Former Rehab bosses to be forced before PAC

Ousted Rehab bosses Angela Kerins and Frank Flannery are almost certain to be forced to attend a public grilling to clarify still-unanswered questions about the charity’s finances before the Dáil’s summer break.

Public accounts committee chair and Fianna Fáil TD, John McGuinness, revealed the move is likely before July after it ended weeks of delays by the officials and finally moved to formally “compel” them to attend.

Speaking at the cross-party body’s latest meeting, PAC members said they have “no option” than to take the drastic step after repeated stonewalling from Ms Kerins and Mr Flannery.

Mr McGuinness said the latest attempt to delay the issue came on Wednesday night, when the two would-be witnesses sent legal letters claiming the PAC is acting outside the law and will face “grave consequences” if it continues to investigate.

Mr McGuinness said, despite the claim, the PAC sees “the use of public money as within our remit” and will not shirk its responsibility.

To prove the point, the group is to send a request to the Dáil’s oversight committee on privilege and procedure “asap” as a step towards compelling Ms Kerins and Mr Flannery to attend.

Speaking about the latest legal letters, Sinn Féin deputy leader Mary Lou McDonald said the threats were “bogus” and “designed to delay” the PAC even further.

Fianna Fáil TD, Sean Fleming, said the matter was “the most blatant attack on the committee’s powers” and that he has “never seen” such an attempt to avoid questioning in this country, while Independent TD, Shane Ross, said the claims were “utterly absurd”.

The letters — sent by Dore and Company solicitors and Eames Solicitors to the PAC hours before a final deadline asking Ms Kerins and Mr Flannery to willingly attend ran out yesterday morning — had accused PAC members of “a gross abuse” of their position and knowingly acting outside the law.

They said their clients, who have repeatedly failed to answer specific questions on how charitable and taxpayers’ money was spent, are being subjected to a “witch-hunt” and “personal vendetta” fuelled by “PR”.

In particular, Mr Flannery’s legal team — Dore and Company — claimed the PAC is “not legally allowed” to examine Rehab’s finances since 1994 when the State stopped auditing the group.

Claiming they are “no longer fit and proper persons” to conduct any investigation, it said the PAC’s chair has sought information on Mr Flannery’s Rehab connections from the Revenue Commissioners.

Mr McGuinness rejected the claim yesterday. However, he said in light of the continuing stonewalling efforts he will now send transcripts of the PAC’s meetings about Rehab to the Revenue Commissioners and the Director of Corporate Enforcement to see if they wish to examine certain issues more closely.

Meanwhile, a 50-page update letter sent by Rehab to the PAC on Wednesday night shows Insight Communications, a group linked to Mr Flannery and which until recently was the charity’s outside PR firm, was paid €220,000 by the group between 2011 and 2014.

Insight has always stressed Mr Flannery has never carried out any work for it on behalf of Rehab, which he has been linked to for the past three decades.