Children’s Health Ireland took €30k from contractor to cover cost of staff party

Comptroller and auditor general, Seamus McCarthy (pictured), said: 'It raises a concern about decision-making.' File photo: Sam Boal/RollingNews.ie

Children’s Health Ireland has been asked to explain why a contractor provided it with €30,000 for a Christmas party.

The Dáil's Public Accounts Committee (PAC) heard the money was received in 2022 from a concession holder, not declared in annual accounts, and was only given back in 2025 when questions were raised about the money by Comptroller and Auditor General (C&AG) Seamus McCarthy.

Mr McCarthy told the PAC that “from memory”, the €30,000 was the only sum of money held in a bank account.

CHI has had a number of scandals in recent years, including lengthy scoliosis waiting lists and the use of unauthorised non-medical springs in children’s surgeries.

At Thursday’s PAC meeting, TDs discussed CHI’s 2024 accounts, with the C&AG drawing attention to the fact that CHI accepted a “financial contribution of €30,000 from a concession holder towards the cost of a staff party that was held in 2022”.

“The related hospitality expenditure was not disclosed in the 2022 financial statements, and the funding was not recognised as income,” Mr McCarthy said.

“The unreleased funding was returned to the concession holder following a query during the 2024 audit.”

Mr McCarthy told PAC members that the payment “seemed to have been a one-off”. He noted that queries were raised about the “propriety of accepting contributions from a concession holder”.

“That muddies the waters in terms of the competitiveness of the award procurement,” he said. “It raises a concern about decision-making.”

Social Democrats TD Aidan Farrelly said that questions had to be answered about who the vendor was, who asked for the money, and why it remained in the account.

“This only came to light because of the C&AG asking questions, which is baffling,” he said.

Fine Gael TD Joe Neville said the payment was a conflict of interest, as the vendor was in a contract with CHI.

In response, Children’s Health Ireland issued a statement disputing some of the claims made at the PAC. 

"Children’s Health Ireland can confirm that, a payment of €30,000 was received in 2022 from a vendor in relation to a proposed Christmas event," the statement said.

"This money was reported as a line item in deferred income, in CHI’s account, and not in a separate bank account as has been reported. This matter was subsequently identified through the annual audit of financial statements and management brought the issue for review to our Audit and Risk Committee.

"Following this review, and in consultation with the Board, the CEO Lucy Nugent determined that the appropriate course of action was to return the full amount to the vendor. This was actioned...

"CHI is committed to full transparency in this matter."