The cost to scandal-hit charity Bóthar of identified alleged fraud and related legal and other costs now totals €1.2 million.
That is according to figures contained in new accounts filed by the Limerick-based charity. These put the cost of the identified alleged fraud and connected legal costs at €490,878 for the 12 months to the end of June 2021.
This follows a combined bill of €713,058 over the prior three-year period.
In their report, the directors state that the matters relating to the alleged fraud “have damaged the reputation of the charity in the eyes of the public and damaged trust for loyal supporters and partners”.
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[ Former Bóthar chief admits taking hundreds of thousands from charityOpens in new window ]
The alleged misappropriation of funds at Bóthar first came to public attention through High Court injunction proceedings brought by Bóthar in 2021 against its former chief executive David Moloney. The accounts show that Bóthar’s income from donations plummeted by 41.6 per cent from €2.83 million to €1.65 million in the 12 months to the end of June 2021.
The estimated cost of the identified alleged fraud for 2021 was €28,025, bringing the total to €393,583 over four years. The directors caution that these amounts do not reflect the full extent of what they believe to be the value of the alleged fraud.
The latest accounts, which were approved by directors on Monday of this week, show that there have been “substantial costs” to the charity in pursuing matters connected to the alleged fraud.
The directors state that “with the viability of the charity at stake the board have taken measures to ensure that robust financial controls and good governance are in place across the organisation”.
The directors also state that “our intention is to recommence active fundraising once we have published our accounts and communicated clearly with stakeholders”.
The board states that the projected level of income for the first half of 2023 has been on target and it was confident in Bóthar’s ability to maintain and grow income levels.
The bulk of the €1.2 million bill to Bother from the alleged fraud is connected “legal and other costs”, which totalled €810,353 for 2021 and 2020.
According to its website, Bóthar works in five countries and has donated thousands of animals and supported struggling families in countries across Africa, Asia, South America and eastern Europe.
In the High Court, Mr Moloney, who resigned as chief executive 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 at his home in April 2021. Mr Ireton had denied any impropriety.
Independent auditor, Damian Gleeson of Grant Thornton, has provided a “disclaimer of opinion” on the financial statements.
