The cost to scandal-hit charity Bóthar of identified alleged fraud and related legal and other costs has amounted to €713,058 over a three-year period.
The first set of accounts to be approved by the directors of the Limerick-based Bóthar in almost four years document the financial cost to the charity of the identified alleged fraud perpetrated.
The newly filed accounts for 2020 and 2019, approved by directors on Monday of this week, show that the cost of the identified alleged fraud over 2020, 2019 and 2018 totals €365,558.
The directors caution that these amounts do not reflect the full extent of what the directors believe to be the value of the alleged fraud.
The accounts also reveal the legal and other costs bill totals €347,500, incurred in 2020.
The directors estimate the cost of identified alleged fraud in 2020 was €52,354, €187,768 in 2019 and €125,436.
The accounts also reveal that in January 2022, in order to prop up the charity’s finances, it realised a net €552,280 from the sale of a former office premises in Dublin.
The board has also disposed of shares held, to help fund the legal and other costs “and thereby secure the continuance of the company”.
In addition, the board has undertaken remedial actions including a reduction in Bóthar staff, payroll costs, overhead and running costs.
Ongoing investigations
Bóthar’s activities include aiding poor farmers in developing nations through donations of livestock. The accounts show that in his report, independent auditor, Damian Gleeson of Grant Thornton, has provided a ‘disclaimer of opinion’ on the financial statements.
Mr Gleeson explains “we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements”.
He states that “despite full cooperation from the current board members and the new CEO, it has not been possible to furnish us with all the information and explanations, which we consider necessary for the purposes of our audit”.
In his report, Mr Gleeson states that "there are ongoing investigations into the various activities by the former CEO's over a substantial number of years".
He said that "the actions of the former CEOs remain the subject of both criminal investigation and civil litigation whereby the outcomes of these investigations are not known at this point".
He said that the Charity Regulator Authority (CRA) has also commenced a separate investigation into these matters and the ultimate outcome of these matters cannot presently be determined.
Mr Gleeson also provides a disclaimer of opinion on the company’s ability to continue as a going concern.
High Court action
The alleged misappropriation of funds at Bóthar first came to public attention in 2021 through Bóthar taking High Court injunction proceedings against its former CEO, David Moloney.
Alleged irregularities first came to light in Bóthar during the 2019 financial year from an anonymous whistle-blower concerning inappropriate travel expenses.
In the High Court, David Moloney, who resigned as CEO in February 2021, said he and the former chief executive, the late Peter Ireton, misappropriated hundreds of thousands of euro in cash.
Mr Ireton, one of the founders of Bóthar died in his home in April 2021. Mr Ireton had denied any impropriety.
Mr Gleeson said that due to the nature of the alleged fraudulent activity, it has not been possible to determine if the €52,354 total for 2020 and €187,786 for 2019 is the full extent of the misappropriated funds during those two years.
Bóthar today has a revamped board, recording seven resignations since October 2020 and five new appointments in 2022.
In their report, the directors state that they committed to and have affected changes in the organisational staffing and procedures to ensure the highest fiduciary standards going forward and transparency with all stakeholders on the changes made in response.
The directors state that “the various matters” have involved substantial costs in pursuing and admit that “these matters have damaged the reputation of the charity in the eyes of the public at large and damaged trust for loyal supporters and partners”.
They state: “Despite challenges faced the board have continued to carry out the mission on which the charity was originally founded throughout the period.”
The charity recorded a loss of €149,028 in 2020 after its income slumped by 25 per cent from €4.6 million to €3.44 million.
On the charity’s going concern status, the accounts state that the extent of the identified alleged fraudulent activities when viewed over the historic years "has been significant".
At the end of June 2020, the charity’s total funds amounted to €1.29 million while its cash funds totalled €697,310.
