RTÉ secret payment scandal facts for kids
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The RTÉ secret payment scandal started in June 2023. It was about Ireland's main public TV and radio company, RTÉ. People found out that RTÉ had hidden payments for a top presenter.
Later, more secrets came out. These included money spent on parties for clients. There were also questions about how many managers RTÉ had and how much they were paid. Even how some bosses left the company became a big topic.
On June 22, 2023, RTÉ said it had paid an extra €345,000 to TV and radio host Ryan Tubridy. This was between 2017 and 2022. His pay was already the highest at RTÉ.
Noel Kelly, a famous agent, helped arrange these extra payments. He played a key role in getting the money to Tubridy. These extra payments meant Tubridy earned over €500,000 each year. But RTÉ publicly said he earned less.
From 2020 to 2022, the extra money was paid using a special "barter account" in the UK. This account worked with a company called Astus.
The head of RTÉ, Dee Forbes, was asked to quit. She was later suspended and then resigned on June 26, 2023. Leaders from RTÉ had to explain things to government committees.
At a meeting on June 29, 2023, more details came out. RTÉ had used the barter account for other things. This included €111,000 for trips to Japan. They also spent €260,000 on a UEFA Champions League trip. Later, two more barter account companies were found: Active and Miroma.
Many Irish people watched RTÉ News to follow the story. This was a bit funny, as the news was about RTÉ's own problems!
Contents
Why the Scandal Happened
RTÉ's Money Troubles
RTÉ had money problems for a while. In 2018, a review found that some workers were not properly employed. This meant they missed out on benefits like maternity leave or pensions.
In late 2019, the Irish government and RTÉ talked about RTÉ's money issues. The government agreed to give RTÉ an extra €9 million a year. But RTÉ still had money problems.
RTÉ stopped pay rises for its regular workers in March 2020. Later, a court said this was wrong. In October 2020, RTÉ's boss, Dee Forbes, said more job cuts were coming. RTÉ needed to save €60 million between 2020 and 2023.
In July 2022, a government committee said RTÉ relied too much on state money. Also, fewer people were paying their TV licence fees.
The Toy Show The Musical Problem
In January 2023, an RTÉ director said the company needed more public money. He also mentioned that Toy Show The Musical might return. This musical had lost a lot of money.
What Happened When: A Timeline
Early Discoveries
On February 15, 2023, RTÉ shared its top earners for 2021. They wrongly said Tubridy earned €440,000. This made other reports also state wrong figures.
On June 22, RTÉ admitted Tubridy got two extra payments of €75,000 each in 2022. These payments were for 2021 and 2022. They were hidden in a "Barter Account" for €115,380 each.
The head of the RTÉ Board, Siún Ní Raghallaigh, said Tubridy would not be on air the next day.
Dee Forbes Resigns
The next day, the RTÉ Board said Dee Forbes was suspended on June 21. But Ní Raghallaigh had not said this the night before.
On June 25, news reports said RTÉ told Tubridy's agent, Noel Kelly, to send bills to a British company called Astus. These bills were for "consultancy services." Astus then paid them for RTÉ.
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The next morning, Dee Forbes announced she was quitting as RTÉ Director General. She also left her role on the board of GAAGO, a sports channel she helped create. She later said she was too unwell to attend committee meetings.
More Details Emerge
On June 27, RTÉ's acting boss, Adrian Lynch, released a report. It said only Dee Forbes knew the public figures for Tubridy were wrong. The report also said there was "no illegality." It stated that payments were part of an "agreed contract."
On June 28, RTÉ leaders met with a government committee. Siún Ní Raghallaigh said she had asked Dee Forbes to resign. But Forbes had not accepted at first. It was also found that Tubridy was due a €120,000 "loyalty bonus." This was somehow used against his earnings from 2017 to 2019.
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On June 29, RTÉ executives met another committee. RTÉ's Chief Financial Officer, Richard Collins, admitted his salary was €200,000 plus a €25,000 car allowance. He also said "maybe the taxpayer was defrauded."
More uses of the barter account were shared. This included €111,000 for trips to Japan. Also, €138,000 for rugby tickets and €26,000 for one football match. The RTÉ Board chair called the €340,000 extra payments to Tubridy an "act designed to deceive." A former board chair called the barter account a "slush fund."
Center Parcs, a sponsor of The Ryan Tubridy Show, said it would not renew its deal. They might even pull out early.
New Discoveries and Changes
On July 4, more barter accounts were found with Active and Miroma. RTÉ had spent €1.6 million on client entertainment over 10 years. This included money for alcohol, jerseys, golf, and concert tickets. They even spent nearly €5,000 on flip-flops! Documents also showed Toy Show The Musical lost €2.2 million.
The next day, RTÉ's Gaelic Games reporter, Marty Morrissey, apologized. He had used a car loaned by Renault for five years.
Before Kevin Bakhurst became the new Director General, Rory Coveney resigned from RTÉ. Bakhurst then changed the leadership team. Geraldine O'Leary, RTÉ's Commercial Director, also retired early.
On July 11, Ryan Tubridy and his agent Noel Kelly spoke to the committees. Tubridy said the past three weeks were "tortuous" and "destructive." He felt his name was "sullied." He blamed RTÉ for creating "confusion" about his pay.
On August 17, it was confirmed Tubridy would not return to RTÉ. Talks with Kevin Bakhurst had failed.
How People Reacted
Staff and Public Response
On June 23, journalists at RTÉ held a meeting. Soon after, other presenters like Claire Byrne and Joe Duffy confirmed their salaries were correct.
On June 27, about 200 RTÉ journalists protested outside headquarters. They were hurt and angry that a few managers had damaged the company. Protests also happened at RTÉ's offices in other cities.
On June 29, the Irish Prime Minister, Leo Varadkar, spoke about the "unusual, clandestine payments." He wondered if some payments were "on the wrong side of the law."
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On July 11, RTÉ presenter Dave Fanning, who also had Noel Kelly as an agent, made comments about the investigations. Two days later, the new RTÉ Director General, Kevin Bakhurst, said Fanning's remarks were "not appropriate."
About 100 RTÉ staff protested again on July 12. They wanted the government to properly fund public broadcasting.
The Grant Thornton Report and "The Talent"
The Grant Thornton report, released on June 26, 2023, called Ryan Tubridy "The Talent." Tubridy often talked about his pay cuts. In 2019, he said he had taken a big pay cut before. But in 2009, he had refused a pay cut when others accepted one.
The RTÉ Board chair, Siún Ní Raghallaigh, spoke about the term "talent." She said it creates a "them and us" culture at RTÉ. She felt it made some people seem more important than others. She suggested getting rid of the term.
Noel Kelly, "The Talent's Agent"
Noel Kelly is called "The Talent's Agent" in the report. He runs NK Management. Kelly has been a controversial figure. In 2011, he said some of his clients might not afford a second car if RTÉ cut their wages.
Ryan Tubridy has called Kelly his Consigliere (a trusted advisor). Some people in broadcasting felt Kelly had harmed Tubridy's career. They believed Kelly was "too smart."
The Irish Times reported that some see Kelly as very powerful. He is thought to share negative stories about other presenters. At the time, Noel Kelly had 46 famous clients. These included RTÉ's Tubridy, Joe Duffy, and Claire Byrne. He also had clients in the UK.
Management Pay and Exit Packages
Documents showed how much RTÉ's highest-paid employees earned. The top 100 earners all had basic salaries over €116,000. Most of these were managers.
The Director General earned €225,000 in 2021. This included a car allowance and pension contributions, totaling €306,000. The Chief Financial Officer earned about €200,000 plus a car allowance.
RTÉ has over 1,800 staff, plus contractors. In 2022, 119 employees earned over €100,000.
It was also found that RTÉ paid over €2.3 million to some people leaving the company. One payment was rumored to be around €400,000. The new Director General said he would review these payments.
