In June 2025, the Mayor wrote to Minister Cummins in view of stated governance concerns he had arising from councillors serving on DAC boards at variance to state body practices and OECD and other guidance.
He specifically sought clarity on whether councillors in Limerick should serve on DAC boards, in light of Departmental preference for such, and, if that remained the position of the Department how to guard against risks which arise from such choice.
Mayor John Moran has again written to the Minister of State for Local Government and Planning in response to the Minister’s letter received by the Mayor this week regarding the governance of Designated Activity Companies (DACs) associated with Limerick City and County Council.
The Minister has confirmed his preference that, pending the development of further national guidance, that elected members be represented on DAC boards. The Mayor has acknowledged this position and is progressing to appoint councillors to DAC boards in accordance with the Code.
At the same time, the Mayor’s further response to Minister Cummins seeks once more to have the Minister’s advices on how to guard against the governance risks when elected members are appointed to act as company directors, particularly given the scale, commercial sensitivity and statutory context of DAC activity in Limerick and the unique position of Limerick with a directly elected Mayor as shareholder.
In the meantime to implement the Minister’s position, the Mayor has invited councillors to submit expressions of interest indicating on which boards they would like to serve and why.
The Mayor and each of the respective DAC board chairs in selecting board members will take into account, pending further clarity from the Department, practical implementation issues, including the management of conflicts of loyalty, the role of the shareholder, and safeguards to protect effective governance during the interim period.
The Mayor has also expressed his wish to now move forward with the establishment of a DAC Supervisory Board, which will be unique to Limerick. It will allow supervision of all the DACs in a more holistic fashion. Along with officials and independent experts, it is intended five councillors will serve on this board. The Mayor has now invited the Príomh Chomhairleoir to submit the names of those five representatives to him.
Further updates will be provided as engagement with the Department continues.