Former CEO of Peter McVerry Trust Spent €350,000 on Unusual Upgrades

The former CEO of the Peter McVerry Trust (PMVT) allegedly authorized expenditures of €350,000 for a driveway, lift shaft, and a peacock enclosure at a homeless shelter in County Kildare. This revelation emerged during a session of the Public Accounts Committee held on Thursday. The upgrades were made at Kerdiffstown House, located near Naas, while the organization faced significant financial challenges under the leadership of then-CEO Pat Doyle.

During the committee meeting, Francis Doherty, who briefly succeeded Doyle as CEO in 2023, provided critical insights into the organization’s financial state. He informed the committee that the annual budget for Kerdiffstown was €1 million, alongside an additional €125,000 for service level agreements. These financial details only came to light when he assumed the role of CEO in June 2023 and reviewed the organization’s invoices.

The PMVT, one of Ireland’s leading providers of homeless services, ultimately required a substantial €15 million bailout from the State after its financial situation deteriorated drastically due to years of underbidding on housing contracts deemed inappropriate. Doherty expressed his shock at discovering the trust’s financial obligations shortly after taking over, stating that the organization owed €18 million to various creditors while having only €437,000 available across its bank accounts.

Doherty highlighted that two bank accounts, designated for social housing, had been significantly depleted. Approximately €1.5 million had been transferred in December 2022 to two companies—Rubicon and New Directions. Notably, New Directions, which received €350,000, is managed by PMVT’s former auditor, and Doyle had intended to work there following his departure from the trust.

The committee learned that Doyle remained on his CEO salary for two months after resigning in May 2023. This decision was made to ensure he could address inquiries regarding the charity’s administration, despite Doherty officially taking the helm. Notably, in the final hours of Doyle’s tenure, he applied for a loan between €4 million and €5 million from a major bank to support the organization’s cash flow, although the loan was never actualized.

Doherty emphasized his initial trust in the board’s claim that the charity was in robust financial health. He stated that he had no cause to doubt this assertion, given the board’s extensive experience. However, he later realized that he had been unaware of the significant cash flow issues, which were obscured by multiple layers of management during his previous ten years with PMVT.

The ongoing scrutiny of PMVT underscores broader concerns regarding financial management within charitable organizations in Ireland. As investigations continue, the implications of these revelations raise critical questions about transparency and accountability in the sector.