Mayo Council face huge fine following contract debacle

It has been revealed that Mayo County Council is in line to receive a fine worth up to €600,000 as the fallout from 2020 contract negotiations continues.

Four and a half years ago, as the Irish Times report, Kilkenny-based company Killaree Lighting Services saw a bid rejected by the Council for a contract estimated to be worth €4 million to €6 million depending on the length of time.

READ MORE Calls for world-famous rock band Fontaines D.C. to play in Mayo town

Killaree submitted its bid to undertake the work in August 2020.  However, two months later the company was removed from the tender process, with the contract rewarded to Claremorris-based firm Electric Skyline.

Last week in the Court of Appeal, Ms Justice Niamh Hyland judged the Council to be liable to a penalty of up to 10% of the value of the contract.  This was due to the council failing to give Killaree the chance to seek “Pre-contractual remedies” at the time.

The contract was for the maintenance and repair of public lighting both in Mayo and on behalf of five other councils.

The deal was to the value of €1.4 million for the first year, with the option of renewing the deal a maximum of six times every six months.

READ MORE: Mayo woman runs 100 miles to raise funds for cancer charity

Any fine decided upon by the courts must be paid to the state as what is referred to as a civil penalty.

Killaree’s success in the case was down to the lack of a ‘standstill letter.’  This gives unsuccessful bidders a chance to question the process that a public body undertakes to eliminate them from the process.

The lack of this letter fell foul of EU regulations according to Justice Hyland.

As of January 31 at 5pm, Mayo County Council has declined to comment.