The Central Remedial Clinic (CRC) has asked its charity and fundraising wing to write off a €3 million loan that was used to help pay for pension liabilities.
In a statement, the CRC said that, in future, public and private funds will only be spent “in relation to furthering the wellbeing and health of people with disabilities”.
The CRC, a Dublin care centre for people and children with disabilities, was at the centre of controversy in late 2013 and early 2014 over pension top up arrangements given to former staff.
At the time, a HSE internal audit investigation found its former chief executive Paul Kiely, prior to his retirement, had been receiving a total remuneration package of €242,865.
This was made up of a State-funded salary of €106,900, a CRC-funded salary of €116,949 and a separate CRC-funded allowance of just over €19,000.
It also emerged that after stepping down Mr Kiely received a retirement lump sum of €200,000. The Public Accounts Commitee was told that his pension when drawn down would be more than €90,000 a year.
In a letter to the committee, the HSE said it appeared "the payments to Mr Kiely could not have been made by the CRC without funds received from the Friends and Supporters of the CRC".
The committee also heard Mr Kiely was one of about 70 CRC staff covered by a private pension arrangement organised by the disability group.
Liabilities
In a statement on Wednesday, the CRC said: “The Central Remedial Clinic made a formal request to Friends and Supporters Ltd to write off a loan of €3 million advanced to it in 2012 to help finance the CRC’s pension liabilities.”
The request was disclosed later in CRC accounts and was agreed to by the Friends and Supporters of the CRC.
“As a charity the CRC does not have the means to repay a loan to Friends and Supporters Ltd and cannot undo the actions of previous years, leaving no alternative but to make this request,” the statement added.
It also said the Friends and Supporters of the CRC is in the process of being wound up, with its remaining assets of over €13 million due to be transferred to the CRC this year.
“The transfer of assets from Friends and Supporters to the CRC has been agreed and all funds received by F&S since September 2014 have gone directly to the CRC to support the delivery of services,” the statement added. “The remaining assets will be transferred in coming months.
The long-term pension liability of the CRC is €9.2 million, as disclosed in the CRC’s latest accounts.
The directors of the CRC, newly-appointed in early 2014, intend that no funds under their control will be spent in relation to pension liabilities, and indeed that funds received from public and private support should be used to further the wellbeing and health of people with disabilities.”