Bord Bia breaches State spending rules for second year running

Bord Bia breached State spending rules for the second year in a row in 2025, as €1.2 million of expenditure was carried out without following proper tendering processes.A statement by Bord Bia chair Larry Murrin in the agency’s latest annual report for 2025 said the level of non-compliant spending in 2025 was an improvement on the previous year.Last year, the agency that markets the Irish food and drink industries globally disclosed in its annual report for 2024 that it spent €2.6 million on services that should have been procured through a competitive tendering procedure.Bord Bia’s annual report for 2025 has now disclosed a further €1.2 million of spending was “incurred without the operation of a competitive tendering procedure in accordance with procurement guidelines” last year.READ MOREA report by the Comptroller and Auditor General, included in the annual report, said Bord Bia’s expenditure showed “a material level of noncompliance with procurement rules” in 2025.A statement in the annual report, signed by Murrin, said the €1.2 million of non-compliant spending was identified following a “compliance review”.[ Bord Bia review finds chairman gives ‘clear leadership’ in wake of Brazil beef protestsOpens in new window ]“This compares with expenditure of over €2.6 million identified as not fully compliant in 2024, representing a year-on-year reduction of over 50 per cent, and reflecting improved adherence to procurement policies following the strengthening of controls during 2025,” Murrin’s statement said.Murrin added that spending controls are being strengthened to avoid repeated instances of non-compliant spending.“During 2025, additional control activities were implemented through targeted follow-up training and procurement seminars delivered to staff across Bord Bia, both domestically and internationally, who have responsibility for managing budgets and raising purchase orders.”Bord Bia’s annual report for 2024 showed a breakdown of the non-compliant spending, with €1.69 million linked to market services under one contract and another €680,000 linked to other marketing services procured outside proper procedures.Some €700,000 of non-compliant spending related to legal services, €110,000 to ICT services and €90,000 for HR services. The agency’s annual report provided no breakdown of the €1.2 million worth of non-compliant expenditure in 2025.When contacted by The Irish Times, Bord Bia said: “All of the expenditure was authorised and incurred for legitimate business purposes.“These ‘non-compliant’ cases arose where, for example, contracts expired before new procurement arrangements were completed, individual purchases by different teams cumulatively exceeded the relevant tender threshold, or required documentation was not fully completed at the time of the expenditure. “Bord Bia takes its public procurement obligations seriously and has addressed each case through contract updates and the completion of required documentation. It has also strengthened supplier-spend monitoring, contract management and staff guidance to improve compliance across the organisation.”Further details in the report showed Bord Bia’s consultancy costs more than doubled from €850,000 to €1.9 million in 2025. The rise was linked to costs for “business improvement” rising from €214,000 to €673,000, while costs linked to “new system development” rose from €100,000 to €733,000.During 2025, staff headcount rose to 183, while total remuneration costs increased from €20.6 million to €21.5 million. Pay to Jim O’Toole, who has been chief executive of Bord Bia since 2022, rose from €191,984 to €198,282 in the year. Other employees at the agency were paid between €60,000 and €149,000. The annual report also referenced completion of a Department of Agriculture-commissioned governance review, which began in April 2026 and was published in June.Minister for Agriculture Martin Heydon commissioned the independent board effectiveness review in March as part of an arrangement to end a sit-in protest by Irish Farmers’ Association members at Bord Bia’s headquarters.Murrin was called on to resign as Bord Bia chairman over the importation of Brazilian beef by his company Dawn Farms. The review found Murrin was providing “clear leadership” at the State agency.