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Lack of prosecutions over NIEC cover-up 'unacceptable'

Former NIEC chief executive Janice McAleese is no longer living in Northern Ireland
Former NIEC chief executive Janice McAleese is no longer living in Northern Ireland Former NIEC chief executive Janice McAleese is no longer living in Northern Ireland

IT is "unacceptable" that no one has been prosecuted seven years after the Northern Ireland Events Company (NIEC) chief executive left the quango with debts of almost £1.5 million and a mess of "fabricated" documentation.

A member of Stormont's Public Accounts Committee (PAC) has warned that police risk running out of time after "dragging their feet" in an investigation that began within months of its collapse in 2008.

SDLP assembly member John Dallat said hope is fading that any of the public money squandered will ever be recouped.

And despite a Department of Enterprise, Trade and Investment (Deti) investigation concluding in March 2014 that NIEC boss Janice McAleese, and auditors "failed to adequately discharge their responsibilities" - no decision has been taken on `disqualification proceedings' which ban an individual from being a company director in the future.

By contrast a report by the Northern Ireland Audit Office which began in August 2014 was completed and published this week, with auditors due to appear before the PAC next week to discuss their findings.

In response to Irish News questions, police would only say: "Investigations are ongoing and it would be inappropriate to comment any further."

"I can understand the anger of the wider public who are struggling to pay their tax bills, while we have had almost £1.5m (disappear) with seemingly no consequences," Mr Dallat said.

"The longer the time between the thing happening and people being brought to book, the smaller the chance of successful prosecution or of getting any of the money back."

Ms McAleese was criticised in the report for failing to declare a "significant conflict of interest" when she awarded a £120,000 contract for building a Motocross track to a man she was in a relationship with.

There is no documentary evidence that a tender process took place.

Almost £1.1m of the quangos debt was later traced by auditors to promotion of five Motocross and Supermoto motorbike events.

The Irish News understands the pair have since married and are no longer living in Northern Ireland.

Ms McAleese resigned from NIEC in 2007 - just before the extent of the debt was uncovered.

By the time Deti auditors became involved, the quango had been "technically insolvent" for two years without anybody noticing.

Both the parent department (culture, arts and leisure) and the NIEC board are heavily criticised in the report for operating "a passive form of governance and oversight and in doing so, failed to adequately discharge their respective responsibilities".

Its auditors have been referred to the Chartered Accountants Regulatory Board "in relation to actions which may be contrary to professional requirements".