Ireland's An Post accused of misleading Govt

Beleaguered State postal service An Post has come under fire again, this time from the Government which has accused it of providing “seriously inaccurate” information about its worsening financial situation.

In a scathing letter sent by Communications Minister Dermot Ahern to An Post chairwoman Margaret McGinley, concern is expressed at the jump in the company’s losses at a time when its finances were supposedly under control.

According to the Irish Times, details of the letter emerged as An Post prepared to disclose to its staff today that it expects to lose more than €30m this year, despite telling the Government last January it would make a €1m profit.

The losses expected for this year will be almost double last year’s deficit of almost €18m and Ahern has reportedly given An Post’s board four weeks to produce a report “outlining how this state of affairs was allowed to occur”.

He has asked directors for detailed information “on how the board exercised its oversight function in relation to the financial well-being of the company”.

News of the expected losses follows the release of records that show An Post told the Government last December that there was no need for a rescue plan.

The company said in a confidential report released under the Freedom of Information Act that it would return to profits this year.

The report was produced after the Department of Communications warned that the outlook for An Post would be bleak if the company did not reduce costs radically and secure an increase in postage rates.