Waterford Council is considering terminating its multi-million euro contract with the Waterford Area Partnership.
Chief executive Michael Walsh has confirmed to councillors that it is now taking legal advice on what options are available to secure services and jobs overseen by the company.
A recent audit recommended winding up the Partnership - which employs 47 people directly - however a new board has been trying to steady the organisation in recent weeks. Gardaí and Revenue are currently investigating the company.
In his letter to the WAP board, Mr Walsh said there “has not been sufficient progress” by the board to address the findings of a number of reports into the company, or in attempts to complete its already delayed 2019 accounts.
The letter comes following correspondence last week, where Mr Walsh suggested that any directors who sat on the board prior to this year should step down.
Latest letter
In Wednesday's letter, he added that the council will not pay any amount of the Social Inclusion and Community Activation Programme (SICAP) in advance as the financial position of the company remains unclear. The contract is worth €1.1m annually over five years.
The council has been examining the options available to ensure the continuation of the SICAP services. Mr Walsh wrote:
"We have also taken legal advice on possible options to secure the services and sustain the jobs of staff. I should also add that we have also taken legal advice on the options available to the LCDC and the Council in the event that the SICAP contract has to be terminated."
Speaking to WLR, Sinn Féin’s Jim Griffin said councillors need to get involved to help preserve the jobs. He called for a briefing meeting to be held on the controversy for politicians last month, which has yet to be granted.
The council cannot allow the services and 47 jobs to collapse, Cllr Griffin added.
“I would think that all projects [need to be] completely funded and that we go forward, and that we in Waterford don’t lose another key piece of infrastructure to help communities. We just don’t need this to go belly-up.”
‘Blame game’
In his letter, council boss Michael Walsh said the Partnership is trying to lay blame at every agency for its difficulties but itself:
“With in excess of 40 staff, many of significant experience and competency, the Company is not without resources, yet there does not appear to have been a single forward movement to resolution of any of the core issues.
“Instead there seems to be only a strategy to seek to lay blame at the door of every other agency who have had no hand, act or part in the creation of the WAP difficulties.”
But Councillor Griffin said the “blame game” must stop, saying that the council must meet with the board to hammer out a deal:
“All we’re hearing now is sound bites and rumours, and we need to get a meeting with all parties and bring this to a successful conclusion.”
