Former CEO’s Lavish Spending on Charity Office Sparks Outrage

An investigation into the financial practices of the Peter McVerry Trust has revealed that former CEO Pat Doyle spent an excessive amount on a personal project while the charity faced severe financial difficulties. The maintenance of Kerdiffstown House, a stately home turned private office, cost approximately €1 million per year. This expenditure included an unauthorized private lift and an extravagant peacock enclosure, all while the charity struggled to remain solvent.

During a session of the Public Accounts Committee on October 10, 2023, current CEO Francis Doherty described Kerdiffstown House as a “vanity project” indicative of mismanagement. He stated that the property became a “symbol of what was going wrong” within the organization. Mr. Doherty took over the role for a brief period of four months amid a financial crisis that ultimately required a government bailout exceeding €15 million in 2023.

Kerdiffstown House, located in Johnstown, Co. Kildare, housed various animals including chickens, ducks, and two peacocks. Mr. Doherty expressed his disapproval of using the site as a service center, emphasizing that it should never have been sanctioned. The financial mismanagement was starkly illustrated by a question from Fianna Fáil TD Paul McAuliffe, who inquired, “Why would anybody donate money to the trust for a peacock enclosure?” Mr. Doherty concurred, labeling the expenditures as “indefensible.”

The former CEO allegedly ordered the installation of a private lift to avoid sharing facilities with other staff members, a decision that led to its demolition due to a lack of planning permission. Mr. Doherty disclosed that an additional €350,000 had been spent on landscaping, repaving, and widening the driveway.

Despite these lavish expenditures, Kerdiffstown House was meant to serve approximately 150 service users, although the site lacked the necessary planning approvals for such use. Fine Gael TD Grace Boland characterized the developments as a misuse of resources, while James Geoghegan expressed concern that the situation reflected “out-of-control spending” that tarnished the reputation of the organization founded by Peter McVerry.

The Peter McVerry Trust has since released its overdue financial accounts for 2023, reporting a write-down of €23 million in its property portfolio. Mr. Doherty, who departed after only four months in office, claimed that he was misled by the previous board regarding the charity’s financial situation. He noted that the organization was on the brink of collapse due to a history of underbidding on public contracts and accepting projects without adequate funding.

The financial crisis intensified as donations, totaling €15 million, were insufficient to cover the operational shortfalls. The current chair of the trust, Tony O’Brien, indicated that a financial crash was “inevitable,” agreeing with Deputy Geoghegan’s description of the trust’s previous financial management as akin to a “pyramid scheme.”

Mr. Doherty revealed that funds from a multi-million-euro donation intended for homeless property acquisitions were misappropriated to cover Mr. Doyle’s new salary at a private counselling company. He stated that while he was on leave, two crucial bank accounts were emptied, including €1 million from the Capuchin fund.

In a troubling turn of events, Mr. Doyle applied for an €8 million loan shortly before losing control over the trust’s finances. Mr. Doherty also highlighted that the trust lacked a director of finance until 2023, and when appointed, the director had no access to essential documents for six weeks.

Additionally, serious lapses in financial protocols were identified during the inquiry. Mr. Doherty detailed how specific contractors, including Rubycon, received more than €17 million for projects, with concerns raised about inflated invoices. He noted that conflicts of interest were never disclosed to the trust.

The committee session did not include Mr. Doyle, who had previously stated that he was instructed by the board not to comment publicly on trust affairs after stepping down. He confirmed that he cooperated fully with regulatory investigations conducted by both the charity and housing regulators.

As the Peter McVerry Trust navigates these challenges, the revelations surrounding its financial management serve as a warning about the importance of accountability and transparency in charitable organizations.