Rehab and PR adviser to sue over Kelly claims

Rehab and its external PR adviser are to sue the author of a damning letter to the Dáil Public Accounts Committee over claims they are involved in potential “criminal wrongdoing” at the crisis-hit charity.

Separate statements to the Irish Examiner from the disability group and Michael Parker, a senior member of Insight Consultants, confirmed the latest twist in the Rehab drama last night.

Mr Parker's move relates to recent allegations made in the media by Mr Kelly.

On Thursday, PAC chair and Fianna Fáil TD John McGuinness revealed the cross-party body received detailed correspondence from developer John Kelly containing “serious” allegations about named individuals either working for or linked to Rehab. After holding a 90-minute private briefing between PAC members and the spending watchdog’s legal team, it was decided the claims fell outside the scope of the Dáil body, and as such would not be protected by parliamentary privilege.

Ultimately, the PAC decided to send the letter by courier to Garda Commissioner Martin Callinan.

Mr McGuinness explained this move by saying the exact accusations, which Mr Kelly stands over, “could potentially involve criminal wrongdoing”. However, despite believing this removed any legal risk, two of the individuals at the centre of the claims said they are issuing proceedings against Mr Kelly.

While Rehab and Mr Parker have not seen the letter, despite requesting the document, media lawyer Paul Tweed — who is acting on behalf of Mr Parker, and has given permission for him to be identified — said his client has been defamed. This is because of recent claims by Mr Kelly in the media, which are believed to be mirrored in the letter.

“My client vigorously and categorically denies the very serious and highly defamatory allegations made by John Kelly,” he said.

“We have today [Friday] put Mr Kelly on notice through his solicitors of our intention to issue defamation proceedings.”

A Rehab spokesperson said: “Rehab is particularly concerned the PAC has refused to provide it with a copy of the letter said to contain the allegations made. During the course of today and yesterday, media personnel have asked the Rehab Group to respond to various allegations. The Rehab Group considers those allegations put to it by the media to be utterly false and defamatory. We understand legal proceedings are presently being issued in response to the allegations made by Mr Kelly.”

The spokesperson added Mr McGuinness’s remarks at the PAC hearing were “grossly unfair” and have caused “unnecessary anxiety”.

A third individual named in the letter yesterday said he has instructed his solicitor “to pay the greatest attention to this matter”.

Mr Kelly has in recent weeks made allegations about his relationship with those named in the correspondence which he stands over.

A Garda spokesperson told the Irish Examiner the force had no comment to make on the document.