RPA battle with ex-Luas boss to escalate: ThePost.ie


TCH Archives > Sunday Business Post > 2003/03/02 > RPA battle with ex-Luas boss to escalate

RPA battle with ex-Luas boss to escalate
Sunday, March 02, 2003
By Post Reporter
The Railway Procurement Agency's (RPA) embarrassing legal battle with former Luas project chief Donal Mangan is set to escalate.

After a long delay, the RPA is understood to have filed a defence last week in the High Court breach of contract action taken by Mangan.

A settlement of the case does not seem to be in sight.

Meanwhile, the RPA is coming under fire due to serious cost overruns and time delays on the Luas project, which it is overseeing.

The RPAwas established by the former minister for public enterprise, Mary O'Rourke, in December 2001 under the chair manship of Padraic White.

It took over the Luas project, which at the time was scheduled to be delivered by September 2003 at a cost of €670 million. One of the first decisions taken by the RPA board was to select investment banker Frank Allen as chief executive.

Mangan, who had headed the project for seven years as director of the Light Rail Division of CIE, was passed over. Mangan has sued the RPA and CIE arising from the agency's failure to appoint him. He also claimed the RPA was in breach of its obligations under the EU'sTransfer of Undertakings Directive.

Recently, this newspaper revealed that the estimated cost of the Luas had spiralled to over €800 million. Some observers believe it may reach €1 billion by the time work is completed. Substantial delays will push delivery of the project well beyond planned deadlines.

The mounting cost of the Luas project and delays in delivery are a source of growing concern to the government. Problems with the project are also likely to attract the attention of the EU, which has invested heavily in the scheme. White, Allen and their colleagues are coming under pressure to defend their actions.

In its defence to Mangan's action, it is understood that the RPA claims he remains an employee of CIE or, in the alternative, that Mangan has repudiated his employment with the RPA.

The RPA failed to file a defence to Mangan's claim by the end of last November. Mangan applied to the High Court for judgment in default of defence.

The matter came before the court on February 10, at which time the RPA was granted a two-week extension in order to file its defence.

Now that it has done so, a controversial public airing of sensitive issues in court appears inevitable. Meanwhile, Mangan has been attending his office at the RPA throughout the period of his dispute with the authority.

While not doing any work, he has been receiving his full salary. The RPA denies Mangan is one of its members.