Taxpayer loss after asylum accommodation deals ended
A report from Ireland's Comptroller and Auditor General reveals that the state incurred significant financial losses due to the termination of pre-contract agreements for asylum seeker accommodation. The Department of Justice had previously entered into these deals to secure large-scale housing, but later curtailed the portfolio, leading to legal settlements.
Why it matters
The report highlights the fiscal impact of government policy shifts regarding the management of international protection applicants and the risks associated with state property contracts.
There has been a "substantial loss" to taxpayers, as a result of the termination of agreements with a number of potential asylum seeker accommodation providers.
Specific figures in relation to the losses are not contained in today's report from the Comptroller and Auditor General, but there are indications that they could amount to several million euro.
The C&AG says financial settlements to three parties form a "material but undisclosed part" of €35 million in accrued expenses by the Department of Justice last year, in respect of accommodation for international protection applicants.
A further two prospective providers are taking legal action over the termination of agreements by the State.
Chapter 14 of the report examines the cancellation of the pre-contract deals, after the Department decided to curtail the size of the international protection property portfolio and reduce it over time last year.
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