THE COST to scandal-hit charity Bóthar of identified alleged fraud and related legal and other costs now totals €1.2million.
That is according to figures contained in new accounts filed by the Limerick-based charity which state that the cost of the identified alleged fraud and connected legal costs totals €490,878 for the 12 months to the end of June 2021.
This follows a combined bill of €713,058 over the prior three-year period.
In their report, the directors state that the matters relating to the alleged fraud “have damaged the reputation of the charity in the eyes of the public at large and damaged trust for loyal supporters and partners”.
The alleged fund misappropriation first came to public attention through High Court proceedings brought by Bóthar in 2021. The new accounts show that Bóthar’s income from donations plummeted by 41.6 per cent from €2.83m to €1.65m in the 12 months to the end of June 2021.
The estimated cost of the identified alleged fraud for 2021 totals €28,025, which brings to a total of €393,583 over four years, with costs in 2020, 2019, and 2018 estimated at €52,354, €187,768, and €125,436 respectively.
The directors caution that these amounts do not reflect the full extent of what they believe to be the value of the alleged fraud.
The newly filed accounts, only approved by directors on Monday July 3, show that there have been “substantial costs” to the charity in pursuing matters connected to the alleged fraud.
The directors state that “with the viability of the charity at stake the board have taken measures to ensure that robust financial controls and good governance are in place across the organisation”.
The directors also state that “the organisation has streamlined various expenditures, including payroll costs, overhead and running costs and the disposal of a former office premises in Dublin. We have also ensured to claim our tax back income. Our intention is to recommence active fundraising once we have published our accounts and communicated clearly with stakeholders.”
The board stated that they had projected certain income through 2023 and in the first six months of 2023 the projected level has been on target, indicating that they are confident in Bóthar’s ability to maintain and grow income levels.
The bulk of the €1.2m bill to Bóthar from the alleged fraud concerns connected ‘legal and other costs’ which totals €810,353 for 2021 and 2020, made up of €462,853 for 2021 and €347,500 in 2020.
Bóthar’s activities include aiding poor farmers in developing nations through donations of livestock and the accounts show that in his report, independent auditor Damian Gleeson of Grant Thornton has provided a ‘disclaimer of opinion’ on the financial statements.
Mr Gleeson explains “we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements”.
He states that “despite full cooperation from the current Board members and the new CEO, it has not been possible to furnish us with all the information and explanations, which we consider necessary for the purposes of our audit”.
In his report, Mr Gleeson states that “there are ongoing investigations into the various activities by the former CEOs over a substantial number of years”.
In the High Court, David Moloney, who resigned as CEO of the charity in February 2021, said he and the former chief executive, the late Peter Ireton, misappropriated hundreds of thousands of euro in cash. Mr Ireton, who passed away in April 2021, had denied any impropriety.
