Taoiseach Micheál Martin said claims that a contribution of €130m had been recommended by officials from the Department of Finance, when Ireland eventually contributed €141m, were not correct. In fact, the department had offered Mr Donohoe, as Finance Minister, a ‘high’ option of €159.9m and a ‘low’ option of €141m. Mr Donohoe had chosen the low option, he said.
Opposition TDs had questioned whether there was any link between Mr Donohoe’s decision on the contribution, which was finalised in April 2025, and him taking up a job with the World Bank seven months later.
The Taoiseach said negotiations had concluded in December 2024 on a new round of international development assistance by member countries.
“The World Bank developed multiple funding scenarios: low, medium high and very high,” he said, with indicative contribution ranges provided to each donor, including Ireland.
“Ireland could not pledge at the December meeting due to the general election of 29 November,” he said. The World Bank kept the pledging window open until 2025.
The Department of Finance developed a business case, which included comparisons with prior Irish contributions, and the commitments made by peer EU and OECD countries.
The options were for no contribution, to maintain the past level of €100.5m, a ‘low’ option of €141.4m, or a ‘high’ option of €158.9m.
Mr Martin said: “The midpoint recommended by officials in Department of Finance was €150m. The Minister of Finance agreed to €141.4m, classified as the low option, and the proposal then was approved by Cabinet.”
The Taoiseach pointed out that negotiations are conducted by officials in all donor countries, and Ireland’s case was handled by a senior official from the Department on behalf of the minister.
Last November, Mr Donohoe resigned as finance minister and as a TD in order to take up a position as Managing Director and Chief Knowledge Officer at the World Bank.
Sinn Féin leader Mary Lou McDonald had claimed the Government granted “way above” what the World Bank was asking for and that this “raises very serious questions” which needed clarification.
Cian O’Callaghan of the Social Democrats claimed the payment was “out of sync” with other decisions made by Mr Donohoe as minister, including “saying ‘no’ to a number of reasonable requests for funding” in the Budget.
“When did Paschal Donohoe know that he was going to be taking up that very senior position in the World Bank? Was he aware that was a possibility when he was making that decision last April? Did he make his colleagues aware that there was a potential conflict of interest here?” Mr O’Callaghan said. “These are the questions he needs to answer at the Oireachtas Finance Committee and Simon Harris should address when he makes a statement to the Dail.”
The Department of Finance said the contribution towards the World Bank fund was negotiated and developed over the course of a year, with the final pledge being made in December 2024. The contribution was based on a business case.
“The recommended course of action reflected the outcome of this process, and this action was set out in a proposal for Government by the then minister for finance to his Cabinet colleagues who endorsed the minister’s decision.”
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