Dublin City Council's chief will not have to personally clarify remarks he made about a forged signature leading to the founding of a successful company after councillors voted against it.
The "extraordinary" remarks were made at an event celebrating 50 years of Irish membership in the EU last month. The Minister of State for Local Government had called on Mr Keegan to "explain" the comments.
The remarks suggest the executive of the council had decided against the proposal to form the agency before a "very enthusiastic" former council staff member "forged the city manager's signature". Mr Keegan said: "There was a funny story about the CODEMA.
Read more: Minister's spokesman calls on Council boss to explain forged signature comments
"I was on the management team [DCC's executive] back in the mid-90s. A proposal came up from a very enthusiastic staff member."
Mr Keegan said that the management team decided that this was not the time, but claimed: "The official concerned forged the city manager's signature on the application and it was successful.
"We ended up without that official but with an energy management agency. I was somewhat conflicted because that was a great decision."
Mr Keegan indicated the official was let go from their role. The crowd gathered in the Mansion House's Oak Room, which included councillors, laughed at the anecdote as Mr Keegan also chuckled.
CODEMA or Dublin's Energy Agency provides energy and climate mitigation services to the four local authorities in Dublin. It was established in 1997.
Independent Councillor Mannix Flynn had put forward a motion to the Protocol Committee calling on Mr Keegan to clarify the remarks. The motion was rejected at Thursday morning's meeting after an official offered a clarification.
Senior executive officer Ruth Dowling told a meeting that the remarks were an "aside". She said: "I was speaking to the Chief Executive yesterday and he was saying his remarks were an aside as part of a speech in the Oak Room at an EU event.
"It was an anecdote and what he was referring to was something that occurred over 26 years ago. My understanding is that both parties involved are now deceased."
Four councillors accepted the clarification and the motion was defeated. Fine Gael Councillor Naoise O Muiri said: "I am happy with Ruth's clarification."
Social Democrat Cat O'Driscoll said: "I don't think this needs to go any further so I won't support the motion."
Labour Councillor Alison Gilliland said: "I don't support the motion, I accept the explanation there. I was at the meeting and I took it at face value as an anecdote."
Labour's Dermot Lacey said: "I think we have got an answer as to what happened. We have got an indication of the circumstances. I think it has been responded to. If I thought there was any value for Dublin city in pursuing this any further, I would support it."
Cllr Flynn said it was a "sad day" for democracy and governance in DCC. He said: "This is all second hand information and what we need here is the CEO to come in himself and clarify his remarks.
"Here we have clear remarks into the public domain in relation to a document being forged and the person who made those remarks is not being asked to come to the council. I think it is a sad day for democracy and it certainly is a sad day for governance in Dublin City Council."
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