The second investigation conducted by Grant Thornton on “hidden payments” has come to a close. However, the focus will now shift towards examining the failure of Toy Show The Musical. Politicians and the Government are also preparing to ask their own questions.
Even after the publication of two reports, Grant Thornton’s work within RTÉ is not yet finished. An RTÉ spokesperson confirmed that investigations will now begin into the ill-fated Toy Show The Musical, which resulted in a loss of €2.2m for the broadcaster. Initially, RTÉ had hesitated to disclose the financial figures related to the musical due to their sensitive nature. However, these numbers were eventually revealed to Oireachtas committees a few weeks ago. The data showed that only 11,044 tickets were sold, and RTÉ managed to generate less than €500,000 from ticket sales and sponsorships. This was a significant shortfall of €2.7m compared to expectations. The total cost of the musical amounted to €2.7m, with an actual loss of €2.2m in the first year.
The musical, held at the expensive Convention Centre in Dublin, faced cancellations of seven performances leading up to Christmas due to cast members falling ill. The idea for the musical was endorsed by Rory Coveney, who resigned as RTÉ’s director of strategy when Kevin Bakhurst took over as the new boss.
In addition to the investigation into Toy Show The Musical, RTÉ has employed solicitors McCann FitzGerald to scrutinize the retirement package of former CFO Breda O’Keeffe. Questions have also been raised about the exit package of former CEO Dee Forbes. However, Kevin Bakhurst has announced an inquiry into two schemes related to redundancy and early retirement packages for staff in 2017 and 2021. The aim is to assess the context, terms and conditions of each scheme, and analyze if any cost savings were achieved. The review will also investigate whether tax-exempt statutory redundancy payments were appropriately given to those who accepted voluntary exit offers under each scheme. This investigation is expected to conclude by the end of next month.
The Government has initiated two independent reviews of RTÉ. Firstly, an expert governance group will evaluate the suitability of RTÉ’s governance framework and its alignment with best practices. The group will also examine the Grant Thornton reviews to identify governance issues and evaluate the organizational culture. The commercial aspects of RTÉ will be examined separately by Professor Niamh Brennan, a corporate governance expert. The second review will focus on contractor fees and human resources (HR), led by employment relations and HR expert Brendan McGinty, along with Patricia King, the former general secretary of ICTU. This review will assess the mechanisms and oversight used by RTÉ in negotiations with presenters and contractors, including their fees and the use of agents, and evaluate its impact on costs.
It is worth noting that negotiations with presenters operating as contractors and using agents, such as Noel Kelly, who represents Ryan Tubridy, Claire Byrne, and Joe Duffy, may no longer be allowed. Kevin Bakhurst has expressed his unwillingness to negotiate with Noel Kelly. Mazars, a forensic accounting firm, has been appointed to conduct an examination of RTÉ’s barter account and other accounts. The two reviews have a timeline of six months to complete their work, which means the RTÉ saga will continue into early next year.
The Dáil’s Public Accounts Committee (PAC) and the Media Committee have launched their own inquiries. RTÉ executives, including Ryan Tubridy and his agent, have already been called to appear before the committees. The Media Committee now intends to hear from the rest of the RTÉ board who have not yet been questioned. The PAC has also expressed its intention to hear from former director general Dee Forbes and head of content Jim Jennings, both of whom have been unable to attend due to illness. PAC chairperson Brian Stanley has also expressed a desire to hear from former CFO Breda O’Keeffe, current CFO Richard Collins, and Deloitte, the auditors of the national broadcaster.
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