Mayo County Council accused of holding €15 million in a 'slush fund'

MAYO County Council have been accused of transferring up to €15 million into a 'slush fund' and withholding money to be spent on projects around the county.

Members of Mayo County Council expressed their frustration and anger when they were informed that up to €15 million in the annual budget had not been spent in 2024.

The matter was raised at yesterday's monthly meeting of Mayo County Council when Director of Finance, Peter Duggan delivered his Annual Financial Statement.

Fine Gael councillor Peter Flynn told the meeting that the financial statement showed a 'significant' underspend during 2024 despite being told that there is little funding for new projects.

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“From our interaction with staff and the management team you would get the feeling that Mayo County Council was on the verge of bankruptcy,” said Cllr Flynn. “But yet when you read the detail on this email we received this morning there is significant underspent and buoyancy in this county in 2024 which has significant implications for 2025 and future years.

“I don't want to hear anymore that we don't have money for projects. It is clear that we have the best part of €15 million plus that we have transferred into a little kitty or slush fund if you want to call it that. It is all great and fine as long as we know it will be spent on projects that matter to us and will make a difference to this county,” he said.

Breakdown

HE proposed that councillors defer discussing the Annual Financial Statement until they get a breakdown on all key capital projects throughout the county and a timeline for when they will be delivered and how they will be funded.

His motion was supported by the rest of the chamber with a number expressing concern that the money was not spent despite a housing crisis in the county.

Independent councillor John O'Malley expressed anger that the four Westport councillors were asked to contribute €17,000 of their Notice of Motion allocation for a car park project in Westport. He proposed they withdraw it and the funding come from the €15 million instead.

Mr Duggan defended the surplus stating that the council were obliged to hold some funds in reserve while adding they need matching funding to progress projects around the county.

“We have a significant number of projects which we have to start getting underway and start providing funding for,” he said while explaining that they needed up to €5 million in matching funding for the proposed sports campus in Castlebar.

“We have to set aside what we can to put ourselves into a position to fund these projects going forward. We cannot continue to borrow because it is not feasible,” he added.