We’re the real victims: Rehab bosses

Rehab chiefs insisted they are the real victims in the ongoing financial controversy and blamed Government policy for the minuscule profits delivered on their scratch card lottery scheme.

“I’d be very surprised if public opinion is not on our side. We’re the injured party and we are the victims,” said Rehab Lotteries board member John Maguire, who insisted profits were low because the Government prize limit of €20,000 per week and the dominant position of the National Lottery had prevented Rehab from developing its lottery business.

Amid calls for greater transparency in the charities sector, Rehab, which received €41.3m in government funding in 2012, did not fully explain how the company incurred €1.3m in costs on the scratch card lottery game which had achieved €4m in sales.

Mr Maguire also refused to release details of CEO Angela Kerins annual salary, saying: “It has nothing to do with me. I’m a director of the lottery company.”

This latest charities controversy flared up in the Dáil on Tuesday night when Justice Minister Alan Shatter expressed serious concern an audit of Rehab lottery sales showed that, from its overall income of €7.2m in 2010, it saw a net profit of €558,000 or just 8%.

Mr Shatter, who is phasing out the Charitable Lottery Scheme which provides millions in compensation for charities competing against the National Lottery, expressed concern that the scheme incentivised inefficient fundraising practices as a means to leverage Government funding.

The decision is the subject of a judicial review. Rehab is also seeking €1.5bn in damages from the Government because of a loss of past and future earnings due to the National Lottery’s dominant market position.

The low level of profits from Rehab’s gambling products provoked concern from across the political spectrum.

Enda Kenny expressed “surprise” at the yield for the charity’s scratch cards.

Sinn Féin’s justice spokesman Pádraig Mac Lochlainn claimed that, for every €4 in Rehab lottery ticket sales, just 1c was returned to the charity.

Fianna Fáil’s Sean Fleming pledged the Dáil’s Public Accounts Committee, which he sits on, would get to the bottom of the matter. He also raised concerns that Camelot, which is scheduled to take over the running of the National Lottery, was intent on “clearing the pitch” of other operators in a bid to maximise profits.

Social Protection Minister Joan Burton said it was time for Ms Kerins to come clean about her salary.

“I would be absolutely on the record, not just to her, but to other people involved in the charity sector, that they should disclose their salaries and their salaries should not be excessive.”

Rehab chiefs may have to explain themselves at the Public Accounts Committee, which last night said it had decided to seek information from the Department of Justice and the HSE before deciding whether to invite the company in.

“The HSE give them €41m and we want to know how they account for that and if they audit that. We will make that decision next week,” said PAC chairman John McGuinness.