€6m grant but still no scratch card profits from Rehab

The Rehab Group has not provided Justice Minister Alan Shatter with recent profits from its controversial scratch card game, despite receiving over €6m in public funding and providing assurances there was “complete transparency” over the running and costs of all of its lottery games.

The company’s lottery was embroiled in controversy after Mr Shatter revealed to the Dáil that in 2010 Rehab made a miniscule profit of €9,452 from scratchcard sales of €3.9m.

He has told the Dáil Rehab did not supply details on the profitability or otherwise of the scratch card games for 2011 and 2012. Despite the absence of the figures, the Department of Justice still paid €6.51m to Rehab under the Charitable Lotteries Scheme for its scratch card and bingo games.

In a written reply to Reform Alliance TD Billy Timmins, Mr Shatter showed how Rehab scratchcard sales in 2011 were €3.8m, it only provided a net profit for its scratch card and bingo games of €590,000. Likewise in 2012 scratch card sales were €3.4m and overall profits were €514,000.

In 2010 the €9,452 profit represented just 0.25% of the overall lotteries profit of €558,000.

However, Rehab received €3.9m and €2.5m from the charities refund scheme for the years 2011 and 2012.

Last week Mr Shatter raised concerns that the scheme was no longer “fit for purpose” as it incentivised charities to maximise sales with no regard for costs or profitability.

He ordered that the scheme be phased out, but Rehab has taken a €1.5bn compensation claim against the Government, claiming unfair competition from the National Lottery.

Last night, a spokesman for Rehab said the group had been fully paid under the Charities Lotteries Scheme up until the end of 2013 and was not aware of any outstanding compliance requirements.

Wicklow TD Mr Timmins said he assumed the Department of Justice will seek the 2011 and 2012 scratch card figures to show if Mr Shatter’s arguments over the levels of profitability are consistent

Rebab, which received €245.8m in public funding since 2009, has called a special board meeting next month when it is expected to release details of the pay of its chief executive, Angela Kerins, whose last known annual remuneration was €234,000 in 2011.

The not-for-profit group caved in to mounting public pressure after the Taoiseach Enda Kenny intervened in the dispute calling for details of the salaries of all charity chiefs to be made public to end the “nauseating spectacle”.