PRIVATE OPERATORS WHO were awarded contracts to provide accommodation in the International Protection Applicant Service (IPAS) overcharged the government by millions, the Dáil heard today.

During Leaders’ Questions, Sinn Féin leader Mary Lou McDonald said private operators charged the government unnecessary VAT and costs of beds that had not been provided.

McDonald’s accusations were based on the annual report from the body that examines public spending and tax collection, the Office of the Comptroller and Auditor General.

The report showed that the government spent €1.1 billion on IPAS accomodation and charges in 2024.

“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,” she said.

She said signed contracts for agreements couldn’t be found in more than a third of the cases examined and proof of ownership of the properties or a copy of leases was provided in only 5% of the properties examined.

McDonald said one IPAS provider paid themselves €4.6m in 2024 when only three years earlier, that same company made a profit of €2,092.

“This is cowboy stuff and the big fear is that this is just the tip of the iceberg,” she said.

System pressures

Minister for Justice Jim O’Callaghan TD said the surge in the number of asylum seekers accommodated in Ireland in recent years had put pressure on the system.

He said the number had jumped from 7,683 in 2019 to 32,700 last year, excluding those who have arrived from Ukraine.

O’Callaghan said: “The pressures on the Government at the time resulted in contracts being entered into that we wouldn’t enter into now”.

He also said a number of contracts had been terminated with suppliers who had provided inadequate services, and the 100 other contracts have been renegotiated to save the state over €50m.

With additional reporting from PA.