John Brassil (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Over the past week, a number of revelations have come to light surrounding the suicide prevention charity, Console. This morning's edition of The Irish Timesfeatures a report that Console's former chief executive officer and his wife and son ran up credit card bills of almost €500,000 on items such as groceries, designer clothes and foreign trips over a three-year period. We are informed that the items for which the credit cards were used included large unvouched cash withdrawals, trips to Australia, New Zealand, Singapore and other destinations, designer clothing in outlets such as Ralph Lauren and Hugo Boss, dining out, Rugby World Cup tickets and dental work. The largest single expenditure item on these credit cards was cash withdrawals of €87,026. Of these, the former CEO withdrew €66,296 and no documentation was provided to identify how these cash sums were used.

This report follows last week's "Prime Time" programme which examined how Console spent its money. These revelations have caused outrage and distress. Many of those who did voluntary work for the organisation feel especially let down.

Console was allocated approximately €2.5 million by the Health Service Executive in recent years to help it provide counselling services. Almost half of the charity's revenue comes directly from taxpayers through State bodies and the balance is raised through funding and donations from members of the public. The CEO, Mr. Paul Kelly, has resigned his position.

He said he has not intentionally done anything wrong. "Prime Time" alleged that the chief executive of Console received payments in excess of €215,000, apparently in breach of company law and Revenue regulations. The HSE told The Irish Timeslast week that some concerns relating to corporate governance, including the appointment of a new chairperson and reporting relationships between the management and the board, were raised in 2009. Certain control actions were put in place at the time, including the placing of a limit on the organisation's funding.

Why did the HSE sit on this audit report for more than six months when credit cards were live, buying Rugby World Cup tickets and drawing down payments? How much was Console allocated in 2016? Why did the HSE continue to fund the charity when concerns were raised about Console as far back as 2009? Was the HSE aware of allegations about the former chief executive, Paul Kelly, to the effect that he pretended to be a doctor to get a job in the Royal City of Dublin Hospital on Baggot Street and masqueraded as a brother in a religious order? Is it the case that following his resignation the chief executive told staff that he was still at the helm and turned up at the charity's office in Celbridge saying that it was business as usual?

The Minister of State may well tell us that the HSE maintains its money was properly spent and that what happened to the charitable donations was nothing to do with the executive. Nevertheless, would it not be good practice for the HSE to examine how Console spends its other moneys given that the HSE is providing so much money to the organisation?

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

First, I acknowledge the work that RTE's "Prime Time" has done on this issue. In the absence of publicly provided services, for example, for bereavement, the charity sector steps in. Good governance and finances must be beyond reproach because they can bring an organisation into disrepute as quickly as the adequacy or inadequacy of the service that organisations provide.

There are 4,500 charities registered in the country. This presents a challenge of oversight and shows the fragmentation in the sector. Many of these are small organisations but the example of Console shows the importance of good governance and proper financial oversight as well as the serious consequences for those who abuse their position. There should be serious consequences.

I am keen to separate the role of the staff of the charity who are doing a necessary and fine job from this controversy. They are paying a heavy price for what has transpired. Instead, we should be paying our attention to Paul Kelly, his wife, Patricia, and their son and other family members. They are the people I wish to direct my concern towards. They gained trust because they understood the need for the service, a service they have now compromised. The series of failures appear to span everything from company law to criminal law to Revenue obligations and the Charities Act. It is a breathtaking series of failures.

Normally, a charity has to have a set of audited accounts to receive State funding. The accountants appear to have had adverse comments on the accounts. The auditor appears to have identified those failures. Did the charity continue to receive State funding after those failures were identified? They also need to provide information on the directors to receive State funding. How could they have been family members in that case? So many flags were raised in this case that it is incredible Console continued to receive State funding.

The HSE carried out an evaluation in 2006. What controls did the HSE put in place after that? How did family members continue to sit on the board? On the "Prime Time" programme, the HSE representatives appeared to identify the need for the service as paramount. Was this policy to the detriment of putting controls in place? Given the constrained public funding, I would have thought even more controls should have been put in place at that point, but that does not appear to have happened because the amount of money seems to have escalated.

We are a generous people and we contribute a great deal to charities. That we have 4,500 charities identifies that. However, these revelations do extensive damage to public confidence. The Social Democrats have argued that there is a need for an anti-corruption agency. There must be consequences. We must stop the fragmented approach in our response whereby a scandal is followed by an inquiry and a report. A more robust approach is needed to prevent this from happening again and to change behaviour.

Did the provision of public funds continue after the internal audit was carried out? Were controls put on the board? Many questions remain unanswered but the major issue is the question of public trust. Public trust will not be satisfied unless there are consequences and unless we put systems in place to provide for those consequences.

Pat Buckley (Cork East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

There is little doubt that in recent years, due to the number of scandals, public trust and confidence in the charity sector has been damaged because of the actions of a handful of people in a small number of organisations. Scandals involving generous salary top-up payments, gold-plated pensions and unjustifiable expense claims have been splashed across newspapers and television screens as well as exposed through the Committee of Public Accounts. These scandals have pointed to the need for greater regulation of the charity sector as well as the need for the State to step up to the mark in terms of service provision to avoid these scandals in future and to prevent the wasting of public charitable donations and State support in future.

The public has been rightly upset and dismayed at the recent scandals surrounding the charity Console. The body is known throughout the country and widely respected for its important work on suicide prevention and with bereaved families. Its name has been dragged through the mud because some senior figures were able to take advantage of the lax regulation and unchecked expenses and accounts. Of course, Console must take responsibility for the abuse of the trust of its supporters and those who depend on its services, but the State must play a role as well because it has failed to live up to its role, in spite of previous scandals at other bodies such as Rehab. Obviously, work has been done and improvements have been made to the Charities Regulatory Authority since the Rehab scandal. Still, we have had to rely on investigative work from RTE for the truth to come out.

Many charities operating in this country do so responsibly and they should not suffer for the wrongful actions of a handful of people. Paul Kelly, chief executive of Console, his wife, Patricia, and their son, Tim, benefited from almost €500,000 in salaries and cars between 2012 and 2014 with a further €500,000 spent during that period on Console credit cards for items including groceries, designer clothes and foreign trips. Between them Paul, Patricia and Tim Kelly used 11 credit cards over a three-year period. This scandalous use of charity funds is a slap in the face to other employees, supporters and the people the organisation serves. How much work could have been done with this money? Instead it was frittered away on luxuries. It is truly sickening.

What is the Government going to do to protect against this kind of abuse in future? How will it identify past abuses and bring them to light in order that people can again have faith in the charities to which they donate?

Charities like Console exist for the most part because of the failure of the State to provide adequately for the needs of the people. We are well aware of this. There is no state-wide crisis intervention service for adults and there are long waiting lists for counselling. This is the fault of the State for failing to deliver. It forces people to provide these services through charitable bodies which, unfortunately, are open to these kinds of abuses.

Helen McEntee (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the three Deputies for raising what is an important issue. I share their view that Console, like all charities, relies on the goodwill and generosity of the public. A trust has been broken, and when the issue is suicide and a vulnerable part of our society, it is especially upsetting.

Console is one of the charities funded in part through the HSE's National Office for Suicide Prevention, to provide counselling, therapy and support services to people who have been bereaved by suicide. The services provided by the agency are of a high standard and have been of benefit to many individuals. I do not think we would question the service that is being provided.

The HSE audit into Console was initiated in April 2015 by the National Office for Suicide Prevention following an examination of the 2013 returns from Console to the HSE, which were received in late 2014. The HSE has confirmed that concerns arose in a number of areas, including the corporate governance and financial management of the agency. In 2009 the HSE raised concerns over Console, resulting in certain control actions being taken by the National Office for Suicide Prevention at that time. The HSE also put in place a revised governance framework in 2014 for all organisations funded by it.

The internal audit process into Console is continuing and the HSE is considering the most appropriate line of action following the recent response of the agency to the audit findings. All communications with Console continue to be conducted by the HSE according to proper audit processes and having regard to appropriate legal procedures.

The Charities Regulatory Authority and the UK Charity Commission are both engaging with Console arising from the findings of the HSE audit. The Office of the Director of Corporate Enforcement and the Garda Síochána are also engaged with the agency as a result of these findings. Finally, two independent experts have been appointed by Console arising from the findings of the audit conveyed to the agency.

As the Deputies have pointed out, the need to maintain public confidence in the charity sector is extremely important, particularly in view of the excellent work of benefit to vulnerable people in our society that is carried out in that sector.

I fully support the involvement of the Charities Regulatory Authority in this matter. As Deputies will be aware, the Garda Síochána is also involved in this sensitive matter as a result of the audit findings.

While this is a serious matter that needs to be comprehensively investigated, it is of equal importance that the valuable services offered by Console are not adversely affected. These services continue to be available, including the freefone 24-7 helpline. The HSE has informed my Department that it has not uncovered any issues with the standard of the Console services funded by the executive. It is important for everyone to know that when people have gone to Console, they have received the best help possible.

However, the issues uncovered by the audit are extremely serious and require detailed consideration to ensure that services are delivered in future under the most appropriate governance and financial frameworks. The HSE is in contact with the two independent experts appointed by Console, and the executive is also considering alternative arrangements for services provided by the agency, if this is deemed necessary. Consideration by the HSE of alternative service options has been under way in parallel with the audit process. It is important to allow the due process to take place. The HSE has assured me that all due process regarding the audit and legal proceedings is being followed. It is critical that confidence is maintained throughout the charities sector.

John Brassil (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for her reply. I do not believe anybody in this House questions the work Console does. It is a given that it does fantastic work and hopefully will continue to do so.

However, the problem lies with governance. It is our job, as legislators, to tackle any such problem with governance in order to ensure it does not happen again. If the Minister of State does not have the direct answers to the questions I posed, she should go back to the HSE with the following questions and seek clarification.

I will repeat the questions. Why did the HSE sit on the report for six months when the credit cards were alive and buying Rugby World Cup tickets and drawing down payment? That should not have been allowed to happen. How much was Console allocated in 2016? Why did the HSE allow Console to continue when the initial concerns were raised in 2009? If it was not for the good work by RTE and The Irish Timesin uncovering this, it would have continued for a number of years more.

Crucially, why was action not taken sooner? Concerns were raised, but action was not taken. For me that does not add up. We all accept the good work that has been done and that should continue to be done. However, when problems of governance arise and questions are not answered properly, the entire charity sector suffers. It is our job to put that right and ensure it does not happen again.

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

Unfortunately, it is not just this charity that will suffer, but the entire sector because of the erosion of public trust. Therefore, there must be consequences. Given the number of agencies involved, is there a cross-sectoral arrangement to exchange information? Why was the board not suspended? The Minister of State said that due process should be allowed to proceed. We seem to allow due process in cases where there should be an immediate reaction so that a bad situation is not made worse where there is an issue.

There was a pattern of misrepresentation here which was breathtaking, including the CEO misrepresenting himself as a doctor and a reverend, and stating that people, who were not on the board, were on the board. If RTE could pick that up, why was it not identified in 2006 when the flag started to be raised on this?

Has section 4 of the Charities Act been commenced in order to allow the charity regulator to initiate investigations, and if not, why not?

This will affect the public trust in other charities. We need at least an interim response to this. It cannot be allowed to drift because there will be immediate impacts on the entire charity sector. We have 4,500 charities, many of which do the job that would be done by public agencies in other countries. We rely on them and we rely on public support and undermining it is a really serious issue.

Pat Buckley (Cork East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I agree with what the previous speakers said. If it was any other circumstance where some wrongdoings were found to be going on a number of years earlier, action would have been taken. Given that the HSE had flagged this issue back in 2009, why did it not go to the Garda immediately? We are talking about serious allegations involving an extremely large amount of money.

This is most damaging to the NGOs, the voluntary sector and the other charities that deal with suicide and suicide prevention which do amazing work. We are hoping to be able to improve all these services nationwide. It beggars belief that it was not flagged sooner. This is 2016. One has to commend the bodies involved in the investigation.

I welcome that Console has not been adversely affected, but I fear that the staff working there are probably under much more pressure now and that should not be the case. For more than 14 years I have been involved with NGOs dealing with suicide and suicide prevention. This results in an air of suspicion being associated with people who are genuinely interested in helping others. We have to praise the people who are delivering the service, given that the State has failed to deliver the service.

Helen McEntee (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputies again. I stress that my priority and that of the HSE and the Department has been and will continue to be to provide assurances regarding the continuity of the various services that are offered. These matters are not always as black and white as we would like them to be. There is a due process that needs to be followed. If a matter of concern about a particular individual or organisation is raised, those involved must be given time to respond to the issue in question. It is my understanding that many issues have been raised in this instance. It will take time for them to be considered. No funding has been provided to this charity so far this year. It is important to say that all funding has been stopped pending the investigation. Our priority must be to ensure alternative arrangements are put in place to make certain that these services do not stop. We must allow the Garda and the regulatory bodies to conduct the roles we have given them. As we know, the Charities Regulatory Authority has no role in investigating fraud. However, it can move this matter on to the relevant officials. It is with the Garda now. I think we need to allow due process to take place.