Former Peter McVerry Trust CEO to Reveal to PAC Charity’s €18 Million Debt and Financial Chaos
Francis Doherty, the former CEO of Peter McVerry Trust, will unveil troubling insights about the charity’s financial state during an upcoming meeting with the Public Accounts Committee (PAC). He claims that the previous assurances about the organization’s financial health were grossly misleading. On his first day as CEO, the charity owed approximately €18 million to various creditors and had just €437,000 available in its bank accounts.
Financial Disarray During Transition
Doherty, who held the CEO position for just over four months, plans to highlight the severe financial challenges he faced. He reports that the trust had no cash reserves and only €125 in a sinking fund. Moreover, all restricted funds raised for specific purposes had already been spent, despite an expectation of over €5 million in these accounts.
Background of Financial Turmoil
The trust, founded in 1983 by priest Peter McVerry, allegedly sunk into financial chaos due to a decade of mismanagement. During this period, the charity consistently underbid essential services, resulting in substantial deficits for nearly all operations, barring a few funded areas.
- Outstanding debt: Approximately €18 million
- Cash on hand: €437,000
- Sinking fund balance: €125
- Expected restricted funds: Over €5 million
Ongoing Financial Oversight Issues
Despite two years of scrutiny from various bodies, including the Department of Housing and external auditors like PWC and Crowe Ireland, the trust’s finances remain unresolved. Doherty indicates that the scale of financial chaos he encountered is alarming, especially considering the involvement of multiple oversight authorities.
Criticism of Governance and Priorities
In his statements, Doherty will criticize the trust’s board for putting self-interest ahead of the organization’s wellbeing. He contends that the board, led by chair Deirdre-Ann Barr, chose to prioritize payments to legal and PR firms rather than address the mounting debts owed to smaller businesses.
Doherty’s critique extends to the Charities Regulator, questioning why independent trustees were not appointed to protect the charity’s services and stakeholders after issues were raised. His testimony is part of a broader examination of the Peter McVerry Trust’s recent operational failures.
As the PAC meeting approaches, stakeholders from various sectors, including the current chair Tony O’Brien, are expected to weigh in on the ongoing crisis facing the trust, which specializes in homeless services.
