Peter McVerry’s homeless charity paid almost €1.7 million in fees to a law firm led by the brother of a director in the charity, a new report has found.
The fees were paid over 20 months in 2022 and 2023 to Lavelle Solicitors, whose managing partner Michael Lavelle is a brother of long-time McVerry director Richard Lavelle.
The findings were set out by the Approved Housing Bodies Regulatory Authority (AHBRA), the supervisor of not-for-profit groups such as the McVerry Trust that receive public funds to provide affordable housing.
The charity established by Jesuit priest Fr McVerry hit a financial crisis in 2023, necessitating a €15 million Government bailout that led to intense regulatory scrutiny of its affairs.
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AHBRA inspectors have now raised fresh concerns about lax financial controls and poor board oversight, saying “no one” acknowledged responsibility for an inaccurate fixed asset register.
Without identifying Lavelle Solicitors or Richard Lavelle, the inspectors said they asked whether there was any link between the charity’s legal firm and a board member, “as they had the same last name”.
They went on to quote Fr McVerry, without naming him, saying “everybody knew” they were brothers but that the arrangement was not seen as a conflict of interest.
“When the board member concerned was queried about a possible conflict of interest with their brother conducting business with the [approved housing body], they responded that ‘I have taken advice on it and there is no conflict of interest from my role’,” the inspectors said.
The law firm received more than €1.42 million in 2022 and €247,994 in January-August 2023. “The inspectors found no evidence of a potential conflict of interest declaration or potential conflict discussion at board or subcommittee level in this regard.”
Michael Lavelle did not return a call and email to his office. Richard Lavelle declined to comment.
Inspectors cited Fr McVerry saying former chief executive Pat Doyle wanted to engage the law firm when joining the charity in 2005. “Board member 3 stated they were ‘quite happy’ to let former CEO 1 ‘look after all that’,” the report said, quoting the priest.
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