Console chief Paul Kelly resigns after funds controversy

British regulator considers investigation of suicide charity as Foreign Affairs seeks further details

The founder and chief executive of Console, Paul Kelly, has resigned following controversy over funds governance at the suicide charity

The founder and chief executive of Console, Paul Kelly, has resigned following controversy over funds governance at the suicide charity.

The board of Console said on Thursday night it has accepted Mr Kelly’s decision to step down and announced the appointment of forensic accountant Tom Murray and David Hall to review the issues raised in a recent Health Service Executive (HSE) audit and an RTÉ investigation of the charity, being broadcast on Thursday night.

“The external reviewers who have no previous connection with Console will engage with the HSE and will be provided with full and unrestricted access to Console’s premises, staff, files and records and may use external advisors and/or accountants for the purposes of their review,” the board said in a statement.

The reviewers will report within 60 days and their recommendations will be acted upon, it said.

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Mr Kelly’s wife Patricia has resigned as a director, as has Joan McKenna.

The board of Console said it very much regretted the causes of the controversy that affect the organisation at present. “Console is determined to do whatever it takes to address all of these issues and to undergo a process of total governance change and renewal to ensure that the important work of the charity in caring for people affected by suicide is continued and strengthened.”

The HSE, which provided more than €2.5 million to the organisation over recent years, is expected to review funding arrangements within the next few days on foot of the highly critical internal audit. The 229-page internal audit is contains 89 recommendations.

The Department of Foreign Affairs is to commission its own audit into Console’s UK operation, which received about €130,000 over recent years under the Government’s support programme for emigrants.

The charity’s latest application for funding from the department has been put on hold.

There was concern in Government on Thursday night that services provided by Console to people affected by suicide had to continue despite the controversy engulfing one of the main charities operating in the sector.

Minister for Health Simon Harris said his priority as well as the Government's priority was "to ensure the continuity of services in relation to counselling, particularly in relation to bereavement counselling".

Console is also facing a potential investigation from charity regulators in the UK.

The Charity Commission in the UK said on Thursday night: "We are aware of allegations of financial mismanagement and poor governance made against a charity registered in the Republic of Ireland which is a parent charity for Console Suicide Bereavement Counselling Limited, which is registered with the Charity Commission in England and Wales."

“The Commission is assessing these concerns to determine whether there is a regulatory role for the Commission regarding the charity’s operations in England and Wales.”

RTE on Thursday night in a special Prime Time report alleged that Console founder and chief executive Paul Kelly had received director payments totalling €215,000 between 2010 and 2012 in apparent breach of company law and Revenue regulations.

The director payments were clearly stated in the audited accounts of the charity but were not listed in altered versions of the accounts submitted to funders. Six different sets of accounts for 2012 are in existence, it is claimed.

Mr Kelly said the accounts provided to funders were “draft accounts” and added that he fully denied “any assertion of intentional wrongdoing on the part of Console, the CEO and/or directors”.

Concerns about Console’s governance, including its accounting, go back as far as 2006, according to the programme. In 2009, an official from the National Office of Suicide Prevention wrote that the accounts were “not accurate” and were not signed off by the chairman of the board.

The Irish Times understands that in 2009 the HSE put in place a cap on funding for Console and would not agree to approve application for additional money on foot of concerns raised at the time.

Funding from the HSE did increase significantly from 2013; the HSE said this was as there was “an urgent requirement for Console to take over an important suicide helpline.”

“It is important to emphasise that the increased funding was specifically for the helpline and was provided subject to Console agreeing to allow a robust review processes. It was through this review process that NOSP had concerns raised and that led to the establishment of the HSE internal audit.

The RTE programme also alleged that Mr Kelly represented himself as a Catholic priest when seeking funds for a charity with which he was involved in the 1980s.

Mr Kelly said he was involved in setting up a new religious congregation at the time.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent