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Thread: Cork City Council's fraud bill

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    Default Cork City Council's fraud bill

    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.


    http://www.thephoenix.ie/phoenix/sub...0A4210A33E8CD0

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    You just can't keep a good 'Goldhawk' down. From this weeks Phoenix Magazine:

    FANS of Goldhawk will
recall the adventures of Cork businessman Karl McCaughley, who awaits sentencing in Cork District Court after having pleaded guilty to defrauding Cork City Council out of €140,000 (see The Phoenix 2/11/12). McCaughley was separately hit for a judgment of no less than €925,000 in March in the High Court following a civil case taken by the council and Goldhawk has recently learned that the council has agreed to an installment scheme of €25 a week. At that rate, it will take McCaughley until 2721 to finally settle the bill.
    McCaughley perpetrated his fraud after he was awarded a contract in 2005 to supply the city council with parking disks, despite having no background in this area. The corporate affairs section of Cork City Council declined to give Goldhawk any details about the awarding of this contract. However, Goldhawk understands that this issue may be raised by Cork City Councillors in the near future.

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    who does he know?
    If I ask a question don't just 'like' the post, reply to it. - If I post a lot about a subject I may write a post about it at http://dublinstreams.blogspot.ie/

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    Quote Originally Posted by lostexpectation View Post
    who does he know?
    I think this is the pertinent question.

    If this guy had a history of court judgements against him, these charges would have been registered against him and/or his company.
    Politics.ie moderators should moderate instead.
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    Would the following rules from eprocurement.ie apply in this case?
    If so, why doesn’t the City Council claim off the insurance instead of a 700 year installment plan?

    "Financial and Economic Information"
    Evidence of financial and economic standing is usually ascertained through the provision of:
    Audited accounts
    Overall turnover for the previous 3 financial years
    Turnover related to the products or services being purchased over the same period.
    For services contracts evidence of risk indemnity insurance.

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    There would appear not have been any judgements against him when he got the parking discs contract. However, was any check done on the resources needed to carry out the work ?
    The High Court claim being settled for €25 per week on a €925,000 award is a joke. TV licence evaders are jailed for non payment of €162 !

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    Quote Originally Posted by cricket View Post
    There would appear not have been any judgements against him when he got the parking discs contract. However, was any check done on the resources needed to carry out the work ?
    The High Court claim being settled for €25 per week on a €925,000 award is a joke. TV licence evaders are jailed for non payment of €162 !
    And I assume accepting the guilty plea “to save the State considerable expense” also meant that no witnesses needed to be called to open Court to ‘explore’ how he got such a lucrative gig?

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    Cork City Council voted on their annual budget tonight; should a loss of 1 million plus to the taxpayer through fraud be listed in the figures?

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    Nothing to do with the fraud mentioned above, but is there any checks and balances in the tendering process at LA level? Did someone 'forget' that vans were on hire for 5 years?
    Any council would welcome 6 million in todays climate!

    Council in breach of rules with

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