On the 9th December 2011 Transparency International (Ireland), the highly reputable global organisation that fights corruption and abuse of power, wrote an open letter to the Minister for Justice, Defence and Equality, Mr. Alan Shatter, calling on the Irish Red Cross to commission an independent investigation into reports of weak financial management and governance at the Society.
Previously Transparency International wrote to the Irish Red Cross but their request for an independent investigation fell on deaf ears. It is of course a damning indictment on the Irish Red Cross that an organisation as credible and highly respected as Transparency International deems it appropriate to call for an independent investigation into the Society’s affairs.
It remains to be seen if Minister Shatter responds in any meaningful way to the call by Transparency International. Certain individuals (past and present) at the Irish Red Cross have much to hide and much to fear from an independent investigation. At a minimum it is likely its board members would come in for severe criticism. It is also a possibility that any independent investigation would result in the Garda Fraud Bureau of Investigation being asked to assist although any such call would be a matter for the independent investigation.
The question is whether the Minister has the stomach for an investigation as it would undoubtedly involve scrutiny of his own Department. It can be assumed with near certainty, given their record of indifference and inaction and therefore complicity, that senior civil servants in the Department of Defence would not be keen to see any independent investigation take place.
The full transcript of the Transparency International letter is transcribed below and can also be seen on the Transparency International Ireland website on the link:
http://www.transparency.ie/news_events/ti-ireland-open-letter-minister-alan-shatter-irish-red-cross
Mr Alan Shatter T.D.
Minister for Justice, Equality and Defence
Department of Justice and Equality
94 St Stephen’s Green
Dublin 2
9 December 2011
Dear Minister Shatter,
I write on the occasion of UN Anti-Corruption Day to firstly congratulate the Irish Government on the ratification of the UN Convention against Corruption this year. We are convinced that this important legal instrument will help Ireland meet its commitments to reaching and maintaining international standards of good governance and are happy to offer whatever help your department should require in reviewing its implementation.
As you are aware, Article 33 of the Convention recognises the important role of good faith reporting in protecting the public interest.
I should therefore also use this opportunity to draw your attention to the continued concerns of Transparency International Ireland (TI Ireland) over the failure of the Irish Red Cross Society (IRC) to commission an independent investigation into reports of weak financial management and governance at the Society made by Mr Noel Wardick, former Head of the IRC’s International Department.
Mr Wardick was dismissed on the grounds of gross misconduct on 10 November 2010 for having publicly commented on the governance of the IRC. He is still unemployed and unable to gain employment pending his appeal for unfair dismissal to the Employment Appeals Tribunal.
On 9 December 2010, TI Ireland wrote to the Central Council of the IRC encouraging them to commission an independent investigation into Mr Wardick’s claims. In spite of the Comptroller and Auditor General’s critical report into poor financial management of state funding at the IRC, no independent investigation has taken place into Mr Wardick’s public statements on the management of public donations and governance at the charity.
We believe that the IRC’s refusal to commission an independent investigation into his claims will serve as a great disincentive to anyone wishing to report financial irregularities or the risk of wrongdoing in the charity sector. We would therefore ask you to press upon the IRC the importance of an independent investigation into Mr Wardick’s reports. Such a measure would not only help seek a fair resolution to all the parties in this case, but also serve the public interest.
Yours sincerely,
John Devitt
Chief Executive
On a Separate Matter:
1. It appears the issue of the very poor 2011 Floods Appeal was not properly discussed at the recent Central Council meeting on 10th December 2011. For those not familiar with the situation an unwise decision was taken after the highly localised but severe flooding that took place primarily in Dublin in November to launch a nationwide appeal. The appeal involved radio and newspaper advertisements and as such significant costs would likely have been incurred. The appeal raised a gross amount of circa €30,000, extremely small for a national appeal. When the costs of the appeal advertisements are deducted the net amount would have been very much less. To put €30,000 in context in 2009 when vast areas of the country were flooded over €1 million was raised. It is highly unusual for the Irish Red Cross to launch a costly national appeal for a localised emergency that received no more than a day or two of national media coverage. Those experienced in such matters, had they been available, would have advised against a national appeal as the response permitted from raising smalls sums of money leaves many affected families disappointed and frustrated. Unfortunately for the Society many saw the appeal for what it was, namely a public relations exercise that had little real substance to it. Hopefully some valuable lessons have been learned by senior Irish Red Cross management who made the questionable call to launch a national appeal.
2. The decision, if confirmed, to suspend the purchases of all ambulances in 2012 and to ask branches to cover costs directly related to their branches that were previously covered by head office is welcome and long overdue. In recent years the Irish Red Cross head office has incurred some sizeable and costly annual operating deficits and these have severely impacted the Society’s ability to grow and develop. Much of this was due to head office being forced to incur massive costs covering branch expenses and outlays related to purchasing new ambulances. Millions of Euros reside in bank accounts across the country which belongs to local branches yet head office is obliged to pay many branch direct costs, a clearly unsustainable policy and one that has cost the organisation many hundreds of thousands of Euros in recent years. It could easily be argued that the pressure to close the worsening head office operating deficits led to the decision in 2010 to allocate over €600,000 donated by the public and intended for Haiti into the domestic fund. By doing so the 2010 annual accounts showed a near breakeven point for the Society. The reality, however, was that a huge deficit had been incurred. Earthquake victims in Haiti paid the price on this occasion.
3. In relation to ambulances no new purchases should take place until such time as a full scale assessment and performance audit is carried out on the 140 or so vehicles that operate under the name of the Irish Red Cross. Such a performance audit with recommendations should be carried out by independent fleet management specialists and not by internal Red Cross staff, volunteers or board members. A comprehensive fleet management and accountability system needs to be implemented. All future ambulance purchases post the suspension should only be made after a comprehensive cost/benefit analysis and should be based on a real need and an ability to efficiently and effectively address that need. Ambulances as status symbols and a means to influence, reward and control must have no future in the Irish Red Cross.
4. It is hoped that the suspension of ambulance purchases will ensure the Irish Red Cross no longer drains valuable resources and energy away from other critically important humanitarian programs carried out domestically by the Irish Red Cross such as the ever growing and expanding Youth Program, the highly impressive Restoring Family Links Program, the HIV/AIDS Program, the Community Services Program including therapeutic hand care etc and the highly innovative and pioneering Prisons Health Care Program. It is essential these programs are properly resourced and invested in. While they are no more important than first aid and ambulances equally they are no less important.
Tuesday, December 20, 2011
Wednesday, December 7, 2011
Will Irish Red Cross issue formal apology to families who donated properties?
For over twenty years the national media in Ireland has reported on the financial irregularities, misuse of resources and poor governance at the Irish Red Cross. During this time, and particularly in recent years, there has been a number of shocking revelations. One of the more significant of these has been the discovery that the Irish Red Cross has an extensive property portfolio that it has failed to declare in its financial statements, in breach of Standard Accounting Practice for Charities. The Irish Red Cross estimated in 2010 that the value of these properties was in the region of €7 million. While presumably the value has declined substantially over the last year or two due to the recession the omission of assets worth millions of Euro from the Society accounts is a matter of utmost public concern.
What is important to note re the undeclared properties is that the Irish Red Cross has been fully aware for nearly twenty years that it was in blatant breach of accounting and financial protocol by purposefully and consciously omitting valuable assets from its financial statements. The current external auditors of the Irish Red Cross, BDO, have highlighted the matter every year since 2000. As a result of its actions the Irish Red Cross has wilfully misrepresented its financial accounts to the Irish Government, its members and volunteers, its staff and to the Irish public every year for nearly two decades.
The location of these properties, the use to which they are put (if any), their state of repair, who is responsible for them, their rental income if any and who donated them has been kept a closely guarded secret by a tight inner circle of individuals. The information has been kept from the highest governing authority of the Society, the governing Central Council. Many on the closed and secretive Executive Committee have little knowledge or detail on the property portfolio. The question must therefore be asked, and answered by way of an independent investigation, why this is so.
If any such independent investigation deems it appropriate, the Garda Bureau of Fraud Investigation could be asked to assist.
The failure of governance, senior financial management and fiduciary oversight at the Irish Red Cross has allowed this situation arise and continue for years. As with the litany of other scandals at the Society no-one has been held accountable. Because the charity sector in Ireland is so poorly regulated the Irish Red Cross has been permitted to breach proper accounting procedure year on year without any person ever being prosecuted or held to account for doing so.
For those not familiar with the correct accounting procedure for the treatment of donated assets such as properties to the Society the property must be professionally valued and the amount recorded as INCOME in the financial statements. The value of the donation must also be recorded as an ASSET on the balance sheet. For every property donated to the Irish Red Cross the Society failed to do this. As such the annual accounts massively misreported the income of the Society and under reported the value of its assets by millions and millions of Euros.
In understanding the nature of this scandal it is very important to realise that these unrecorded and unaccounted for properties were, in the main and possibly in entirety, donated to the Irish Red Cross by members of the public following the death of the property’s owner. As Irish people will know only too well one’s home is usually by far the most valuable asset a person accrues in their lifetime. For any Irish person or family to donate a property to a charity is a hugely generous and selfless act.
These properties were donated by the families for use by the Irish Red Cross in its pursuit, as per its mandate, of humanitarian activities and to be used in the best interests of the Society and its intended beneficiaries. The fact that the Irish Red Cross repeatedly failed to keep track of these properties, has mislaid title deeds and ownership documents, failed to record the properties in the Society’s accounts, has left a number of properties idle and vacant and has been unable to explain how or what the properties are used for is a shocking betrayal of public trust. It represents a scandalous misuse of assets worth millions of Euros.
If even one family donated cash of say €100,000 to the Irish Red Cross and the money was not recorded in the accounts and the money was difficult to locate or track down or its use not readily identifiable it is likely the Gardai would be immediately be called in. Or at least that is what would happen in a well functioning organisation. Failure to record and keep track of extremely valuable property donations is no different than failing to record and keep track of cash donations.
As a direct result of the Dail’s (Ireland’s Parliament) Public Accounts Committee Hearing on the 13th October 2011 into allegations of financial irregularities at the Irish Red Cross and following the inclusion of the Society (Chapter 32) in the Comptroller and Auditor General’s Annual Report the Department of Defence was forced to admit for the first time that the Irish Red Cross has at least 18 properties around Ireland that it has failed to record or properly account for. The Department did not state whether 18 was the totality of the missing properties. The Department did state that for ten of these properties it would take at least another 6-12 months “to re-construct documents of title for 10 of these”. This is a shocking indictment of incompetence and negligence at the Society.
Readers may be interested to know that the Society was instructed to deal with the property problem as far back as 1992. To-date not one person has been held to account for this spectacular failure of governance and management. It can only be hoped that the Dail’s Public Accounts Committee follow-on Hearing into the Irish Red Cross scheduled for 2012 will shed some further light on this distasteful affair.
In the meantime nothing short of a full scale public apology to the families of bereaved loved ones and kind benefactors who donated properties is immediately required of the Irish Red Cross.
In addition to the public apology the Irish Red Cross needs to be seen to hold those responsible to account and it needs to state on public record that such misuse of resources and financial irregularity will never occur again. It will also be critically important that the Irish Red Cross state categorically (assuming it can do so with conviction) that no criminal offence or activities took place in relation to the properties. This apology, given the scale of the betrayal of trust, should be issued by way of large public advertisements in the main national newspapers (Irish Times, Irish Independent and Sunday Independent) as well as on TV and radio. It is also an absolute necessity that all families who donated properties are individually contacted and the situation and future plans explained in detail to them.
On the 10th December 2011 the Central Council of the Irish Red Cross will meet. It can only be assumed that the Central Council report issued to members in advance of the meeting has an extensive and detailed report on the Dail Public Accounts Committee’s ongoing investigation into the Irish Red Cross. One also assumes that the upcoming Public Accounts Committee hearing into the Irish Red Cross in 2012 will be discussed and debated at length. It is a matter for the Central Council to decide how this matter should be handled and as such they need to direct the Secretary General and Executive Committee accordingly.
The inclusion of a full chapter on financial mismanagement at the Irish Red Cross in the Government’s Comptroller and Auditor General’s Annual Report will also presumably be high on the agenda.
In the event that the Central Council report omits the fact that the Irish Red Cross is under investigation by the Dail’s most powerful and influential cross party Committee it will prove beyond doubt that nothing has changed and that the Irish Red Cross remains as closed, secretive and misgoverned as ever. It will also demonstrate once again that information is purposely held from the highest deliberative authority of the Society.
Given the staggering incompetence and deceit shown over PropertyGate this Blog calls on Central Council members to instruct the Secretary General to initiate an independent investigation into the affair. In the meantime the Central Council should reassert its ultimate authority and demand a full list of all Irish Red Cross properties, their location, their current use, their current physical state and who has day to day responsibility for each one. These assets are worth millions of Euro and the supreme governing authority of the Society (the Central Council) needs to demand and insist on full disclosure.
Consideration should be given to the establishment of a special Property Sub-Committee of the Central Council to interact with any independent investigation. Members of this sub-committee would, as part of their terms of reference, visit and physically inspect every single Irish Red Cross property. It would be much more preferable if such a sub-committee was made up of non-Executive Committee members in order to avoid any conflict of interest. Any independent investigation would then liaise with this sub-committee, the Department of Defence and if necessary the Garda Fraud Bureau. Perhaps a representative from the International Committee of the Red Cross (ICRC) could also sit on either the CC Property Sub-Committee or the Independent Committee.
Time will tell whether the Irish Red Cross has the moral courage to apologise to all those donor families it has failed so badly. The history and culture at the top of the Irish Red Cross tells us no such apology will ever be forthcoming. There are those who tell us things are changing at the Society and changing for the better. Perhaps these individuals would be better advised to desist from their empty propaganda and spin. Instead proof via actions and substance that the Irish Red Cross has changed would be far more desirable. Hold people to account, demand resignations, enforce them if not forthcoming and issue a public apology. Then perhaps we might believe.
True remorse is never just a regret over consequence, it is a regret over motive-Mignon McLaughlin
What is important to note re the undeclared properties is that the Irish Red Cross has been fully aware for nearly twenty years that it was in blatant breach of accounting and financial protocol by purposefully and consciously omitting valuable assets from its financial statements. The current external auditors of the Irish Red Cross, BDO, have highlighted the matter every year since 2000. As a result of its actions the Irish Red Cross has wilfully misrepresented its financial accounts to the Irish Government, its members and volunteers, its staff and to the Irish public every year for nearly two decades.
The location of these properties, the use to which they are put (if any), their state of repair, who is responsible for them, their rental income if any and who donated them has been kept a closely guarded secret by a tight inner circle of individuals. The information has been kept from the highest governing authority of the Society, the governing Central Council. Many on the closed and secretive Executive Committee have little knowledge or detail on the property portfolio. The question must therefore be asked, and answered by way of an independent investigation, why this is so.
If any such independent investigation deems it appropriate, the Garda Bureau of Fraud Investigation could be asked to assist.
The failure of governance, senior financial management and fiduciary oversight at the Irish Red Cross has allowed this situation arise and continue for years. As with the litany of other scandals at the Society no-one has been held accountable. Because the charity sector in Ireland is so poorly regulated the Irish Red Cross has been permitted to breach proper accounting procedure year on year without any person ever being prosecuted or held to account for doing so.
For those not familiar with the correct accounting procedure for the treatment of donated assets such as properties to the Society the property must be professionally valued and the amount recorded as INCOME in the financial statements. The value of the donation must also be recorded as an ASSET on the balance sheet. For every property donated to the Irish Red Cross the Society failed to do this. As such the annual accounts massively misreported the income of the Society and under reported the value of its assets by millions and millions of Euros.
In understanding the nature of this scandal it is very important to realise that these unrecorded and unaccounted for properties were, in the main and possibly in entirety, donated to the Irish Red Cross by members of the public following the death of the property’s owner. As Irish people will know only too well one’s home is usually by far the most valuable asset a person accrues in their lifetime. For any Irish person or family to donate a property to a charity is a hugely generous and selfless act.
These properties were donated by the families for use by the Irish Red Cross in its pursuit, as per its mandate, of humanitarian activities and to be used in the best interests of the Society and its intended beneficiaries. The fact that the Irish Red Cross repeatedly failed to keep track of these properties, has mislaid title deeds and ownership documents, failed to record the properties in the Society’s accounts, has left a number of properties idle and vacant and has been unable to explain how or what the properties are used for is a shocking betrayal of public trust. It represents a scandalous misuse of assets worth millions of Euros.
If even one family donated cash of say €100,000 to the Irish Red Cross and the money was not recorded in the accounts and the money was difficult to locate or track down or its use not readily identifiable it is likely the Gardai would be immediately be called in. Or at least that is what would happen in a well functioning organisation. Failure to record and keep track of extremely valuable property donations is no different than failing to record and keep track of cash donations.
As a direct result of the Dail’s (Ireland’s Parliament) Public Accounts Committee Hearing on the 13th October 2011 into allegations of financial irregularities at the Irish Red Cross and following the inclusion of the Society (Chapter 32) in the Comptroller and Auditor General’s Annual Report the Department of Defence was forced to admit for the first time that the Irish Red Cross has at least 18 properties around Ireland that it has failed to record or properly account for. The Department did not state whether 18 was the totality of the missing properties. The Department did state that for ten of these properties it would take at least another 6-12 months “to re-construct documents of title for 10 of these”. This is a shocking indictment of incompetence and negligence at the Society.
Readers may be interested to know that the Society was instructed to deal with the property problem as far back as 1992. To-date not one person has been held to account for this spectacular failure of governance and management. It can only be hoped that the Dail’s Public Accounts Committee follow-on Hearing into the Irish Red Cross scheduled for 2012 will shed some further light on this distasteful affair.
In the meantime nothing short of a full scale public apology to the families of bereaved loved ones and kind benefactors who donated properties is immediately required of the Irish Red Cross.
In addition to the public apology the Irish Red Cross needs to be seen to hold those responsible to account and it needs to state on public record that such misuse of resources and financial irregularity will never occur again. It will also be critically important that the Irish Red Cross state categorically (assuming it can do so with conviction) that no criminal offence or activities took place in relation to the properties. This apology, given the scale of the betrayal of trust, should be issued by way of large public advertisements in the main national newspapers (Irish Times, Irish Independent and Sunday Independent) as well as on TV and radio. It is also an absolute necessity that all families who donated properties are individually contacted and the situation and future plans explained in detail to them.
On the 10th December 2011 the Central Council of the Irish Red Cross will meet. It can only be assumed that the Central Council report issued to members in advance of the meeting has an extensive and detailed report on the Dail Public Accounts Committee’s ongoing investigation into the Irish Red Cross. One also assumes that the upcoming Public Accounts Committee hearing into the Irish Red Cross in 2012 will be discussed and debated at length. It is a matter for the Central Council to decide how this matter should be handled and as such they need to direct the Secretary General and Executive Committee accordingly.
The inclusion of a full chapter on financial mismanagement at the Irish Red Cross in the Government’s Comptroller and Auditor General’s Annual Report will also presumably be high on the agenda.
In the event that the Central Council report omits the fact that the Irish Red Cross is under investigation by the Dail’s most powerful and influential cross party Committee it will prove beyond doubt that nothing has changed and that the Irish Red Cross remains as closed, secretive and misgoverned as ever. It will also demonstrate once again that information is purposely held from the highest deliberative authority of the Society.
Given the staggering incompetence and deceit shown over PropertyGate this Blog calls on Central Council members to instruct the Secretary General to initiate an independent investigation into the affair. In the meantime the Central Council should reassert its ultimate authority and demand a full list of all Irish Red Cross properties, their location, their current use, their current physical state and who has day to day responsibility for each one. These assets are worth millions of Euro and the supreme governing authority of the Society (the Central Council) needs to demand and insist on full disclosure.
Consideration should be given to the establishment of a special Property Sub-Committee of the Central Council to interact with any independent investigation. Members of this sub-committee would, as part of their terms of reference, visit and physically inspect every single Irish Red Cross property. It would be much more preferable if such a sub-committee was made up of non-Executive Committee members in order to avoid any conflict of interest. Any independent investigation would then liaise with this sub-committee, the Department of Defence and if necessary the Garda Fraud Bureau. Perhaps a representative from the International Committee of the Red Cross (ICRC) could also sit on either the CC Property Sub-Committee or the Independent Committee.
Time will tell whether the Irish Red Cross has the moral courage to apologise to all those donor families it has failed so badly. The history and culture at the top of the Irish Red Cross tells us no such apology will ever be forthcoming. There are those who tell us things are changing at the Society and changing for the better. Perhaps these individuals would be better advised to desist from their empty propaganda and spin. Instead proof via actions and substance that the Irish Red Cross has changed would be far more desirable. Hold people to account, demand resignations, enforce them if not forthcoming and issue a public apology. Then perhaps we might believe.
True remorse is never just a regret over consequence, it is a regret over motive-Mignon McLaughlin
Friday, November 18, 2011
Call in Ireland's parliament for Irish Red Cross Vice Chairman and Treasurer to step down
Not for the first time in recent months there has been another call in Ireland’s parliament, Dail Eireann, for the Irish Red Cross national Vice Chairman, Anthony (Tony) Lawlor, to step down from his post after serving a staggering 21 years in the position. In addition to calls for Mr. Lawlor to step down an additional call was made for the Irish Red Cross Treasurer, Mr. Ted Noonan, to also consider stepping down. Mr. Noonan has been a member of the Executive Committee for ten years and the Treasurer for the past three years. He has been at the helm as Treasurer throughout recent controversies at the Society.
In suggesting both Mr. Lawlor and Mr. Noonan step down, Deputy Finian McGrath stated on the 9th November 2011
“To ask the Minister for Defence his views that the time is now appropriate for the Vice Chairman and Treasurer of the Irish Red Cross to step down from their positions in order to allow for a more reasonable turnover of personnel at leadership positions within the Irish Red Cross”.
In addition Deputy McGrath stated:
“To ask the Minister for Defence if following his letter to the Chairman of the Irish Red Cross of 16th July 2011 (should have read 16th May) regarding corporate governance issues the Society has now considered a more comprehensive reform of its corporate governance arrangements; his views on the fact that the current vice chairman of the IRC is still serving in that position for the 21st year in a row, that the current Treasurer in that position for ten years in a row and both on the Executive Committee for 21 and 10 years respectively; his further views on whether this arrangement is in line with best practice corporate governance guidelines; and if he will make a statement on the matter”
On the issue of governance and the misgovernance at the Irish Red Cross Deputy McGrath had a third question for the Minister:
“To ask the Minister for Defence if consideration has been given to incorporating term-limits and retrospection of service for members of the Irish Red Cross executive committee in the amendments to the Irish Red Cross Order 1939; when he expects to bring forward the draft legislation on the Red Cross to Cabinet for approval; and if he will make a statement on the matter”
Deputy Finian McGrath is a senior, well respected and influential politician in Ireland’s parliament. His interventions in the Irish Red Cross crisis are both important and welcome. In calling for the resignation of the Society’s Vice Chairman and its Treasurer Deputy McGrath is targeting the heart of the deep rooted problems and dysfunction that exists. Internally within the Irish Red Cross there is a great fear and reluctance to tackle the core issues that have brought humiliation, shame and disgrace on the Society. Such fear and reluctance is often typical of dysfunctional governance structures where group think and a herd mentality become accepted practice. When this becomes ingrained, as it has within the Irish Red Cross, only decisive external intervention will resolve the problems.
Minister Alan Shatter has taken a much more robust approach to the Irish Red Cross than any of his predecessors who remained completely indifferent during their tenures in office, the consequences of which we are paying for today. Minister’s Shatter’s letter of 16th May 2011 to the Irish Red Cross Chairman, which was subsequently kept from Central Council members until revealed on this Blog, made it very clear he wished to see long serving board members depart the board of the Irish Red Cross. The Irish Red Cross rejected the Minister’s suggestion and reappointed the Vice Chairman and Treasurer. It remains to be seen if the Minister penalises the Irish Red Cross for its insistence in persisting with appalling governance practices by reducing the annual government grant to the Society in 2012.
In typical Irish Red Cross fashion the date and agenda of the upcoming Central Council meeting are being kept a closely guarded secret. Such secrecy is reflective of the fear and paranoia of the Society’s leadership. With an extremely weak and complient Central Council the ruling elite and the controlling cabal continually get away with treating fellow board members in this dismissive manner.
It can only be hoped that at the November/December Central Council meeting that Central Council members will find their independence and courage and finally demand the resignations and removal of the Vice Chairman and the Treasurer. It is humiliating and embarrassing for the Society that such courage is left to those external to the Society. Until such time as the Vice Chairman is held to account for his actions and the Treasurer for his inactions and both removed from all Irish Red Cross governance structures the Society will suffer indefinitely.
No amount of tinkering at the edges of reform and producing endless written policies will compensate for the damage done by not holding people responsible for wrongdoing and negligence to account.
The link to the Parliamentary Questions of the 9th November 2011 and the Minister’s replies is:
http://www.kildarestreet.com/wrans/?id=2011-11-09.904.0
The parliamentary question put down on the awarding of an Irish Red Cross IT/Web Design contract to a UK company was not answered and appears to have been withdrawn.
All persons ought to endeavour to follow what is right, and not what is established-Aristotle
In suggesting both Mr. Lawlor and Mr. Noonan step down, Deputy Finian McGrath stated on the 9th November 2011
“To ask the Minister for Defence his views that the time is now appropriate for the Vice Chairman and Treasurer of the Irish Red Cross to step down from their positions in order to allow for a more reasonable turnover of personnel at leadership positions within the Irish Red Cross”.
In addition Deputy McGrath stated:
“To ask the Minister for Defence if following his letter to the Chairman of the Irish Red Cross of 16th July 2011 (should have read 16th May) regarding corporate governance issues the Society has now considered a more comprehensive reform of its corporate governance arrangements; his views on the fact that the current vice chairman of the IRC is still serving in that position for the 21st year in a row, that the current Treasurer in that position for ten years in a row and both on the Executive Committee for 21 and 10 years respectively; his further views on whether this arrangement is in line with best practice corporate governance guidelines; and if he will make a statement on the matter”
On the issue of governance and the misgovernance at the Irish Red Cross Deputy McGrath had a third question for the Minister:
“To ask the Minister for Defence if consideration has been given to incorporating term-limits and retrospection of service for members of the Irish Red Cross executive committee in the amendments to the Irish Red Cross Order 1939; when he expects to bring forward the draft legislation on the Red Cross to Cabinet for approval; and if he will make a statement on the matter”
Deputy Finian McGrath is a senior, well respected and influential politician in Ireland’s parliament. His interventions in the Irish Red Cross crisis are both important and welcome. In calling for the resignation of the Society’s Vice Chairman and its Treasurer Deputy McGrath is targeting the heart of the deep rooted problems and dysfunction that exists. Internally within the Irish Red Cross there is a great fear and reluctance to tackle the core issues that have brought humiliation, shame and disgrace on the Society. Such fear and reluctance is often typical of dysfunctional governance structures where group think and a herd mentality become accepted practice. When this becomes ingrained, as it has within the Irish Red Cross, only decisive external intervention will resolve the problems.
Minister Alan Shatter has taken a much more robust approach to the Irish Red Cross than any of his predecessors who remained completely indifferent during their tenures in office, the consequences of which we are paying for today. Minister’s Shatter’s letter of 16th May 2011 to the Irish Red Cross Chairman, which was subsequently kept from Central Council members until revealed on this Blog, made it very clear he wished to see long serving board members depart the board of the Irish Red Cross. The Irish Red Cross rejected the Minister’s suggestion and reappointed the Vice Chairman and Treasurer. It remains to be seen if the Minister penalises the Irish Red Cross for its insistence in persisting with appalling governance practices by reducing the annual government grant to the Society in 2012.
In typical Irish Red Cross fashion the date and agenda of the upcoming Central Council meeting are being kept a closely guarded secret. Such secrecy is reflective of the fear and paranoia of the Society’s leadership. With an extremely weak and complient Central Council the ruling elite and the controlling cabal continually get away with treating fellow board members in this dismissive manner.
It can only be hoped that at the November/December Central Council meeting that Central Council members will find their independence and courage and finally demand the resignations and removal of the Vice Chairman and the Treasurer. It is humiliating and embarrassing for the Society that such courage is left to those external to the Society. Until such time as the Vice Chairman is held to account for his actions and the Treasurer for his inactions and both removed from all Irish Red Cross governance structures the Society will suffer indefinitely.
No amount of tinkering at the edges of reform and producing endless written policies will compensate for the damage done by not holding people responsible for wrongdoing and negligence to account.
The link to the Parliamentary Questions of the 9th November 2011 and the Minister’s replies is:
http://www.kildarestreet.com/wrans/?id=2011-11-09.904.0
The parliamentary question put down on the awarding of an Irish Red Cross IT/Web Design contract to a UK company was not answered and appears to have been withdrawn.
All persons ought to endeavour to follow what is right, and not what is established-Aristotle
Thursday, November 3, 2011
Minister indicates a cut in Irish Red Cross government funding maybe on the cards
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.
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.
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)
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