COUGHLAN SHOULD GO; Gilmore calls for minister's head.

Byline: AINE HEGARTY

THERE were calls for Mary Coughlan to quit as Enterprise Minister yesterday after she was accused of ignoring problems at scandal-hit FAS for months.

Labour leader Eamon Gilmore said she should quit because she was made aware of problems at FAS in May 2008 but did nothing about it.

He added: "Everybody is under the impression that all of this blew up with articles about the trips to Florida and so on.

"In fact there was an earlier report going back to May 2008 done by the Comptroller and Auditor General which highlighted deficiencies in corporate governance and in the way things were going on in FAS.

"That was the stage when the Tanaiste should have acted. She didn't act until it became a big public controversy and now appears to have acted in a panic and probably acted in a way for which she did not have any legal authority.

"In this case we are seeing no accountability from ministers. I think there are now very major questions over the Tanaiste's continuation in that department." Mr Gilmore also claimed Rody Molloy got his EUR1.1million golden handshake because of his friendship with Taoiseach Brian Cowen. He added the deal "smacked of a sweetheart deal for a Government friend".

He has called on the Government to publish the guidelines on which the pay-off was made - amid claims it could be illegal.

The Tanaiste yesterday rejected the criticism that she did not act quickly enough over FAS. Ms Coughlan said she received a report on FAS on her appointment as Minister and "acted immediately" by asking the Comptroller and Auditor General to carry out a further investigation.

She added: "He awaited the Public Accounts Committee deliberations before that was commenced and on receipt of that report I acted in the provision of a new structure for FAS."

Finance Minister Brian Lenihan waded into the argument yesterday when he defended signing off on the "outrageous" EUR1.1million.

But he added: "I was briefed verbally. There was no formal file submitted to me on the matter.

"I was briefed verbally on the arrangements that had been arrived at by the Department of Enterprise. My officials indicated it was within the appropriate guidelines."

But Fianna Fail backbenchers piled pressure last night on Taoiseach Brian Cowen to carry out a reshuffle of his bungling Cabinet.

Amid growing calls for Mary Coughlan to be shifted from Enterprise to "a less demanding role", Meath East TD Thomas Byrne said: "I think loyalty encompasses that every minister is in a job that suits them."

When asked if he felt there were some in office that didn't suit them, he said: "There are some good ministers out there like Brian Lenihan and Micheal Martin."

CAPTION(S):

CLASH Coughlan, top, and Gilmore