<p>
	The Dail&#39;s spending watchdog has been formally refused permission to compel two former Rehab Group chief executives to give evidence.</p>
<p>
	Angela Kerins and Frank Flannery will avoid an appearance at the Public Accounts Committee after the Dail&#39;s rules body decided the PAC would be exceeding its powers.</p>
<p>
	The decision was made by the rules body, the Committee on Procedure and Privilege (CPP), after it received senior counsel advice last night. It represents a major setback for the PAC&#39;s investigation of Rehab.</p>
<p>
	However, the CPP approved an application from the PAC to get compellability powers which would allow it to quiz a former SIPTU official, Matt Merrigan, and two other officials.</p>
<p>
	TDs wish to quiz Mr Merrigan over his role in setting up a multi-million euro &quot;slush fund&quot; account that was used to fund foreign trips.</p>
<p>
	The CPP was the only body which had the power to grant compellability powers to the PAC. It is expected to inform the spending watchdog of its formal decision shortly.</p>
<p>
	Debate</p>
<p>
	The crucial issue which settled the debate was the legal interpretation of the PAC&#39;s remit.</p>
<p>
	Technically, it is only supposed to examine bodies audited by the Comptroller and Auditor General.</p>
<p>
	Although Rehab receives over &euro;80m a year in state funding, it is not audited by the C&amp;AG.</p>
<p>
	In a letter to the PAC last night, the CPP said the spending watchdog would be acting &quot;ultra vires&quot; &ndash; or in excess of its powers &ndash; by seeking to compel Mr Flannery and Ms Kerins.</p>
<p>
	This rules out the prospect of compelling the former Rehab bosses, who are unwilling to attend. However, as the C&amp;AG has examined the so-called SIPTU slush fund, this paves the way for Mr Merrigan to be compelled.</p>
<p>
	The CPP said another SIPTU official, Jack Kelly, and a former Department of Health employee, Alan Smith, could also be compelled.</p>
<p>
	&quot;Given the existence of the C&amp;AG special report on this issue, the CPP is satisfied that this matter is within the terms of reference of the PAC,&quot; the decision letter said.</p>
<p>
	Both Ms Kerins and Mr Flannery had accused the PAC of &quot;a gross abuse&quot; of its position and of knowingly acting outside its remit.</p>
<p>
	Lawyers acting for Ms Kerins also claimed the committee was &quot;compromised&quot; and &quot;biased&quot; against her.</p>
<p>
	<a href="http://www.independent.ie/irish-news/politics/exrehab-bosses-cant-be-forced-to-appear-before-pac-30438300.html">http://www.independent.ie/irish-news/politics/exrehab-bosses-cant-be-forced-to-appear-before-pac-30438300.html</a></p>
