C&AG reports substantial taxpayer loss from cancelled asylum seeker contracts

The Comptroller and Auditor General (C&AG) has found that the cancellation of pre‑contract agreements for asylum‑seeker accommodation resulted in a “substantial” loss to the taxpayer.

The Department of Children entered into pre‑contract agreements with 15 potential providers from May 2024 to prepare premises for housing asylum seekers. The C&AG said these agreements created significant contingent liabilities for the Exchequer that should have been formally disclosed in 2024 and required sign‑off from the Department of Public Expenditure.

Although expressions of interest were sought in April 2024, the 15 properties did not emerge from that process. After a new government was formed in January 2025, a decision in mid‑2025 was taken not to proceed with most of the pre‑contracts. Five providers launched legal cases against the Department of Justice; three were settled after mediation, with payments made in 2026 that were “significantly less” than the estimated contract values of over €100 million.

The C&AG noted that payments made for terminating the agreements yielded no value and represent a substantial loss to taxpayers. Ongoing legal proceedings continue in two cases expected to be heard in the Commercial Court.

In a separate finding, the C&AG highlighted the lack of a formal agreement between the Departments of Justice and Social Protection on the daily expenses allowance (DEA) scheme, leading to unclear entitlements. Approximately 15,000 adults in IPAS accommodation were not receiving the DEA, and the report estimated that foregone contributions could amount to €1.17 million annually.

Source: Irish Examiner. Photo: Ketut Subiyanto / Pexels.