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.