Family’s private horse deals revealed

Internal emails have revealed how the family of a former director at Horse Racing Ireland (HRI) was given a special platform to build business opportunities with the Chinese clients of the semi-state body.

Private deals ran parallel to formal visits organised and paid for by a HRI subsidiary. These deals led to the resignation of Michael O’Hagan, CEO of Irish Thoroughbred Marketing (ITM). He was also a director of international affairs at HRI.

The emails show Mr O’Hagan’s wife, Josephine, was included in the organisation of buying trips for Chinese customers.

These allowed her to set up private sales for show- jumping animals separate to the race horses ITM had paid for them to see.

Last October the Fethard, Co Tipperary-based family was afforded three days with a group of customers toferry them to private clients. The delegation was hosted for 10 days. They were brought by ITM to look at thoroughbred horses for three days. But they were also left with the O’Hagans to examine private sales.

ITM arranged for the O’Hagans to be given:

* Access to the Chinese clients and the use of a hired car and interpreters;

* Advice on preparing trips for perspective clients;

* Direct requests from ITM to source specific horses.

For the October trip, ITM paid €1,900 for the services of an interpreter. Three days was spent viewing the show jumping horses, costing ITM €600. A Ford Galaxy cost ITM €735 to rent.

Correspondence, released under the Freedom of Information Act, shows soon after ITM appointed an Asian representative in Aug 2011, Mr O’Hagan visited her in China. On his return he emailed her to say he had asked his wife to look into finding at least three sport horses for an ITM client. Afterwards Ms O’Hagan, in an email to the liaison and her husband, looked to formalise the agreement with a contract.

“I think that it would be appropriate that a fee... be paid to act as sole agents to the Chinese national team in this mission and that a commission on all purchases would be charged.”

This was not agreed and a week later the O’Hagans again contacted the liaison. “We are willing to waive this fee as you suggested. We will agree to [sum redacted] plus out of pocket expenses ... and a commission charge on any horse purchased,” it said. It is not known how much the O’Hagans earned.

Earlier this year, Mr O’Hagan was warned by HRI about his conduct with Chinese clients. Later, it emerged Ms O’Hagan was again involved in the sale of another horse to an ITM client. This led to HRI disciplining Mr O’Hagan. He resigned before that process was completed.