry City Council, Sharon O’Connor did not have a director supporting her on this project, adding: “That these issues are apparent only three months from the start of 2013, as the project moves from planning towards delivery, presents significant risk to the delivery of the project overall, including the legacy for the city and the value for money of all the public investment in the project.” It argued that a Project Director should be seconded to SIB and made available to Derry City Council, and that project management expertise be sought, “initially for a brief diagnostic period, but possibly thereafter for the duration of the City of Culture project until 31st December 2013”.

The report contained a section titled ‘Procurement Options’, which noted: “The precise nature of the requirement for this support has been difficult to nail down, and has emerged gradually from a series of meetings and discussions that have revealed a complicated, and frankly rather surprising set of circumstances.”

It said the council, DCAL and OFMDFM were managing increased risk of the project failing and needed to take a series of actions that were “now critically late.”

It also said: “At present, Derry City Council has no effective overview of the current status of the City of Culture 2013 project as a whole. The project lacks effective programme and project direction and management, which presents unacceptable financial and reputational risks to government as both principal investor and SRO for City of Culture 2013.”

It proposed that direct contact be made with Dermot McLaughlin, without a tender process due to the urgency of the situation, and also a small number of suppliers of project management expertise.

In a cost/benefit analysis it warned: “Although the costs of this assignment are significant, the benefits of mitigating the severe risks of the projects failing are exceptional....There may also be considerable political reputational risk in the short, medium and long terms.”

The report said the Project Director would report on a day-to-day basis to the council’s CEO, Sharon O’Connor but would also be accountable to the PfG Oversight Group for the delivery of the programme as a whole.