Minister for Justice, Defence and Equality, Mr. Alan Shatter, in an appearance before the Irish Parliament’s Joint Committee on Justice and Defence, gave the strongest indication yet that he is considering a cut in the government’s grant to the Irish Red Cross.
In response to questioning by Deputy Dara Calleary, Fianna Fail, on the ongoing misgovernance and mismanagement at the Society the Minister said “The capacity of my Department to pay to the Irish Red Cross a sum next year the same as this year-particularly with regard to its funding of its headquarters-is an issue that must be addressed. At this moment I am unable to guarantee the funding position for this year for any particular agency outside the Department”.
Given that the Irish Red Cross rejected the Minister’s written request of 16th May 2011 to address the issue of long serving board members by re-appointing the Society’s Vice Chairman for the 21st year in a row and reappointing the Treasurer to serve for his 10th year on the board it should come as no surprise that the Minister is considering cutting the grant to the Society. In speaking before the Justice and Defence Committee the Minister, in relation to board service, said the following:
“However, I have a concern that the board of the Irish Red Cross in particular-the main oversight group within the Red Cross-should have a reasonable turnover of individual members. I do not regard it as good for an organisation that an individual may fill an executive position for 15 or 20 years and that no one else has an opportunity in real terms as opposed to in theory, to fill that position. Every organisation needs to encourage its grassroots members to stand for executive positions to give them an opportunity to participate at a higher level and to be engaged in making managerial, strategic and administrative decisions”
Democracy is about choice and without choice there is no democracy. For years and years the Irish Red Cross national Vice Chairman has been returned as Vice Chairman by virtue of being the sole candidate nominated. This is reflective of, in reality as opposed to in theory to quote the Minister, a highly undemocratic and unhealthy organisation.
In relation to Minister Shatter’s letter of 16th May 2011 serious questions must be asked and answers demanded as to why this letter was not brought to the attention of Central Council members at their meeting of 28th May 2011. It is incredulous that an organisation that received a very specific written request from a senior government minister directly concerning the election and appointment of its board members would fail to bring such correspondence to the attention of those very same board members. It is even more incredulous when one considers that the Central Council meeting of the 28th May had as one of its primary agenda items the election of the 2011/12 Executive Committee, an area in which the Minister wished to see reform and change.
Not bringing the above letter to the attention of Central Council members can only be described as outright and flagrant misgovernance of the highest order. The Minister’s letter was addressed to the Society’s Chairman, Mr. David O’ Callaghan. He must explain why it was decided and by whom that only he and a select few were made aware of the letter and why its existence and contents were kept undisclosed to all other Central Council members.
The letter's existence only became known when the Minister himself made public reference to it in a speech in the Dail in June 2011. This Blog, in pursuing its objective to bring transparency and truth to the Irish Red Cross, then updated members on its existence and contents.
It can only be hoped that at the upcoming Central Council meeting due to be held later this month (still no date though!) that Central Council members will demand answers and insist they be shown the respect they deserve as the supreme deliberative authority of the Society. Failure to do so will ensure they remain consigned to irrelevance where they have allowed themselves be confined for years.
The unfortunate aspect of any government funding cut is that it will potentially jeopardise jobs at the Society’s headquarters. Already there have been redundancies during 2011 in two of the regional offices.
As with many aspects of Irish society those most impacted by negligence, incompetence, misuse of resources and financial irregularities are those most innocent of any wrongdoing. The Irish Red Cross is no exception to this. As such it is likely staff will pay the heaviest price for the wrongs of their superiors.
Should Irish Red Cross staff face redundancy in the New Year they can lay the blame squarely at the feet of their intransigent, obdurate and incompetent board. The Minister’s responsibility is to protect Irish tax payers money and if he in any way feels the competency, probity or ability of the board to safeguard those and other funds is under any question he has no option but to reduce or suspend the grant in its entirety. The Minister has clearly sent a warning shot across the bow of the Irish Red Cross in his comments to the Oireachtas Justice and Defence Committee. Based on historical evidence, however, it can be assumed with near certainty that the Irish Red Cross will ignore it. They have acted with impunity for decades and believe they can continue to do so.
The Minister, in discussing the undeclared Tipperary tsunami bank account with the Committee stated “I refer to the infamous situation within the Irish Red Cross where substantial funds were raised in one area and were retained in a bank account and not utilised”. It would appear from the Minister’s speech that even in government ministerial circles the Irish Red Cross Tipperary tsunami undeclared bank account on which the Society’s national Vice Chairman, Anthony (Tony) Lawlor, was a signatory, is considered “infamous”.
In his concluding remarks to the members of the Committee the Minister made clear his feelings when he said “It is in the interests of the Irish Red Cross that further change occurs...”. At this stage the dogs in the street know exactly what change is required. Those responsible for the financial irregularities and years of negligence and misuse of resources at the Society need to be removed. Failure to do so and the next shot from the Minister may not be across the bow but directly at it.
When you do something like this, you do increase the vulnerability for fraud, plain waste, abuse and mismanagement. We are very apprehensive about what we are seeing-Richard Skinner
On a separate matter:
The Irish Red Cross was briefly discussed again at the all party Oireachtas Public Accounts Committee in the Dail on the 20th October 2011. This followed on from the previous week (13th Oct) when financial irregularities at the Society constituted the main discussion. It is clear the Public Accounts Committee intends to continue its investigations into matters at the Irish Red Cross, something that in the public interest is to be very much welcomed.
Thursday, November 3, 2011
Saturday, October 15, 2011
Irish Red Cross to be called before parliamentary committee to face questions on use of overseas donations
NOTE: The full transcript to the Parliamentary Public Accounts Committee Hearing into the malpractice and maladministration at the Irish Red Cross is now available on the following link:
http://debates.oireachtas.ie/ACC/2011/10/13/00005.asp
On 13th October 2011 further light was shed on the practices and behaviour occurring within the Irish Red Cross. The Dail’s (Ireland’s Parliament) Public Accounts Committee (PAC) questioned intensely and robustly the Head of the Department of Defence, Michael Howard, on a range of extremely serious matters related to the Society, from mis-governance, financial irregularities and misuse of public money. Despite the Irish Government (via the Department of Defence) appointing the Irish Red Cross Chairman, one third of its 42 member Central Council and granting the Society €1m annually Mr. Howard did not appear to have the answers and seemed to imply his Department had no say or role to play in its running. The PAC members, all elected members of parliament, seemed both surprised and dissatisfied with his responses.
For much of the questioning Mr. Howard appeared distinctly uncomfortable and at times had trouble answering questions with certainty and conviction. All in all the Committee hearing left many questions unanswered and doubts further raised. Thankfully the Chair of the Committee, Mr. John Mc Guinness, a highly respected member of parliament, appeared to recognise this and agreed the Public Accounts Committee would continue to examine the matter. Mr. Mc Guinness decided the Irish Red Cross will be invited before the Committee to respond to the serious allegations made against it.
All in all October 13th 2011 was a bad day for the Department of Defence and their officials as they struggled to assuage deep rooted concerns about the Irish Red Cross. Whatever though about the Department of Defence it was another catastrophic day for the Irish Red Cross who, along with their supporters in the Department of Defence, and like other disgraced organisations in the country such as the Catholic Church, continue to defend the indefensible.
Until the membership of the Irish Red Cross finally decide to hold to account those responsible for the malaise the organisation they so dearly love and dedicate so much of their free time to will continue to be dragged through the mud. As always when leaders fail it is those they serve who suffer most but there comes a tipping point when leaders must be deposed or the reputational damage to all becomes irreparable.
Following the Public Accounts Committee hearing which are held in public and monitored closely by the media, the ‘establishment’ and the public, there was wide media coverage (TV, print and internet) and commentary. Ireland’s national broadcaster, RTE, covered the proceedings on television on Thursday evening on its program Oireachtas Report. The hearing was also covered on RTE’s web service, the Irish Times breaking news web service and in two print national newspapers on Friday 14th October (The Irish Times and the Examiner).
The links to some of the media coverage is below and the full Irish Times article is transcribed.
Lest any readers not believe that the endless woes of the Irish Red Cross are in existence for many years the Blog has also included a link to an RTE news item in 1999 reporting on a call at the time by Irish Red Cross staff for an independent investigation into their own employer in order “to protect the integrity of the organisation”.
The link to the PAC Press Release preceding the hearing into the Irish Red Cross and Noel Wardick’s letter to the PAC (which the PAC published and put into the public domain) are included again.
RTE Breaking News on 13th October 2011:
http://www.anhourago.eu/show.aspx?l=32088154&d=504
Irish Times breaking news on 13th October 2011:
http://www.irishtimes.com/newspaper/breaking/2011/1013/breaking47.html
John Mc Guinness TD (Chairman of the PAC) Blog:
http://johnmcguinness.ie/public-accounts-committee-chairman-john-mcguinness-had-said-he-will-write-to-the-irish-red-cross-with-the-transcripts-of-todays-proceedings-during-which-a-number-of-issues-were-raised
Examiner newspaper, October 14th 2011:
http://www.examiner.ie/ireland/closure-of-army-barracks-could-save-millions-and-strengthen-peacekeeping-170656.html
RTE News report in 1999 on dysfunction within Irish Red Cross and calls by staff for an independent investigation:
http://www.rte.ie/news/1999/1123/redcross.html
Link to PAC Press Release:
http://www.oireachtas.ie/parliament/mediazone/pressreleases/name-2655-en.html
Link to Noel Wardick’s letter to PAC:
http://www.oireachtas.ie/viewdoc.asp?DocID=19158&CatID=170
Irish Times newspaper article on 14th October 2011:
http://www.irishtimes.com/newspaper/ireland/2011/1014/1224305756426.html
Article transcribed in full below:
Red Cross to face questions on overseas aid donations
TIM O'BRIEN
THE IRISH Red Cross society is to be asked to respond to allegations that millions of euro, much of which was collected for overseas aid, was retained by the society in domestic accounts.
The Dáil Committee on Public Accounts agreed yesterday to invite the Red Cross to answer questions of corporate governance, including allegations that some €160,000 collected for those affected by a tsunami in Asia remained for a number of years in a bank account in Tipperary.
Committee chairman John McGuinness said similar complaints had been received, including one relating to another instance of €600,000 that had allegedly been retained following a collection in February 2010. He said the overall figure mentioned in this complaint was “millions”.
Mr McGuinness proposed the invitation at the suggestion of Eoghan Murphy TD (FG) after the committee was told by Comptroller and Auditor General John Buckley the Red Cross was largely beyond his remit.
The committee was told the Department of Defence, which provides a block grant of €1 million a year to the Irish Red Cross as well as appointing a chairman and about one-third of the Red Cross “council”, had no power to direct the organisation.
At a discussion on financial control in the Irish Red Cross Society, secretary general of the department Michael Howard told committee members: “The Government of Ireland cannot hold the Red Cross to answer.”
He said it was very important to understand no member of the Red Cross was accused of misappropriating money, and while “a number of deficiencies were exposed”, new corporate governance controls were being put in place.
Among the deficiencies was the discovery in recent years of some 49 bank accounts, one of which, in Co Tipperary, contained some €160,000, he acknowledged.
Labour TD Michael McCarthy repeatedly asked Mr Howard when his department had been made aware of the complaints, and what action it had taken. Mr Howard said he could not be certain regarding the complaints, but he had been assured by the society that when people made a donation to it, normal International Red Cross best practice was followed.
This would involve the society making a specific appeal for particular disaster relief, and all donations received for that purpose would serve that purpose. He said in times of specific appeals it was frequently the case that normal donations to the Irish Red Cross, outside the disaster relief appeal, would be received. This latter collection was considered available to the society domestically.
Simon Harris (FG) asked what was the point of having a Government appointing a chairman and about one-third of the council of the Red Cross if they were not available to report on uses of taxpayers’ money.
ENDS
http://debates.oireachtas.ie/ACC/2011/10/13/00005.asp
On 13th October 2011 further light was shed on the practices and behaviour occurring within the Irish Red Cross. The Dail’s (Ireland’s Parliament) Public Accounts Committee (PAC) questioned intensely and robustly the Head of the Department of Defence, Michael Howard, on a range of extremely serious matters related to the Society, from mis-governance, financial irregularities and misuse of public money. Despite the Irish Government (via the Department of Defence) appointing the Irish Red Cross Chairman, one third of its 42 member Central Council and granting the Society €1m annually Mr. Howard did not appear to have the answers and seemed to imply his Department had no say or role to play in its running. The PAC members, all elected members of parliament, seemed both surprised and dissatisfied with his responses.
For much of the questioning Mr. Howard appeared distinctly uncomfortable and at times had trouble answering questions with certainty and conviction. All in all the Committee hearing left many questions unanswered and doubts further raised. Thankfully the Chair of the Committee, Mr. John Mc Guinness, a highly respected member of parliament, appeared to recognise this and agreed the Public Accounts Committee would continue to examine the matter. Mr. Mc Guinness decided the Irish Red Cross will be invited before the Committee to respond to the serious allegations made against it.
All in all October 13th 2011 was a bad day for the Department of Defence and their officials as they struggled to assuage deep rooted concerns about the Irish Red Cross. Whatever though about the Department of Defence it was another catastrophic day for the Irish Red Cross who, along with their supporters in the Department of Defence, and like other disgraced organisations in the country such as the Catholic Church, continue to defend the indefensible.
Until the membership of the Irish Red Cross finally decide to hold to account those responsible for the malaise the organisation they so dearly love and dedicate so much of their free time to will continue to be dragged through the mud. As always when leaders fail it is those they serve who suffer most but there comes a tipping point when leaders must be deposed or the reputational damage to all becomes irreparable.
Following the Public Accounts Committee hearing which are held in public and monitored closely by the media, the ‘establishment’ and the public, there was wide media coverage (TV, print and internet) and commentary. Ireland’s national broadcaster, RTE, covered the proceedings on television on Thursday evening on its program Oireachtas Report. The hearing was also covered on RTE’s web service, the Irish Times breaking news web service and in two print national newspapers on Friday 14th October (The Irish Times and the Examiner).
The links to some of the media coverage is below and the full Irish Times article is transcribed.
Lest any readers not believe that the endless woes of the Irish Red Cross are in existence for many years the Blog has also included a link to an RTE news item in 1999 reporting on a call at the time by Irish Red Cross staff for an independent investigation into their own employer in order “to protect the integrity of the organisation”.
The link to the PAC Press Release preceding the hearing into the Irish Red Cross and Noel Wardick’s letter to the PAC (which the PAC published and put into the public domain) are included again.
RTE Breaking News on 13th October 2011:
http://www.anhourago.eu/show.aspx?l=32088154&d=504
Irish Times breaking news on 13th October 2011:
http://www.irishtimes.com/newspaper/breaking/2011/1013/breaking47.html
John Mc Guinness TD (Chairman of the PAC) Blog:
http://johnmcguinness.ie/public-accounts-committee-chairman-john-mcguinness-had-said-he-will-write-to-the-irish-red-cross-with-the-transcripts-of-todays-proceedings-during-which-a-number-of-issues-were-raised
Examiner newspaper, October 14th 2011:
http://www.examiner.ie/ireland/closure-of-army-barracks-could-save-millions-and-strengthen-peacekeeping-170656.html
RTE News report in 1999 on dysfunction within Irish Red Cross and calls by staff for an independent investigation:
http://www.rte.ie/news/1999/1123/redcross.html
Link to PAC Press Release:
http://www.oireachtas.ie/parliament/mediazone/pressreleases/name-2655-en.html
Link to Noel Wardick’s letter to PAC:
http://www.oireachtas.ie/viewdoc.asp?DocID=19158&CatID=170
Irish Times newspaper article on 14th October 2011:
http://www.irishtimes.com/newspaper/ireland/2011/1014/1224305756426.html
Article transcribed in full below:
Red Cross to face questions on overseas aid donations
TIM O'BRIEN
THE IRISH Red Cross society is to be asked to respond to allegations that millions of euro, much of which was collected for overseas aid, was retained by the society in domestic accounts.
The Dáil Committee on Public Accounts agreed yesterday to invite the Red Cross to answer questions of corporate governance, including allegations that some €160,000 collected for those affected by a tsunami in Asia remained for a number of years in a bank account in Tipperary.
Committee chairman John McGuinness said similar complaints had been received, including one relating to another instance of €600,000 that had allegedly been retained following a collection in February 2010. He said the overall figure mentioned in this complaint was “millions”.
Mr McGuinness proposed the invitation at the suggestion of Eoghan Murphy TD (FG) after the committee was told by Comptroller and Auditor General John Buckley the Red Cross was largely beyond his remit.
The committee was told the Department of Defence, which provides a block grant of €1 million a year to the Irish Red Cross as well as appointing a chairman and about one-third of the Red Cross “council”, had no power to direct the organisation.
At a discussion on financial control in the Irish Red Cross Society, secretary general of the department Michael Howard told committee members: “The Government of Ireland cannot hold the Red Cross to answer.”
He said it was very important to understand no member of the Red Cross was accused of misappropriating money, and while “a number of deficiencies were exposed”, new corporate governance controls were being put in place.
Among the deficiencies was the discovery in recent years of some 49 bank accounts, one of which, in Co Tipperary, contained some €160,000, he acknowledged.
Labour TD Michael McCarthy repeatedly asked Mr Howard when his department had been made aware of the complaints, and what action it had taken. Mr Howard said he could not be certain regarding the complaints, but he had been assured by the society that when people made a donation to it, normal International Red Cross best practice was followed.
This would involve the society making a specific appeal for particular disaster relief, and all donations received for that purpose would serve that purpose. He said in times of specific appeals it was frequently the case that normal donations to the Irish Red Cross, outside the disaster relief appeal, would be received. This latter collection was considered available to the society domestically.
Simon Harris (FG) asked what was the point of having a Government appointing a chairman and about one-third of the council of the Red Cross if they were not available to report on uses of taxpayers’ money.
ENDS
Wednesday, October 12, 2011
Parliament's Public Accounts Committee to examine financial control in the Irish Red Cross Society
The Blog is pleased to report that the malpractice, maladministration and financial irregularities at the Irish Red Cross are to be discussed by the Dail's (Irish Parliament) Public Accounts Committee (PAC) on 13th October 2011. This is further evidence of the low standards applying at the organisation. In particular the PAC appears concerned about the undeclared Tipperary Tsunami bank account and the manner in which the Society did or did not deal with it and those involved.
A key issue which will be examined at the meeting is the financial control in the Irish Red Cross Society.
Chairman of the Committee, John McGuinness, TD said: “Concerns regarding the capacity of the Society to manage its administration and finance were raised in the past, particularly in relation to a sum of €162,960 that was donated to the 2005 Asian Tsunami Appeal which was left in a local bank account in Tipperary from 2005 to 2008. While no evidence of misappropriation of funds was found and the money was eventually transferred to the appeal fund in September 2008, the case highlighted problems with the governance and financial structures of the organisation.
The Committee will want in particular to see what guidelines, structures and procedures have been put in place to prevent such a situation happening again. We will also be interested in seeing what rules on the handling and tracking of donations have been implemented and if staff and members are receiving adequate training.”
The Committee will meet tomorrow, 13th October at 10am in Committee Room 1, Leinster House 2000.
Committee proceedings can be followed live at:http://www.oireachtas.ie/ViewDoc.asp?fn=/documents/livewebcast/Web-Live.htm&CatID=83&m=o
Ciaran Brennan,Houses of the Oireachtas,Communications Unit,Leinster House,Dublin 2
P: +3531 618 3903M: 086-0496518F: +3531 618 4551
John McGuinness (FF, Chairman), Kieran O’Donnell (FG, Chairman), Paul J Connaughton FG, John Deasy FG, Paschal Donohoe FG, Anne Ferris Lab, Simon Harris FG, Michael Mc Carthy Lab, Mary Lou Mc Donald SF, Michael Mc Grath FF, Eoghan Murphy FG, Derek Nolan Lab, Shane Ross Ind.
The Dail's Public Accounts Committee (PAC), made up of cross party politicians, is tasked to ensure all government funding and grants are spent effectively and as intended. The PAC review of the Irish Red Cross follows hot on the heels of the review by the Government's financial watchdog, the Comptroller and Auditor General, whereby a full chapter was given to the Irish Red Cross and its problems.
The disgraced Society continues to refuse to hold those responsible to account and as a result concerns at every level of Irish society, public, media and political, have increased over the last two years. Until those individuals who have brought the Irish Red Cross to this sorry state are held accountable and removed from their posts the damage and loss of reputation will continue unabated.
The Home Page of the Oireachtas (Ireland's Parliament) website announces the PAC's intention to examine financial irregularities at the Irish Red Cross. The link is below as is the full article. In addition to the announcement the PAC has also decided to publish and put into the public domain correspondence it has received from former Irish Red Cross Head of International, Noel Wardick. The link to this correspondence is also below.
Link to PAC announcement to examine Irish Red Cross:
Link to Noel Wardick's letter:
Public Accounts Committee to examine financial control in the Irish Red Cross Society
The Secretary General of the Department of Defence; Orla Barry Murphy, Accounting Officer in the Office of the Commissioners of Charitable Donations and Bequests; and officials from the Department of Justice will appear before the Public Accounts Committee tomorrow, Thursday, 13th October 2011
A key issue which will be examined at the meeting is the financial control in the Irish Red Cross Society.
Chairman of the Committee, John McGuinness, TD said: “Concerns regarding the capacity of the Society to manage its administration and finance were raised in the past, particularly in relation to a sum of €162,960 that was donated to the 2005 Asian Tsunami Appeal which was left in a local bank account in Tipperary from 2005 to 2008. While no evidence of misappropriation of funds was found and the money was eventually transferred to the appeal fund in September 2008, the case highlighted problems with the governance and financial structures of the organisation.
The Committee will want in particular to see what guidelines, structures and procedures have been put in place to prevent such a situation happening again. We will also be interested in seeing what rules on the handling and tracking of donations have been implemented and if staff and members are receiving adequate training.”
The Committee will meet tomorrow, 13th October at 10am in Committee Room 1, Leinster House 2000.
Committee proceedings can be followed live at:http://www.oireachtas.ie/ViewDoc.asp?fn=/documents/livewebcast/Web-Live.htm&CatID=83&m=o
Ends
For further information please contact:
Ciaran Brennan,Houses of the Oireachtas,Communications Unit,Leinster House,Dublin 2
P: +3531 618 3903M: 086-0496518F: +3531 618 4551
Committee of Public Accounts Membership comprises the following TDs (MPs):
John McGuinness (FF, Chairman), Kieran O’Donnell (FG, Chairman), Paul J Connaughton FG, John Deasy FG, Paschal Donohoe FG, Anne Ferris Lab, Simon Harris FG, Michael Mc Carthy Lab, Mary Lou Mc Donald SF, Michael Mc Grath FF, Eoghan Murphy FG, Derek Nolan Lab, Shane Ross Ind.
Monday, October 10, 2011
A question for Sinn Fein's leading presidential hopeful regarding Irish Red Cross
In the event presidential hopeful Mr. Martin Mc Guinness decides to enlighten us in detail on his IRA past perhaps he could clarify the exact role played by the Irish Red Cross in the establishment of the Provisional IRA.
At the time of the Arms Trial involving Charles Haughey and co, the late Leslie Bean De Barra, wife of guerrilla leader Tom Barry, and someone with known IRA sympathies, was director of the Irish Red Cross. Justin O'Brien, in his highly authoritative work, the Arms Trial, says the money from the Department of Finance, originally transferred to the Irish Red Cross Society to protect refugees from the North, was in fact used "to finance the emergence of the Provisional IRA". For readers not familiar, Charles Haughey, a former Irish Prime Minister, was charged with smuggling guns and funding to the Provisional IRA in the early days of his political career (1970s). It led to one of the most controversial and bitter trials in Irish history.
If Mr. Mc Guinness becomes President he automatically becomes President of the Irish Red Cross. Now there's irony for you. President of Ireland and President of the very organisation that played a role in the establishment of the IRA, which as everyone knows was an illegal terrorist organisation. Martin Mc Guinness was a leading member of the IRA for decades.
Each man is questioned by life; and he can only answer to life by answering for his own life; to life he can only respond by being responsible-Victor Frankl (1905-1997)
At the time of the Arms Trial involving Charles Haughey and co, the late Leslie Bean De Barra, wife of guerrilla leader Tom Barry, and someone with known IRA sympathies, was director of the Irish Red Cross. Justin O'Brien, in his highly authoritative work, the Arms Trial, says the money from the Department of Finance, originally transferred to the Irish Red Cross Society to protect refugees from the North, was in fact used "to finance the emergence of the Provisional IRA". For readers not familiar, Charles Haughey, a former Irish Prime Minister, was charged with smuggling guns and funding to the Provisional IRA in the early days of his political career (1970s). It led to one of the most controversial and bitter trials in Irish history.
If Mr. Mc Guinness becomes President he automatically becomes President of the Irish Red Cross. Now there's irony for you. President of Ireland and President of the very organisation that played a role in the establishment of the IRA, which as everyone knows was an illegal terrorist organisation. Martin Mc Guinness was a leading member of the IRA for decades.
Each man is questioned by life; and he can only answer to life by answering for his own life; to life he can only respond by being responsible-Victor Frankl (1905-1997)
Friday, September 23, 2011
Irish Government's financial watchdog confirms Irish Red Cross had 49 undisclosed bank accounts
Note: On 25th September 2011 the Sunday Independent, Ireland's largest selling newspaper, wrote an article on the Irish Red Cross and the Comptroller and Auditor General's report into malpractice and maladministration at the Society. The newspaper article can be found on the following link:
http://www.independent.ie/national-news/campag-report-into-affairs-at-red-cross-inaccurate-2886889.html
On 19th September 2011 the Irish Government’s financial watchdog, the Office of the Comptroller and Auditor General (C&AG) issued its 2010 annual report. The Report examines government waste, misuse of resources, tax evasion and social welfare fraud. The Report was covered extensively by the national media, TV and print, on the day of its publication.
In what must be regarded as one of the lowest points in the 72 year history of the Irish Red Cross, the C&AG’s Report designates a full chapter to the malpractice, maladministration and misgovernance within the Society.
Inclusion as chapter 32 of the C&AG report will be forever remembered as another very dark and sad episode in the lifetime of the Irish Red Cross. The fact that those responsible for the malpractice and maladministration have not yet been held to account and continue to serve on the board of the Society only worsens an already disgraceful situation. The Irish Red Cross has now found itself in a national document that reports on waste, abuse of funds, misuse of resources, evasion and fraud.
In recent years Ireland has been brought to its knees by cronyism, abuse of power, incompetence and corruption to the tune of millions and billions of Euros. The Comptroller and Auditor General reports comprehensively on these matters in his annual publication. In his latest report he felt it prudent and appropriate to designate a full chapter to the Irish Red Cross. Surely this must speak volumes about the rot at the heart of the Society and the failed leadership that has brought us to this dark and shameful place.
For those readers not familiar with the C&AG Office the Comptroller and Auditor General is an independent Constitutional Officer, appointed by the President of Ireland on the nomination of the Dáil, Ireland’s national parliament.
The C&AG's relationship with the Dáil is essentially a reporting one. All reports of the Comptroller and Auditor General are presented to Dáil Éireann and are examined on behalf of the Dáil by a committee known as the Committee of Public Accounts (PAC).
While there are close working relations between the PAC and the C&AG, the two are quite independent both in law and in practice. The C&AG or in his absence, a senior member of staff, attends the meetings of the PAC as a permanent witness.
The C&AG will consider all circumstances involving an abuse of public funds, brought to his attention. Whether a particular matter warrants investigation or examination as part of the normal financial audit will depend on the particular circumstances of the case, its materiality and the evidence available to substantiate the circumstances surrounding the alleged abuse of public funds.
Some interesting points from the C&AG Report:
Section 32.2 states “Under the Act, the Government has the power to make provisions for a range of matters relating to the organisation, operation and governance of the Society, including its finances and accounts”.
This confirms what the Blog has said on many occasions, that the Government has the right under law to intervene directly in the Irish Red Cross. Given the extent of the crisis it should do so immediately. Successive Ministers for Defence have incorrectly stated on public record that they cannot interfere in the Society’s affairs. The C&AG has now publicly confirmed that it can.
Section 32.7 states “Concerns regarding the capacity of the Society to manage its administration and finance were raised in letters from the Society’s external auditors in respect of the 2005 and 2006 audits. The auditors questioned the Society’s ability to prepare accounts for the organisation as a whole, due to the unreliability of its systems and the lack of financial information in respect of some of its branches. On foot of the 2005 and 2006 audits, the Society appointed two separate financial consultants to review the issues raised. They recommended changes be made to the Finance Department at its headquarters. The external auditors management letter of 2008 noted significant improvements in the finance and administration of the Finance Department but again commented negatively on the Society’s ability to prepare comprehensive financial statements”
Given such weaknesses it is not surprising that individuals including at least one senior board member felt confident in not reporting the existence of certain bank accounts or not submitting branch returns to head office. The weaker head office finance remained the easier for certain branches and their officers to act unilaterally and with impunity. A weak head office finance department was no accident.
Section 32.8 in quoting from the internal investigation into the undeclared Tipperary tsunami bank account states “The headquarters was not aware of the existence of the bank account until a trawl of all Bank of Ireland accounts in the name of the Society was undertaken in April 2008, at its request. This trawl led to the uncovering of 49 undisclosed accounts holding amounts that totaled €214,000, of which the Tipperary account (then standing at €162,960, including bank interest) was the most significant”.
As is public knowledge following extensive media coverage at the time the current national Vice Chairman was a signatory on the Tipperary account above.
What is most striking from the report is that the trawl of bank accounts was restricted to only those held by Bank of Ireland. Despite this limitation 49 undisclosed bank accounts were discovered with nearly a quarter of a million Euro sitting in them. The question remains how many undisclosed bank accounts would have been discovered had all banks been included, AIB, National Irish Bank, Ulster Bank etc?
If this trawl has not been extended to all other banks in the meantime then the question must be asked why not? If the trawl of one banking institution reveals €214,000 of undisclosed funds then there is no reason to believe a trawl of the other major banks would not reveal a similar amount of money hidden, undeclared and undisclosed. How many hundreds of thousands of Euros belonging to the Irish Red Cross and donated for humanitarian purposes is lying hidden in undisclosed bank accounts around Ireland? How many people are involved in concealing these bank accounts?
Another question that must be asked is have those individuals involved in keeping undisclosed and undeclared bank accounts been asked to sign statements that there is no additional hidden bank accounts in other banking institutions that they are aware of under their/Irish Red Cross name?
In light of the fact that 49 undisclosed bank accounts were discovered in one banking institution alone has the Irish Red Cross ever genuinely or seriously considered asking the Garda Bureau of Fraud Investigation to assist them in trawling all banking institutions in the country and to advise if any criminal activity has taken place?
The inclusion of the Irish Red Cross in the Comptroller and Auditor General’s annual report would in any normal well functioning and properly governed organisation result in the immediate removal of those individuals responsible for the malpractice and maladministration. This will unlikely happen in the Irish Red Cross. Enough said.
To know what is right and not to do it is the worst cowardice-Confucius
http://www.independent.ie/national-news/campag-report-into-affairs-at-red-cross-inaccurate-2886889.html
On 19th September 2011 the Irish Government’s financial watchdog, the Office of the Comptroller and Auditor General (C&AG) issued its 2010 annual report. The Report examines government waste, misuse of resources, tax evasion and social welfare fraud. The Report was covered extensively by the national media, TV and print, on the day of its publication.
In what must be regarded as one of the lowest points in the 72 year history of the Irish Red Cross, the C&AG’s Report designates a full chapter to the malpractice, maladministration and misgovernance within the Society.
Inclusion as chapter 32 of the C&AG report will be forever remembered as another very dark and sad episode in the lifetime of the Irish Red Cross. The fact that those responsible for the malpractice and maladministration have not yet been held to account and continue to serve on the board of the Society only worsens an already disgraceful situation. The Irish Red Cross has now found itself in a national document that reports on waste, abuse of funds, misuse of resources, evasion and fraud.
In recent years Ireland has been brought to its knees by cronyism, abuse of power, incompetence and corruption to the tune of millions and billions of Euros. The Comptroller and Auditor General reports comprehensively on these matters in his annual publication. In his latest report he felt it prudent and appropriate to designate a full chapter to the Irish Red Cross. Surely this must speak volumes about the rot at the heart of the Society and the failed leadership that has brought us to this dark and shameful place.
For those readers not familiar with the C&AG Office the Comptroller and Auditor General is an independent Constitutional Officer, appointed by the President of Ireland on the nomination of the Dáil, Ireland’s national parliament.
The C&AG's relationship with the Dáil is essentially a reporting one. All reports of the Comptroller and Auditor General are presented to Dáil Éireann and are examined on behalf of the Dáil by a committee known as the Committee of Public Accounts (PAC).
While there are close working relations between the PAC and the C&AG, the two are quite independent both in law and in practice. The C&AG or in his absence, a senior member of staff, attends the meetings of the PAC as a permanent witness.
The C&AG will consider all circumstances involving an abuse of public funds, brought to his attention. Whether a particular matter warrants investigation or examination as part of the normal financial audit will depend on the particular circumstances of the case, its materiality and the evidence available to substantiate the circumstances surrounding the alleged abuse of public funds.
Some interesting points from the C&AG Report:
Section 32.2 states “Under the Act, the Government has the power to make provisions for a range of matters relating to the organisation, operation and governance of the Society, including its finances and accounts”.
This confirms what the Blog has said on many occasions, that the Government has the right under law to intervene directly in the Irish Red Cross. Given the extent of the crisis it should do so immediately. Successive Ministers for Defence have incorrectly stated on public record that they cannot interfere in the Society’s affairs. The C&AG has now publicly confirmed that it can.
Section 32.7 states “Concerns regarding the capacity of the Society to manage its administration and finance were raised in letters from the Society’s external auditors in respect of the 2005 and 2006 audits. The auditors questioned the Society’s ability to prepare accounts for the organisation as a whole, due to the unreliability of its systems and the lack of financial information in respect of some of its branches. On foot of the 2005 and 2006 audits, the Society appointed two separate financial consultants to review the issues raised. They recommended changes be made to the Finance Department at its headquarters. The external auditors management letter of 2008 noted significant improvements in the finance and administration of the Finance Department but again commented negatively on the Society’s ability to prepare comprehensive financial statements”
Given such weaknesses it is not surprising that individuals including at least one senior board member felt confident in not reporting the existence of certain bank accounts or not submitting branch returns to head office. The weaker head office finance remained the easier for certain branches and their officers to act unilaterally and with impunity. A weak head office finance department was no accident.
Section 32.8 in quoting from the internal investigation into the undeclared Tipperary tsunami bank account states “The headquarters was not aware of the existence of the bank account until a trawl of all Bank of Ireland accounts in the name of the Society was undertaken in April 2008, at its request. This trawl led to the uncovering of 49 undisclosed accounts holding amounts that totaled €214,000, of which the Tipperary account (then standing at €162,960, including bank interest) was the most significant”.
As is public knowledge following extensive media coverage at the time the current national Vice Chairman was a signatory on the Tipperary account above.
What is most striking from the report is that the trawl of bank accounts was restricted to only those held by Bank of Ireland. Despite this limitation 49 undisclosed bank accounts were discovered with nearly a quarter of a million Euro sitting in them. The question remains how many undisclosed bank accounts would have been discovered had all banks been included, AIB, National Irish Bank, Ulster Bank etc?
If this trawl has not been extended to all other banks in the meantime then the question must be asked why not? If the trawl of one banking institution reveals €214,000 of undisclosed funds then there is no reason to believe a trawl of the other major banks would not reveal a similar amount of money hidden, undeclared and undisclosed. How many hundreds of thousands of Euros belonging to the Irish Red Cross and donated for humanitarian purposes is lying hidden in undisclosed bank accounts around Ireland? How many people are involved in concealing these bank accounts?
Another question that must be asked is have those individuals involved in keeping undisclosed and undeclared bank accounts been asked to sign statements that there is no additional hidden bank accounts in other banking institutions that they are aware of under their/Irish Red Cross name?
In light of the fact that 49 undisclosed bank accounts were discovered in one banking institution alone has the Irish Red Cross ever genuinely or seriously considered asking the Garda Bureau of Fraud Investigation to assist them in trawling all banking institutions in the country and to advise if any criminal activity has taken place?
The inclusion of the Irish Red Cross in the Comptroller and Auditor General’s annual report would in any normal well functioning and properly governed organisation result in the immediate removal of those individuals responsible for the malpractice and maladministration. This will unlikely happen in the Irish Red Cross. Enough said.
To know what is right and not to do it is the worst cowardice-Confucius
Tuesday, September 13, 2011
Irish Red Cross spends €140,000 on legal fees in 12 months
The Irish Red Cross 2010 audited accounts make for some interesting reading. The Blog has already covered the undeclared multi-million Euro Irish Red Cross property portfolio, which according to the external auditors, BDO, the Irish Red Cross is in breach of ‘Standard Accounting Practice for Charities’. BDO has explicitly stated this in the annual accounts every year for at least the last three years. The Irish Red Cross has, to date, failed to address the matter. It remains an ongoing scandal that properties donated to the Irish Red Cross by members of the public not only remain unaccounted for in its books but no-one appears to know what the properties are being used for and if they are generating income where the income is going and who is benefiting from it. Given the recent history of the Irish Red Cross and its undeclared bank account in Tipperary with tens of thousands of Euros discovered in it the property situation must be seen as hugely suspicious and deserving of an immediate independent investigation. Depending on the findings and recommendations of such an independent investigation a decision on whether or not to involve the Garda Fraud Investigation Bureau can be made.
But the Blog digresses! The purpose of today’s article is to report on the enormous waste of Irish Red Cross resources in 2010 on paying exorbitant legal fees. €140,000 to be precise! This is an extraordinary amount of money for a small charitable organisation to waste on legal bills. It is even more scandalous when one considers the reason for the expenditure, namely to silence the truth and protect a ruling cabal of leaders who have dominated the Irish Red Cross for years.
While the leaders remain in place the truth has been revealed and all attempts by the Irish Red Cross to silence dissent, conceal the facts and intimidate reformists have failed spectacularly. This failure cost the Society €140,000 in a 12 month period. Central to this cost was Irish Red Cross’s calamitous decision to sue Google International. The arrogance and folly of Irish Red Cross leaders is hard to fathom but it was nevertheless exposed for the world to see and gasp at. In taking on Google they learned a painful and costly lesson. Having failed in their endeavours Irish Red Cross leaders walked away with their tails between their legs while their solicitors smiled from ear to ear as they handed over their invoices.
The Irish Red Cross continues to incur legal costs in 2011. Unfortunately details on this will only be revealed in mid 2012 when the 2011 audited accounts will be published. As with the 2010 legal bills it will be too late by then to do anything about this waste. Even more disconcerting will be the legal bill the Irish Red Cross incurs in 2012 as case/s related to incidents that took place in 2010 finally come before the courts.
Sadly it will be 2013 before we know the true cost of all these legal battles. What we do know, however, is that the Irish Red Cross has a very long history of incurring enormous legal bills and 2010, 2011, 2012 will follow a long pattern of unacceptably high expenditure on the services of solicitors and barristers. This is, of course, entirely symptomatic of a dysfunctional and a woefully governed organisation. Scratch the surface and the common denominator behind these continuous legal battles over a twenty year period is a limitless obsession with power and an endless desire to remain king of the castle. In the meantime hundreds and hundreds of thousands of Euros of Irish Red Cross money has been squandered. For any solicitor firm the Irish Red Cross is a very lucrative and valued client.
What remains remarkable regarding the scandalous waste of donor money on legal fees in 2010 (€140,000) is that no-one has been held accountable. The Irish Red Cross Treasurer in 2010 was re-appointed in 2011 despite overseeing and presumably authorising this outrageous waste of money. If he didn’t authorise it specifically, through his silence and inaction he certainly permitted it to continue. His failure to prevent it is inexcusable. The Acting Chairman at the time is also complicit in this waste. He too did nothing to stop it and as head of the organisation at the time it must be assumed he sanctioned it. Combined with his central role in the Tipperary tsunami bank scandal surely his position is completely untenable.
Ultimately, however, the Executive Committee of the Irish Red Cross must take collective responsibility. Given the financial and governance scandals that have brought the Irish Red Cross to its knees in recent years the legal bill scandal is only one of a number that would justify the collective resignation of the entire Executive Committee.
In addition to an independent investigation into the hidden Tipperary tsunami bank account, the undeclared property portfolio, the Pakistan blankets, the beef consignment issue etc etc an independent examination of Irish Red Cross’s legal cases and expenses over the last 20 years would serve to expose the rot at the top of the organisation.
What must never be forgotten in all of this is that for every Euro spent on legal fees pursuing the personal agendas of board members there is one less Euro to spend on community services, first aid training, defibrillators, mountain and lake rescue, youth activities and overseas aid.
From which budget does Irish Red Cross take money to pay for its never ending legal costs? Does it come from general funds donated by the Irish public? Does it come from the Government’s grant in aid (tax payer money)? Does it come from Overseas Appeals such as Haiti, Pakistan? Does it come from its Reserves? Does it come from its Commercial activities such as the Shell Corrib account? The Audited accounts do not answer any of these critical questions as they only show the total legal expense incurred but not from which income source the money is taken from. The audited accounts are seriously flawed in this regard. Members of the public, corporate donors and the Government, who so generously donate their money to the Irish Red Cross for humanitarian activities, need to know if their donations are being misused on legal fees.
What can be determined with certainty is that €140,000 spent on humanitarian activity in say Somalia, instead of on legal bills, would save the lives of hundreds if not thousands of men, women and children. Instead the Irish Red Cross is content to line the pockets of Ireland’s legal profession.
The waste of money cures itself, for soon there is no more to waste-M.W Harrison
But the Blog digresses! The purpose of today’s article is to report on the enormous waste of Irish Red Cross resources in 2010 on paying exorbitant legal fees. €140,000 to be precise! This is an extraordinary amount of money for a small charitable organisation to waste on legal bills. It is even more scandalous when one considers the reason for the expenditure, namely to silence the truth and protect a ruling cabal of leaders who have dominated the Irish Red Cross for years.
While the leaders remain in place the truth has been revealed and all attempts by the Irish Red Cross to silence dissent, conceal the facts and intimidate reformists have failed spectacularly. This failure cost the Society €140,000 in a 12 month period. Central to this cost was Irish Red Cross’s calamitous decision to sue Google International. The arrogance and folly of Irish Red Cross leaders is hard to fathom but it was nevertheless exposed for the world to see and gasp at. In taking on Google they learned a painful and costly lesson. Having failed in their endeavours Irish Red Cross leaders walked away with their tails between their legs while their solicitors smiled from ear to ear as they handed over their invoices.
The Irish Red Cross continues to incur legal costs in 2011. Unfortunately details on this will only be revealed in mid 2012 when the 2011 audited accounts will be published. As with the 2010 legal bills it will be too late by then to do anything about this waste. Even more disconcerting will be the legal bill the Irish Red Cross incurs in 2012 as case/s related to incidents that took place in 2010 finally come before the courts.
Sadly it will be 2013 before we know the true cost of all these legal battles. What we do know, however, is that the Irish Red Cross has a very long history of incurring enormous legal bills and 2010, 2011, 2012 will follow a long pattern of unacceptably high expenditure on the services of solicitors and barristers. This is, of course, entirely symptomatic of a dysfunctional and a woefully governed organisation. Scratch the surface and the common denominator behind these continuous legal battles over a twenty year period is a limitless obsession with power and an endless desire to remain king of the castle. In the meantime hundreds and hundreds of thousands of Euros of Irish Red Cross money has been squandered. For any solicitor firm the Irish Red Cross is a very lucrative and valued client.
What remains remarkable regarding the scandalous waste of donor money on legal fees in 2010 (€140,000) is that no-one has been held accountable. The Irish Red Cross Treasurer in 2010 was re-appointed in 2011 despite overseeing and presumably authorising this outrageous waste of money. If he didn’t authorise it specifically, through his silence and inaction he certainly permitted it to continue. His failure to prevent it is inexcusable. The Acting Chairman at the time is also complicit in this waste. He too did nothing to stop it and as head of the organisation at the time it must be assumed he sanctioned it. Combined with his central role in the Tipperary tsunami bank scandal surely his position is completely untenable.
Ultimately, however, the Executive Committee of the Irish Red Cross must take collective responsibility. Given the financial and governance scandals that have brought the Irish Red Cross to its knees in recent years the legal bill scandal is only one of a number that would justify the collective resignation of the entire Executive Committee.
In addition to an independent investigation into the hidden Tipperary tsunami bank account, the undeclared property portfolio, the Pakistan blankets, the beef consignment issue etc etc an independent examination of Irish Red Cross’s legal cases and expenses over the last 20 years would serve to expose the rot at the top of the organisation.
What must never be forgotten in all of this is that for every Euro spent on legal fees pursuing the personal agendas of board members there is one less Euro to spend on community services, first aid training, defibrillators, mountain and lake rescue, youth activities and overseas aid.
From which budget does Irish Red Cross take money to pay for its never ending legal costs? Does it come from general funds donated by the Irish public? Does it come from the Government’s grant in aid (tax payer money)? Does it come from Overseas Appeals such as Haiti, Pakistan? Does it come from its Reserves? Does it come from its Commercial activities such as the Shell Corrib account? The Audited accounts do not answer any of these critical questions as they only show the total legal expense incurred but not from which income source the money is taken from. The audited accounts are seriously flawed in this regard. Members of the public, corporate donors and the Government, who so generously donate their money to the Irish Red Cross for humanitarian activities, need to know if their donations are being misused on legal fees.
What can be determined with certainty is that €140,000 spent on humanitarian activity in say Somalia, instead of on legal bills, would save the lives of hundreds if not thousands of men, women and children. Instead the Irish Red Cross is content to line the pockets of Ireland’s legal profession.
The waste of money cures itself, for soon there is no more to waste-M.W Harrison
Thursday, August 25, 2011
Could certain Irish Red Cross board members face criminal prosecution under the new Criminal Justice Act 2011?
The Irish Times has reported that legislation aimed at strengthening Garda (Irish police) powers when investigating white-collar crime and legally protecting those who turn whistleblower came into operation earlier this month.
According to the newspaper “a key part of the white collar crime provisions in the Criminal Justice Act 2011 creates a new offence of failing to report business and corporate-related crimes, which is punishable by a term of imprisonment of up to five years”.
Of particular note in relation to the Irish Red Cross is the section in the Irish Times article which states “An employer who penalises a whistleblower in any way can face up to two years in prison and the whistleblower can sue for damages”.
Only time will tell whether organisations such as the Irish Red Cross who have fired whistleblowers will have criminal prosecutions taken against them and if so whether individuals from those organisations will serve custodial sentences.
At the very least the legislation is to be welcomed and any protection afforded to whistleblowers who report wrongdoing in good faith, whether in the past or in the future, is a critically important step forward. For far too long employers have systematically and wilfully threatened, harassed and punished organisational whistleblowers. They have done so with complete impunity. That day is now over.
The first criminal prosecutions and jail sentences against individuals who have fired or targeted whistleblowers will send shock waves across Ireland but shock waves is exactly what is required. No organisation, whether private, public or charity is now above the law. All that remains to be seen over the coming months and years is which individuals and organisations are prosecuted under the new legislation and for how long those found guilty will serve in prison.
No doubt there are plenty of individuals out there who are having sleepless nights since Minister Alan Shatter brought this pioneering piece of legislation before the Irish Parliament and saw it successfully passed into law. The possible threat of criminal prosecution and a jail sentence will definitely cause insomnia even for the most brazen and shameless.
Minister Shatter said the Act was an important step in ensuring the white collar criminal would be vigorously pursued. “We must put an end to any hint of a culture that suggests that the white-collar criminal can act with impunity,” he said.
Under the Act, a person who has information that could help prevent a white collar crime or help the investigation of an offence committed is guilty of an offence unless they provide the information to the Garda. The information must be supplied “as soon as practicable”. Failure to supply the information, and to do so quickly, carries a jail term of up to five years on conviction.
Minister Alan Shatter, as well as having responsibility for passing the Criminal Justice Act 2011 also has statutory oversight of the Irish Red Cross.
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