CRC report: fundraising body established to maximise State funding

A report by the interim administrator into the Central Remedial Clinic has criticised the board of the organisation for rushing into a pay-off deal for retiring Chief Executive Paul Kiely.

The 164 page report - published by the HSE in the past half hour - also said that the Friends and Supporters of the CRC was established to maximise State funding, by not revealing the level of monies from fundraising.

"I have concluded that the only rationale for the establishment of Friends and Supporters of the CRC, as a company separate from the CRC, was the maximisation of the HSE funding of CRC services," he wrote.

"The inference drawn being that if the HSE had been aware of the level of funds available, it may have reduced its annual allocation to the CRC."

Today's report recommended that Friends& Supporters should be wound up as soon as is practicable.

One of the most serious findings is that Mr Kiely's retirement package was over-stated and the administrator says monies should be repaid or recovered.

The administrator, John Creegan, said the board did not take the time to calculate the golden handshake deal, especially given as Haddington Road pay-cuts were imminent.

And he criticises the board for being aware of austerity, a hardening of public pay policy, and that the level of the CEO's package was the most serious governance issue and they did not inform the HSE of their plans.

Mr Cregan said the Board of Governors of the CRC then "added fuel to the fire" by offering the position of CEO to a former board member, again without the approval of the CRC.

But the administrator said he has not found anything that he believes should be reported to any other organisation such as the Director of Corporate Enforcement or any other authority.

In a statement, the CRC said it was dealing with "complex legacy issues" and its new board had "already begun to address many of the issues raised in the report."

"The board is due to meet immediately to develop a comprehensive plan of action to address other outstanding issues," it said.

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