Calls for criminal investigation into mica homes purchase

Donegal County Council may have withheld crucial information from its solicitors, regarding five properties it purchased for social housing in Inishowen.

The houses in An Crannla in Buncrana, were bought for €600,000 at the beginning of 2021, from developer Ronald McGrory.

Information received as a result of a Freedom of Information request on the purchase has prompted Independent councillor Frank McBrearty to call for a public inquiry and a criminal investigation into the possible misuse of taxpayers' money in the purchase.

Cllr McBrearty said: “Accountability and transparency are very much lacking in Local Government and there are many questions in this scandal around alleged corruption and misuse / waste of taxpayers' money.”

Donegal Live had previously reported Donegal County Council engaged Fastnet Analytical Limited to carry out petrographic assessment [microstructural examination] of representative samples of blocks extracted from two of the five houses.

On November 9, 2019, the Test Suite A results on 4, An Crannla, highlighted the presence of probable free mica in fines with associated freeze-thaw risk if saturated, as a potential risk.

On November 10, 2019, the Test Suite A results on 5, An Crannla, highlighted the presence of probable free mica in fines with associated freeze-thaw risk if saturated, as a potential risk. In addition, the Test Suite B: X-Ray Diffraction Analysis of this house confirmed the tested blocks contained deleterious materials, 18.4% muscovite mica and 0.6% pyrite.

Donegal County Council knew in early November 2019 the properties in An Crannla contained mica. However, this fact was not communicated to the Department of Housing and it is unclear whether or not it was communicated to the Council's solicitors.

In a letter, dated November 3, 2020, VP Mullin Solicitors, acting for Donegal County Council, referenced five points which needed clarification before sale contracts were exchanged.

The letter was contained in the file on the An Crannla purchase received by Cllr McBrearty following his Freedom of Information request.

Point Three of the VP Mullin letter stated: “Detailed Structural Survey. If you have not already done so you should also arrange for your Engineer to carry out a detailed structural survey of the property (checking for any defective blocks), invasive plant species (such as Japanese Knotweed) and check that the heating, plumbing, electrical or other systems for the property are in good working order.”

On Wednesday, November 4, 2020, an internal Donegal County Council email informed an engineer the contracts for sale had been received along with the “attached” pre-signing of contract queries.

The engineer was asked to address the queries and reply by Friday, November 6.

The email stated: “Please note we are dealing with the response to Query Number 3 [detailed structural survey] therefore you can ignore that.”

Replying to this email on November 9, 2020, in relation to Query Number 3, the engineer in question stated: “The properties have mica and will require significant remedial work. The matter has been addressed prior to my appointment as Area Housing Engineer, thus, I will not comment further.”

An email from Donegal County Council dated Tuesday, November 17, 2020, to two members of staff at VP Mullin Solicitors stated: “Please see below responses to the attached queries dated November 3, 2020.”

Referencing Query Number 3, the Detailed Structural Survey, the email made no mention of the Area Housing Engineer's reference to the fact the properties contained mica.

It said: “The Council's Engineer has carried out a visual assessment of the property, prior to the completion of the submitted Acquisition Form dated February 4, 2020.

“The engineer also asked that the Vendor carry out tests on blockwork and Fastnet Analytical Limited tested the blockwork.

The report noted that whilst the sample blocks appeared visually sound, some level of cracking was noted and there is a potential risk of further degradation with freeze / thaw action. It was also noted that the sample blocks have not deteriorated significantly.

“The Council's Engineer recently carried out a further visual assessment of the properties and found the position remains constant

“Where the Housing Engineer identifies any concerns in relation to the mechanical and electrical system of the property, the Engineer will make budgetary provision for any improvement works / repairs to be undertaken by the Council to ensure that the property is at a required standard in advance of letting.”

The Area Housing Engineer's email of Monday, November 9, 2020 was also attached to this email to VP Mullin Solicitors.

The attachment was identical to the original [above] except for the fact the Area Housing Engineer's reply to Query Number 3 was omitted and the above answer was inserted.

Donegal Live understands this reply was not written by the Area Housing Engineer who wrote the original email.

Until this purchase, the properties were leased from Mr McGrory from January 2010, by Buncrana Town Council, under the Social Housing Leasing Scheme. The lease payments amounted to just over €307,000, according to a report issued to Donegal County Councillors on July 16, 2021.

In August 2021, the Department of Housing refused to confirm whether or not it was aware the five houses contained mica at the time of the purchase.

It also refused to confirm whether or not only one house out of the five was tested for mica or whether or not it was satisfied the structural integrity of the five dwellings was in no way compromised by the presence of excessive mica.

The Department did not give this paper a requested comment on whether or not the safety of the residents in the five houses was compromised; who within Donegal County Council signed off on the purchase of the houses; or whether it was a Council engineer or an external engineer who did so.

However, in a statement to Donegal Live this week, when asked if it was aware at the time of purchase, the An Crannla houses contained mica, the Department of Housing said: “This is a matter for Donegal County Council. All local authorities operate with delegated sanction in the acquisition of second-hand properties for social housing.

“They are responsible for determining the suitability of the housing and compliance with legal and regulatory aspects.

“Local Authorities do not seek prior approval from the Department for such purchases as to do so would create a significant level of bureaucracy around acquisitions. In the case of the houses at An Crannla, Buncrana, Donegal County Council did not consult with the Department in advance.”

The Housing Acquisition Form (February 4, 2020) relating to the purchase of the An Crannla Houses, confirmed the internal roads and services within the estate are not charge of the Council. However, it did not confirm whether the Council was satisfied with the standard of services within the estate.

The form also stated that, on visual inspection, the property appeared to be in good condition, structurally and generally, and the acquisition represented good value for money.

On October 9, 2020, the Social Housing Capital Investment Unit (SHCIU) wrote to Donegal County Council. The letter stated: “The Department's Architectural and Quantity Surveyor Advisors have carried out an assessment of this submission, and based on their recommendations, SHCIU West raises no objection to the purchase of these properties with a recommended budget of €680,650 for the purchase price, fees and improvement works.

“This approval, however, is conditional on the following: [Council] undertakes due diligence and be satisfies as to the condition of each dwelling, and that the budget for renovation works adequately covers the cost of all remedial works.”

In the report furnished to Donegal County Councillors on July 16, 2021, Donegal County Council said: “There is now evidence of cracking in the properties however the properties have not degraded significantly. The properties will be added to our planned maintenance programme for Inishowen.”

Commenting on the situation, Cllr McBrearty said: “Why were the Department of Housing and Donegal County Council lawyers not informed the five houses in An Crannla were defective due to mica?

“Was the former Chief Executive of Donegal County Council made aware these homes had mica on November 26, 2019? If he was, then the Minister for Housing Darragh O'Brien (Fianna Fáil) must reconsider his appointment to the Chair of the Independent Working Group on Defective Housing.

“Donegal County Council has also denied me the files on the political representations made on these five homes. It must now hand over this vital information and I will be demanding Donegal County Council co-operates with the relevant authorities investigating everything around the sale of the five An Crannla houses.”

Donegal Live has requested a comment from Donegal County Council but, at the time of going to press, none had been forthcoming.