CRC says it will chase overpayment to ex CEO

The Central Remedial Clinic has said it will deal with all outstanding issues raised in the report of its interim administrator — including chasing the overpayment made to a former chief executive.

CRC says it will chase overpayment to ex CEO

It emerged in CRC’s administrator John Cregan’s report that a €741,000 exit package agreed with former CEO Paul Kiely was worked out based on over- stated calculations.

These did not account for salary reductions which should have applied and others due to be enforced under the Haddington Road agreement.

Mr Cregan said it resulted in an overpayment which should be returned.

Health Minister James Reilly said where money was incorrectly paid to the departing executive, it should be recovered. He said it would be reasonable of the taxpayer and the charity itself to look for this money to be returned.

Responding to Dr Reilly’s comments, the CRC said it would not comment specifically on Mr Kiely’s circumstances.

However, it pointed to a line from a statement released following Mr Cregan’s report in which it said the “outstanding” issues would be addressed.

It said: “The board is due to meet immediately to develop a comprehensive plan of action to address other outstanding issues contained within the report.”

Richard Bruton, the enterprise minister, who was elected from the constituency where CRC is based, said that the charity should do whatever it could to ensure the money is returned.

Chairman of the Public Accounts Committee, John McGuinness, said the money should be repaid but the HSE was aware that there were legal issues restricting efforts to recover or reduce salaries in organisations like the CRC where contracts are in place.

Hamilton Goulding, the former chairman of the CRC, was in place when the board agreed to the departure terms presented by Mr Kiely.

In a statement, he rejected the suggestion made by Mr Cregan that the company should have waited for the Haddington Road cuts to apply before settling on Mr Kiely’s termination terms.

“[Mr Goulding] rejected implications in the report that the board should have waited to implement the Haddington Road agreement to reduce potential payments to the departing CEO, saying the HSE put immense and consistent public and private pressure on the board to immediately deal with these issues.

“The board was restricted in its actions by legal and contractual obligations that the HSE refused to accept at the time, but has since conceded represent a real challenge in dozens of other salary cases it is seeking to address,” he said.

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