By Mairead Carey

THE government is to hold an inquiry into the Monica Leech affair, which threatens the career of Transport Minister Martin Cullen.

Cullen is under intense scrutiny for awarding a Œ300,000 public relations contract to his friend and supporter Leech.

The government investigation will be headed up by the former chairman of the Revenue Commissioners Dermot Quigley.

It is the second inquiry into the affair. A separate investigation is being carried out by the Standards in Public Office Commission.

Cullen granted Leech a temporary six month contract when he became minister for the environment in 2002, just a month after being appointed to the ministerial position.

At the time, Leech had not properly incorporated her own PR company, and another PR company was employed by the department.

Later Leech, who was a fundraiser for the minister in his home constituency of Waterford, succeeded in holding onto the contract when it was opened up to competing bids.

So far this year she had earned Œ127,775 for a three-day week —more per day than Taoiseach Bertie Ahern.

The government inquiry is expected to be complete within a month, but there is growing pressure on the minister to resign from office.

The Sunday Tribune editorial writer summed it up this weekend when he said that resignation was now the only decent option open to Cullen.

“Cullen’s decision to award her such enormous contracts in such an unregulated manner is an example of the worst Fianna Fail cronyism, of the kind which the party tells us has been long since eliminated,” the editorial stated.

The story originally hit the headlines when it was suggested that Cullen’s relationship with Leech, a married mother of two, was more than friendly.

Cullen, who is separated, came out and strongly rejected the suggestion. However he went on to claim that the fees paid to her were appropriate for a company “of that size,” when she had few people working for her and her company was hardly formed when he took her on.

Leech had very little experience in the PR business. She had worked in sales for a Waterford radio station and as a sales manager for Jury’s Hotel before landing a job as chief executive of Waterford Tourism.

In December 2001 Cullen, who was then minister of state at the Office of Public Works, appointed her as a project coordinator, on behalf of the OPW. It was not until then that she set up her own company, Monica Leech Communications.

In July 2002, three weeks after Cullen had been appointed minister for the environment, Leech was appointed to that department as his “communications specialist.” She was paid Œ800 a day.

Last week Ahern conceded in the Dail (Parliament) that the issue “won’t go away,” and bowed to calls from Labor Party leader Pat Rabbitte to set up an independent inquiry into the affair.