Troubled Leas Cross runs up losses of €1m

CONTROVERSIAL nursing home Leas Cross ran up losses of nearly €1 million last year.

As relatives of former Leas Cross residents were given advanced copies of an independent report to be made public today, into 105 deaths at the north Dublin home, newly-filed accounts reveal the massive costs incurred last year.

Owner John Aherne’s company had showed profits in early 2005, of €582,384 for the previous year.

But the company Sovereign Projects Limited reported losses during 2005 of €885,375.

The abridged accounts, ending January this year, are in stark contrast to the turnaround in the home’s finances during the year it was dogged by controversy.

An RTÉ Prime Time investigation had revealed neglect, abuse and disturbing conditions at the 111-bed facility.

The new accounts show expenses exceeded income, despite a fall off in staff numbers and wages in the same year.

Leas Cross failed to reduce its cash burn, using the spare money the company held in the bank.

Figures in early 2005 showed Mr Aherne’s company held €1,019,903 cash in hand. The figure reportedly fell to just €103,113 by early 2006.

On the other hand, while Leas Cross was suffering turnover losses, it had also reduced staff numbers.

Figures show the number of nursing, cleaning and administration staff at the home fell from 74 to 61 at the Swords facility. In addition during 2005, Mr Aherne’s company paid €1,272,548 in wages and salaries, around €650,000 less than the previous year.

Leas Cross closed in June last year. Despite its value recorded in the recently filed accounts as being €2.76m, it is thought to have been sold for a multiple of this since then.

The figures about the facility’s loss-making situation emerged as today’s planned report, by geriatric consultant Professor Des O’Neill, is expected to condemn conditions at Leas Cross.

The report was completed in April and submitted to the Health Service Executive (HSE). Its release was withheld due to legal concerns.

However, responses from those highlighted in the review of deaths at the home will be included in today’s release.

These will include responses on behalf of John Aherne and staff at Leas Cross; management with the former Northern Area Health Board along with replies from the Department of Health.

However, last night, a fresh row was emerging after some families claimed they had not received advanced copies.

A relative of one former Leas Cross resident said: “We got a letter saying it would be mailed out but lots of other families were given no notice”.