Three sports clubs that received grants under the sports capital programme are being investigated for alleged irregularities, the Department of Arts, Sport and Tourism has confirmed.

However, a spokesman for sports minister Martin Cullen said it "has not sought a refund from grantees on the basis of alleged irregularities".

Last month, the department's secretary general, Con Haugh, told a public accounts committee that, while no refunds had been sought so far, "the department would not rule out doing so in appropriate circumstances".

"There are a small number of cases being investigated by the department where such an eventuality might arise," warned Haugh.

The sports capital programme, funded by the national lottery and administered by the department, gives grants to hundreds of sports clubs ranging from a few thousand euro to over €1m. Clubs themselves must come up with 30% of the total funding.

Last year, almost €50m was disbursed to almost 1,000 clubs and this year the total grant allocation has increased to €56m.

The department also confirmed €53,506 was paid back this year by a sports club which sold a premises. But the department stressed this has nothing to do with the investigation into the alleged irregularities. If a club makes a commercial killing by selling its premises, it is standard policy for the department to seek the return of a grant.

In line with the investigation, the department has started to crack down on clubs that fail to take up their grant allocation within the 18 months allowed.