Minister Catherine Martin has branded RTÉ’s second Grand Thornton report “deeply concerning”.
On Wednesday morning, the RTÉ board published phase two of the second report by Grant Thornton – commissioned by the Audit and Risk Committee to examine issues surrounding the public disclosure of earnings by Ryan Tubridy.
The Report confirms that 2017-2019 earning figures for the former Late Late Show host were publicly understated due to adjustments made by RTÉ’s financial department.
The Report also confirms that the Board of RTÉ was correct in restating Ryan’s publicly disclosed earnings for the period between 2017 and 2019.
The Report makes clear that neither Ryan nor NK Management had any involvement in the adjustments for the period 2017 to 2019.
The Report confirms that while the earnings were publicly understated, there was no impact on RTÉ’s financial statements as a result of these adjustments.
The Report suggests a hypothesis that on the balance of probabilities adjustments were made for the years 2017, 2018 and 2019 in order to allow for “revised earnings” below a figure of €500,000 in each year.
The Report highlights poor governance including significant deficiencies in internal management controls, failures in the finance function, and a lack of communication from the Executive to the Board.
Read the full report here.
After the report was published by RTÉ this morning, Minister Martin said: “I welcome the publication by RTÉ of the report by Grant Thornton into the understatement by RTÉ of the fees paid to presenter Ryan Tubridy for the years 2017 to 2019.
“The report highlights further lapses in governance and failure of proper internal controls and processes within RTÉ, which are deeply concerning.”
“I have spoken to the Chair and stressed the need for RTÉ to act with urgency to address these lapses and ensure that robust processes are put in place without delay.
“This is essential to restore the trust and confidence which is expected of a public service broadcaster. It is also of key importance that RTÉ co-operates fully with the Oireachtas Committees which have been examining these matters.
“The Chair has committed to a programme of reforms within RTÉ and in addition, the Expert Advisory Committees which I established last month will continue with their important work,” she continued.
“A copy of this Grant Thornton report will be provided to the Expert Advisory Committee on Governance and Culture so that they may consider its findings as part of their examination of the wider governance structures and culture within RTÉ, and bring recommendations to ensure best practice is adopted.”
“My Department has also appointed Crowe Advisory Ireland for the provision of professional services to support each of the Expert Advisory Committees. My officials continue to also support the work of the Committees,” her statement concluded.
Earlier today, the Chair of RTÉ, Siún Nà Raghallaigh, stated: “Regrettably this Report confirms our view of the siloed management culture that has prevailed in RTÉ and supports the decision by the Board to initiate an ongoing programme of corrective action.”
“The Report paints a picture of poor internal communication and weak processes.”
“The Report identifies specific dates whereby errors could have been corrected but were not and key documents that could have been effectively interrogated but were not.”
Grant Thornton 2 is here: https://t.co/o9u8C5RUxB
— Richard Chambers (@newschambers) August 16, 2023
“It is also clear from the Report that the then Executive did not properly engage with the Board on these matters, nor was relevant information provided to the Board by the Executive or by the auditors.”
“We will be taking on board the issues raised by the Report and will be engaging with RTÉ’s auditors, Deloitte, to discuss the contents of same.”
“Steps have been taken to ensure there can be no repeat of these failures. Working with Director General Kevin Bakhurst, the Board of RTÉ remains committed to an ongoing programme of reform and recovery for the organisation.”
“I hope that the publication of this Report represents an important staging point in RTÉ’s rebuilding of trust with the public and stakeholders,” she added.
RTÉ was plunged into chaos when it was revealed that Ryan’s earnings were publicly understated by €345,000 over the last six years.
The issue was identified during a routine audit of RTÉ’s 2022 accounts, prompting an independent review of the matter.
The RTÉ Board issued an apology over the error, and later Ryan also apologised for not questioning RTÉ over his published earnings.
The scandal resulted in the suspension of RTÉ’s Director General Dee Forbes, who later resigned from her role.
RTÉ’s Director of Strategy Rory Coveney also resigned from his role with immediate effect having appeared a number of times before multiple Oireachtas Committees.
On July 10, RTÉ’s new Director General Kevin Bakhurst confirmed the disbandment of the Executive Board when he took over office from Ms Forbes.
Later that day, Commercial Director Geraldine O’Leary announced her early retirement.
Ryan has not yet returned to his RTÉ Radio 1 Show, and it is not yet known if he ever will.
