IFA to withhold Pat Smith’s ‘void’ €2m severance deal

The IFA is to withhold the €2m severance package agreed between its former president and its now- departed secretary general on the basis that it is legally void.

The deal, sparked by controversy over the pay packet of Pat Smith while he was IFA secretary general, cost Eddie Downey his job as president, even though the organisation contends it is not legally binding because the body’s treasurer, Jer Bergin, refused to sign off on it.

It is also understood that while the IFA’s solicitors were in contact with Mr Downey before he entered negotiations with Mr Smith on November 19, they were not in the room when the discussions were taking place and balked at the size of the package when it was revealed to them afterwards. The same day, Mr Bergin, a former IFA presidential candidate, refused to sign off on the deal.

Eddie Downey

IFA national council members only heard of the revelations surrounding the severance deal at the IFA emergency meeting on Wednesday, and within 20 minutes Mr Downey was preparing his resignation letter.

As news of the extraordinary series of events emerged yesterday, deputy and now-acting president, Tim O’Leary, became the first person to throw his hat in the ring to succeed Mr Downey. He told RTÉ that the severance deal, which he learned of after the event, was not acceptable to the IFA and said it was “not agreed”.

Tim O’Leary

One argument is that Mr Smith was not sacked but stepped down. The other point, and one which is exercising lawyers for the IFA, is whether or not Eddie Downey as president had sufficient powers under the IFA’s own constitution to agree such a severance package. Finally, Mr Bergin’s refusal to sign off on the deal is also seen as raising questions over its validity.

Both Mr Downey and Mr Bergin did not return calls from the Irish Examiner, while Mr Smith said he was not in a position to discuss anything due to confidentiality issues.

Jim Bergin

One employment law expert said the IFA may be on solid ground in claiming that the severance deal for Mr Smith is void. Cork solicitor Ernest Cantillon said that while details were not known, the IFA would need to check its own constitution to ascertain if Mr Downey had the power to sign off on such a deal.

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