Auditor ‘appalled’ at falsifying of ICC accounts
The evidence was heard during an unfair dismissals claim taken by former ICC accountant Edmund O’Brien, of Newmarket in Co Cork, against the club.
The Employment Appeals Tribunal heard allegations on Wednesday that Mr O’Brien was involved in a “cover-up” while employed by the Irish Coursing Club, allowing former club chief executive, the late Jerry Desmond, spend funds on “holidays and dining and wining”. This led to Mr O’Brien’s dismissal.
Yesterday, Ian Ronan of auditors Glavin and Ronan said his company were engaged by the ICC to audit their accounts in 2008.
They found that, for the 2008 accounts, a number of journal entries were made by Mr O’Brien to change the figures.
When the auditors removed the “false journals,” for which they could find “no logical explanation,” general expenses came to €124,083, of which flights and accommodation and entertainment accounted for €45,506.
One example involved €70,000 being “removed” from the miscellaneous section and, of that, €36,000 being entered for “grants to [coursing] clubs”.
Mr O’Brien told the auditors the journal entries were made “for commercial reasons, at the request of Jerry Desmond”.
The accounts were made to “look correct” at the club’s AGM by having the same bottom line, but details within them were changed.
Mr Ronan said he asked Mr O’Brien what the “commercial reasons” for changing the accounts were, but that he got no answer.
He told the hearing the practices amounted to “false accounting, to write into the books and records of a company, false information”.
An effect of this was to prevent ordinary members of the club from knowing everything that was being spent. “It probably prevents anyone asking a question. In my eyes, it was to make the accounts look consistent, to prevent people asking questions.”
Asked how he felt about another accountant engaging in such practices, Mr Ronan said: “As a professional I would be appalled to see another professional carrying out such journals.”
Under cross-examination by solicitor Frank Nyhan, for Mr O’Brien, the witness said his company reported Mr O’Brien and Mr Desmond to the Office of the Director of Corporate Enforcement but no action was taken against either.
The hearing has been adjourned until Feb 26.