‘Solo career’ beckons for ex-horse director

Irish Thoroughbred Marketing’s former chief is making a fresh start after his wife’s deals saw him resign, writes investigative correspondent Conor Ryan

THE resigned chief executive at Irish Thoroughbred Marketing (ITM) has set up as a consultant to the customers he once handled on behalf of the semi-state company.

Michael O’Hagan, in an email to family and friends after his resignation from Horse Racing Ireland, said he had embarked on a “new start”.

“So the date July 1st 2012 saw the official registration of Michael O’Hagan as a sole trader etc while after a month of pulling and shoving, cleaning and painting, I opened my office here at home in Fethard where any of you will always be welcome should you ever venture into South Tipperary,” he said.

And he described the opportunity he had spotted. “As for me, I am now enjoying the freedom (and fear!) of embarking on a solo career. Thankfully in the few short weeks that I have been solo, I have had a tremendous amount of support from some great friends. My family have as ever been superb.

“And so to the future. I have set myself up as a consultant to the international bloodstock community and have to date been asked to assist in a variety of projects, some short term and more long term. In fact I have been overwhelmed by the variety of these projects which have crossed my desk.”

Nowhere in his email did Mr O’Hagan mention the circumstances that led to his resignation.

This happened after his wife, Josephine O’Hagan, benefited from private deals organised with Chinese clients who had been brought to Ireland by ITM. Mr O’Hagan had already been warned about his conduct, following anonymous correspondence to HRI.

However, when the behaviour continued his employers forced the issue. The details of the second bout of deals were not documented by HRI or released under the Freedom of Information Act. However, the original deals, which sparked concerns, were made available.

These show Ms O’Hagan was facilitated in making pitches directly to Chinese agents. She was included in organising emails for the visits of Asian delegations to Ireland. And she was provided with opportunities to bring the clients to private sellers.

The niche in the market existed because in China showjumping and eventing are established sports while horse racing had no traditional foothold. Ms O’Hagan wanted to become the contact point for this sport horse spin-off.

Internal correspondence shows Ms O’Hagan communicated directly with clients and was assisted in making a pitch to be the sole agent for the Chinese national team.

Hosting the Chinese clients was important to ITM and in 2011 it paid €16,176 on meals, hotels, and entertainment. Transport bills came to €2,206. The interpreter charges were €5,371 and €10,400 was spent on travel assistance for these customers. The total outlay for ITM to pitch to the Chinese market was €14,272 in 2010 and €51,919 in 2011.

Ten delegations visited Ireland between May 2011 and May 2012 and generated business worth €1.65m.

According to a brief prepared by HRI these groups bought 44 thoroughbred racehorses and 18 showjumpers. The documents do not show the number of horse sales which the O’Hagans organised or the money they earned.

However, in October last year a Chinese delegation, hosted by ITM, left Ireland having bought 13 thoroughbreds and six sport horses.

Ahead of this visit, ITM’s marketing executive, Caroline Kennedy, put the plans in place for the delegation.

As part of this, it was arranged that Ms O’Hagan would have use of a rented Ford Galaxy for three days with four Chinese buyers to independently look at sport horses.

The delegation was in the country for 10 days. The buyers spent three days looking at thoroughbreds with ITM and three with Ms O’Hagan. The costs were borne by ITM.

This followed direct requests by Michael O’Hagan that his wife look for non-thoroughbred animals for his clients.

In one email to a Chinese interpreter, it was pointed out that O’Hagan had asked his family to follow up on a request to find four or five three-day event horses.

Following the October visits the board of ITM queried the type of horses the Asian clients were interested in.

And a number of members of ITM’s board expressed concern that they had not been aware that the customers had been visiting.

However, Brian Kavanagh, the HRI chief executive, defended the work and said it was a tough balancing act. Mr O’Hagan told the committee his team would do whatever it could to facilitate the market.

“[Mr O’Hagan] advised that it will be 12 to 18 months before the rest of the world catch up on ITM’s foothold in the Chinese market, therefore for this period ITM will help Chinese clients in whatever way they can,” he said.

Irrespective of the acceptance by the board of the points he made at this stage, and his subsequent promotion, it all fell asunder when another deal in March came to light. This involved another sport horse where Ms O’Hagan acted as a conduit. HRI acted immediately and began disciplinary proceedings. Mr O’Hagan resigned shortly afterwards.