Government Faces Scrutiny Over €1.1 Billion IPAS Overcharges

URGENT UPDATE: The Irish government is under intense scrutiny following revelations of significant overcharging by private operators in the International Protection Applicant Service (IPAS). During Leaders’ Questions today, Sinn Féin leader Mary Lou McDonald accused these operators of billing the state millions for unnecessary VAT, unused rooms, and unprovided beds.

The shocking allegations stem from the latest annual report by the Office of the Comptroller and Auditor General, which revealed that the government spent a staggering €1.1 billion on IPAS accommodation in 2024. McDonald emphasized the report’s findings, stating, “The damning report points to a lack of due diligence and payment control in the awarding of IPAS contracts, on which the Government will spend €1.2 billion this year.”

The situation is exacerbated by alarming transparency issues: contracts were missing in over one-third of cases examined, and only 5% of properties provided proof of ownership or valid leases. McDonald highlighted that one IPAS provider pocketed €4.6 million in 2024, a stark contrast to just €2,092 in profit three years prior. “This is cowboy stuff, and the big fear is that this is just the tip of the iceberg,” she warned.

The Minister for Justice, Jim O’Callaghan TD, acknowledged the mounting pressure from a surge in asylum seekers, which escalated from 7,683 in 2019 to 32,700 last year, excluding arrivals from Ukraine. O’Callaghan noted, “The pressures on the Government at the time resulted in contracts being entered into that we wouldn’t enter into now.”

In response to the fallout, several contracts with underperforming suppliers have been terminated, and ongoing negotiations are projected to save the state over €50 million.

As calls for accountability grow louder, this developing story raises significant questions about government oversight and fiscal responsibility. Stakeholders are urged to monitor updates as the situation unfolds.

For ongoing coverage and the latest updates, stay tuned.