Legal questions dog €2m settlement with ex-IFA boss Pat Smith

It is not yet clear yet whether former general secretary Pat Smith's severance package from the IFA stands up legally.

The package is understood to be made up of a lump sum of €1m, plus an annual payment of €100,000 for the next 10 years.

Last night, Pat Smith (pictured) said he wanted half the money donated to charity, but the IFA said nothing could be done with the cash until legal issues were ironed out.

Chief executive and chairman of The Agricultural Trust Matt Dempsey said the settlement may not stand up.

"The core element is going to be does the settlement stand up, because it was not signed off by the treasurer (Jer Bergin) and the deputy president. This is going to be the key legal question," he said.

"If it stands up, Pat Smith will get his money. Acting president Tim O'Leary is very clear that the €2m is not going to be paid (and) will be contested fully, so that's going to be a matter for the courts."

It is also understood that while the IFA’s solicitors were in contact with former president Eddie 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.

Additional reporting by Noel Baker, Read More: the Irish Examiner.