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Dáil
‹ Leaders' Questions

Console charity oversight

Summary

Deputy Fleming raises concerns about Console’s finances and the HSE audit, urging proactive regulatory action; the Tánaiste says complaints can trigger investigations involving the regulator and other authorities.

Seán Fleming Deputy Sean Fleming Fianna Fáil

Last week, RTE's "Prime Time" examined and exposed how a charity, Console, spends its money. Last April, the HSE did an audit, which is with senior management in the HSE. Console is a well known, well respected and highly regarded national charity which helps families which have lost members through suicide. It provides a 24-hour phone helpline to anybody who is distressed about himself or herself or a family member. It receives a staggering 3,400 phone calls per month, more than 100 per day. It has offices all over the country and our President is the national patron.

However, people who watched the programme were shocked, stunned and appalled at the allegations of misappropriation of funds. Console has received €2.5 million from the HSE in recent years to help it provide counselling services. Almost half of its money comes directly from taxpayers through State organisations and the balance is raised through fund-raising and donations from the public. In addition, the Department of Foreign Affairs and Trade allocated €130,000 to Console to enable it to support Irish emigrants in the UK.

Like all charities, Console depends on the goodwill of people. Thousands of people do charity walks, cycles and other fund-raising activities each year to raise funds for Console. Yesterday, I listened to restaurant owner Derry Clarke speaking on the radio. He lost his son and, afterwards, he organised a charity cycle, which raised more than €250,000 for Console's good work. He expressed the genuine hurt he felt about the allegations that were made and how he felt abused by the use of the funds he had raised and donated to Console. The CEO of Console, Paul Kelly, has since resigned. He said he had not intentionally done anything wrong. The Garda is examining the use of the funds, some of which were allegedly spent on trips to conferences in New Zealand for family members. "Prime Time" alleged that the CEO of Console had received payments of over €215,000, which allegedly is in breach of company law and Revenue regulations.

The charities regulator exists to increase public trust and confidence in the management of charities. Was the regulator aware of the allegations about Console? They have seemingly been well known to some people for many years. Did the Tánaiste discuss the revelations with the charities regulator? Will the charities regulator investigate the matter? What action is the Tánaiste taking to ensure other charities are being monitored and audited to ensure no such abuse of State funding or people's donations occurs in those areas? How will the State ensure the abuse of State funding or people's donations to charities is prevented in the future?

Comment on this

It is critical that confidence is maintained in the charities sector and that the members of the public have confidence when they make a donation to fund-raising that it will be used properly and appropriately. Concerns arose about another charity in the recent past and the previous Government ensured a charities regulator was put in place. It is distressing for people who support an organisation such as Console, which deals with the sensitive issue of suicide and supporting families, that trust has been broken in this way. I am concerned about the ongoing reports following last week's "Prime Time" broadcast. The HSE audited Console in the recent past, which brought some of the concerns to light. That demonstrates the robustness of the HSE structure in respect of charities. The priority for the executive is to ensure the ongoing provision of services and if anything further arises to disrupt them, it will step in.

The Charities Regulatory Authority is in the business of registering and regulating charities. More than 4,500 charities have registered with it. I can confirm that the authority and the UK Charities Regulatory Authority are both engaging with Console. I can also confirm that the authority's chief executive officer, Mr. John Farrelly, has been active on this and he has been in ongoing contact with its trustees and is seeking formal written undertakings from them to assure the authority, via the provision of a report, that the property and the finances of the charity are secure and subject to robust corporate governance, that allegations of financial impropriety will be investigated, that a full report on that will be issued to the authority and that they will consent to the authority applying, if required, its powers to assign new trustees to the charity to assist the current board in its work. It is clear, therefore, that the regulator is playing an active role. He has also sought reports from An Garda Síochána and is working with the force. He has asked RTE for any assistance it can give. There has been a robust response, as is appropriate, to the allegations that have arisen because it is essential that confidence be maintained in the NGO and charities sectors and the authority is in a position to carry out its functions in this regard. The Garda may have a separate role if there are other allegations.

Comment on this
Seán Fleming Deputy Sean Fleming Fianna Fáil

We are all agreed about the need for Console to continue its good work and for its reputation and good name not to be damaged but it seems the charities regulator is responding, according to what the Minister said. He should have had a proactive role. He should not wait for the damage to be done before he comes in to do something. He has powers and he should have been in Console's offices long before now dealing with these issues before they came to light publicly. This scandal has the potential to damage Console's reputation and good work and every effort must be taken to ensure that does not happen. It is crucial that these investigations be concluded speedily in order that Console and its staff can get on with their good work. It has been reported that there are up to six different sets of company accounts, which is extraordinary. This matter will also have to be addressed by the Office of the Director of Corporate Enforcement as well as the Garda and its report will also have to be examined.

Will the Tánaiste assure the House this will be brought to a speedy conclusion? Will she confirm that no other charities are being investigated by the regulator and that we will not see more television programmes such as this?

Comment on this

The charities regulator has no role in investigating fraud nor has it any competence to carry out that type of investigation. However, in respect of the behaviour of charities, once a complaint is made to the authority, it will carry out an investigation and, where appropriate, involve other bodies, whether that is the Garda or the Office of the Director of Corporate Enforcement.

However, we now have the Charities Regulatory Authority in place, and that is to reassure the public that if they have concerns about charities, they can report them to the regulator. I have no doubt that given the seriousness of this issue, the huge public interest and the confidence issues at stake, it will carry out its part of this investigation in a speedy manner.

Comment on this