Rehab lobbying details revealed but questions remain

As a showdown edges closer between Rehab’s former bosses and the Dáil’s spending watchdog, the charity has revealed fees paid for lobbying and trips, but questions still remain unanswered.

Former Rehab CEOs Frank Flannery and Angela Kerins have until Wednesday week to agree to co-operate with the Public Accounts Committee or attempts will be made to compel them.

Rehab has for the first time now confirmed details to PAC about Mr Flannery while he was a director for the charity, invoicing them for lobbying Government departments and business trips to European capitals among activities.

The letter from Rehab chairman Brian Kerr to PAC on Wednesday also addresses salaries paid by the charity, as well as separate recent reports that a former board member of Rehab received €2.5m in consultant fees.

PAC heard two weeks ago that Rehab paid Mr Flannery more than €400,000 in consultancy fees between 2007 and 2013, a period after he stepped down as CEO but was still on the board.

Mr Kerr outlined the nature of work done by Mr Flannery. This included representing the Rehab Group’s interests with and advising charity staff about Workability International, a body helping employ the disabled, and the European Platform for Rehabilitation, a network of groups providing services.

Under “public affairs support” Mr Kerr said Mr Flannery had “engagement with key politicians on issues” relating to the Rehab Group. At the time, Mr Flannery was a key strategist and advisor with Fine Gael.

In addition to lobbying Government departments, Mr Flannery also advised “from time to time on business development and acquisitions within Rehab enterprises”.

Trips he billed to the Rehab Group included for work done in Brussels, Amsterdam, and Heidelberg relating to the European Platform for Rehabilitation and also for “international representation” for the Rehab Group.

His invoices were also for “undertaking all relevant consultation with Rehab Group chief executive and relevant staff members”.

He also invoiced the charity for various meetings relating to legal action around the charity lottery funds and for two days at a judicial review at the Four Courts.

Other details provided by Mr Kerr include the total in salaries paid out by the Rehab Group in 2012, which amounted to €4.26m for 75 people across a range of areas from IT to finance to communications and public affairs.

Mr Kerr also addressed concerns last week expressed about €2.5m paid in consultant fees to John Hussey, a board member of Rehab and the brother in law of a former Fine Gael minister, which were not revealed to PAC.

He said the fees were paid to Mr Hussey for management consultancy services between 1994 and 2005.

“There was no intention to withhold information from the committee,” said Mr Kerr, adding that the fees were in the company’s accounts.

Despite the letter, PAC wrote to Rehab this week seeking more answers. PAC chairman John McGuinness has also signalled in recent days that it will widen its investigation and has written to other groups in relation to inquiries about Rehab’s spending of public funds.

PAC still wants to know the total paid to consultants each year for public relations. Questions also remain about amounts paid in fees and agreed by former CEOs Mr Flannery and Ms Kerins. PAC members say only they can address these queries.

A representative for Mr Flannery could not be reached yesterday. Solicitors for him and Ms Kerins have ordered Rehab not to reveal details about their pay or pensions. Rehab say it will provide as much information “as is in their power to provide”.