The HSE served an unprecedented two formal warnings on the Central Remedial Clinic (CRC) earlier this year regarding the appointment process for its new chief executive which it described as "highly irregular".
Confidential internal files seen by The Irish Times also show that at one point during the summer the HSE said it was considering suspending nearly €250,000 in funding as part of the row. The documents show that the CRC moved to appoint a replacement for its former chief executive Paul Kiely without official approval and in contravention of direct instructions issued by the HSE.
The HSE also expressed concern that there had been no external competition for the post of chief executive of the CRC.
It said instead Brian Conlon, a former CRC board member, applied and was interviewed as part of an internal recruitment process.
In a letter sent on November 13th to CRC chairman James Nugent, the HSE's regional director for performance and integration Angela Fitzgerald said that "the consideration of a former board member's application within an internal process is highly irregular".
She said it was clear that the requirement to secure prior approval from the HSE to the filling of senior posts was not adhered to by the CRC in advance of advertising and recruitment “despite written and verbal communication to you on this matter”.
Official Department of Health files obtained by this newspaper revealed Mr Kiely had been receiving remuneration of €242,865. This comprised a HSE-funded salary of €106,900 and a CRC salary of €116,949 and a separate CRC allowance of €19,016. The HSE has set a salary scale of €83,252 for the new chief executive.
The CRC told the HSE its chief executive salary would comply with official salary scales from October 1st.
The HSE served a performance notice, essentially a formal warning under its service agreement, on the CRC in July and a second in August as part of the row over the filling of the chief executive post. It said this was unprecedented in its dealing with any service provider.
A senior HSE official said it had effectively been told to “get lost” by the CRC.
The CRC has not answered any questions from The Irish Times.
