The High Court has granted temporary injunctions preventing access to the bank accounts of the suicide bereavement counselling service, Console by its former chief executive and his wife.
Paul Kelly, his wife Patricia Kelly, otherwise known as Patricia Dowling, and Mr Kelly’s sister Joan McKenna, as directors of the charity, are also injuncted from interfering with its economic, commercial and public interests.
Mr Justice Paul Gilligan made orders freezing Console's bank accounts save for with written instructions from David Hall, the interim chief executive appointed by the board to run the organisation.
Martin Hayden SC, who made the application on behalf of Console, said the orders were required to “steady the ship” and ensure the important counselling service it provides is maintained.
It also came after Mr Kelly, who initially said he was resigning, resiled from that position and gave interviews saying he was still CEO, the court heard.
Mr Justice Gilligan made orders restraining the defendants or others from using any confidential information or books and records of the charity and that all records taken from its offices be returned.
He also ordered the return of all goods and property including, but not limited to, any assets paid for with Console funds.
In an affidavit, Mr Hall said he was appointed by the Console board to carry out an investigation with accountant Tom Murray on the same day as an RTÉ Prime Time programme carried a report of its investigations into the charity.
There was a provision in Console’s rules, under which it is registered as a company, that no director or trustee be paid a salary, fees or receive any remuneration, he said.
The address of all three defendants and of the company itself is Alexandra Manor, Clane, Co Kildare.
At a board meeting with the three remaining directors, Mr Hall was informed they did not even know they were directors and had not attended functions, events or activities of Console.
They had no hand, act or part in running the charity and were not notified, nor attended, any meetings of the board, they said.
At a meeting last Monday (June 27th) with Mr Kelly and his wife, at which Mr Hall sought the handover of keys and records on foot of their resignations, it became heated and Mr Kelly alleged he had not in fact resigned, Mr Hall said.
He (Kelly) also gave interviews to the media that it was “business as usual”.
Mr Hall and Mr Murray prepared an interim report raising serious concerns about the control, running and governance of Console.
Concerns arose that the lack of management was affecting the running of the organisation and that someone had been in its offices over the weekend and some records were now missing.
There were further concerns about its bank accounts and that there were potentially 10-plus credit cards in existence which there was no control over.
The computer, which holds staff payroll and payment records, had also been removed from the office.
Mr Hall took a number of steps to protect the charity including informing the Charities Regulatory Authority, the Director of Corporate Enforcement and the Garda Fraud Bureau.
Mr Hall, who was appointed interim chief executive on Wednesday (June 29), formed the view the charity was in serious and exceptional danger and remained so because of actions and statements of Mr Kelly.
As a result, it was decided to seek injunctions so that Console would not suffer irreparable damage and to meet its obligations to creditor, staff, suppliers and continue services.
During the injunction application, the court heard concerns were first raised in a HSE audit report about the governance of Console.
Among the issues raised were the purchase of an Audi 25, a Mercedes CLS and a Citroen C4, expenditure on trips abroad including Australia and New Zealand, and substantial payments to Mr Kelly’s wife, son and his sister.
The court also heard there was €90,000 outstanding to the Revenue for PRSI and PAYE.
The case comes back before the court next Tuesday.