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Irish Times
11 hours ago
- Business
- Irish Times
Peter McVerry Trust tells PAC it will not attend hearing
The Peter McVerry Trust has again rejected a request to appear before a powerful Dáil committee for a public hearing on its €15 million State bailout. The Committee of Public Accounts (PAC) had asked the charity to attend Leinster House on Thursday to discuss a report on its financial troubles by the Comptroller and Auditor General (C&AG), the spending watchdog. The meeting comes after serious governance failings by the trust came to light in investigations by two State regulators. This is the trust's second such refusal. It declined to attend the PAC in early 2024 because investigations were ongoing. READ MORE The charity established by Jesuit priest Fr Peter McVerry received just over €140 million from State sources between 2019 and 2022, the last year for which figures are available. [ Dublin hotel bought for €6.24m by McVerry Trust vacant since 2022 Opens in new window ] Responding to questions, the trust said it was not 'at this time' in a position to attend the PAC and still awaited completion of financial accounts for 2023. The C&AG report found the trust wanted the State to fully fund its services in the future. The previous financial model assumed 70 per cent State income and 30 per cent from fundraising. The report also said the Department of Housing had incurred €1.56 million in costs for 'professional fees' in relation to the McVerry trust. Such spending was in addition to the €15 million rescue package. In a letter to the PAC, the McVerry charity said the comptroller's document was 'accurate and the committee can be assured that the trust has nothing to add to it at this stage'. The charity was 'deeply appreciative' of financial support from the department and other funders, it said. Fine Gael TD James Geoghegan , a PAC member, said the refusal to attend was not acceptable, adding that the trust should reconsider. 'The reasons previously given for not attending the PAC committee was because of outstanding investigations which are now complete,' he said. 'Now the explanation is that they have nothing further to add, but this could have been an opportunity to help rebuild trust.' Asked about its refusal to attend, the trust held out the prospect of a PAC appearance when the 2023 accounts are released. 'Once these audited accounts are available, they will be published and we will share relevant information with our stakeholders and the public as appropriate, including making representatives available for the appropriate Oireachtas committee in due course,' it said. 'We remain fully committed to the ongoing reform and restructuring within our organisation. We continue to work intensively with our funders and regulators to ensure full regulatory compliance and to secure long-term financial sustainability.'
Irish Times
27-05-2025
- Business
- Irish Times
Dublin hotel bought for €6.24m by McVerry Trust vacant since 2022
A Georgian hotel in central Dublin earmarked for homeless services has lain dormant for more than three years after the Peter McVerry Trust (PMVT) acquired it for €6.24 million with public money. The fate of the former Latchford's hotel on Baggot Street remains uncertain after prolonged PMVT turmoil over lax governance and financial controls. Ireland's largest housing and homeless charity struck a deal with the Government in 2023 for a €15 million bailout, but it is still struggling to overcome the legacy of its crisis. In April, former HSE chief Tony O'Brien became chairman of the body established by Jesuit priest Fr Peter McVerry. Fr McVerry will leave the board in June, after 41 years. READ MORE Monitoring experts from housing regulators remain in place in the PMVT, whose 2023 financial statement is long overdue but likely to be published next month. DCC and PMVT are in discussions about a number of its capital assets that it is not in a position currently to advance Latchford's is in two adjoining four-storey buildings opposite the headquarters of the Department of Health, in the core business district of the city. The redbrick building is a protected structure, with any structural change subject to special controls. Owners are required to prevent such buildings from becoming endangered. Latchford's was put up for sale in February 2021 at the height of the coronavirus pandemic with a €5 million price tag. The next year, Dublin City Council (DCC) provided €6.24 million in capital assistance scheme (CAS) funding to the PMVT to buy the hotel. [ What went wrong at the Peter McVerry Trust and why did it need a €15 million bailout? Opens in new window ] Such funding is a form of mortgage loan issued via local authorities to housing bodies such as PMVT. DCC retains a legal charge over the property, meaning the trust is not free to deal with or dispose of it without council consent. 'DCC and PMVT are in discussions about a number of its capital assets that it is not in a position currently to advance,' DCC said. The trust aimed to use Latchford's for temporary homeless accommodation, but faced planning difficulties. Ireland's largest housing and homeless charity struck a deal with the Government in 2023 for a €15 million bailout, but it is still struggling to overcome the legacy of its crisis In 2021, DCC planners told PMVT that continued hotel use was exempt from the need to seek planning permission. Two years later, however, planners said permission was needed to use residential units as short-term lets. Asked whether DCC consulted its planners before funding PMVT's purchase of the property, the council said it did: 'The advice was sufficient to support the CAS acquisition by PMVT.' Citing 'financial constraints', PMVT said it was unable to proceed with its plans. 'As a result, the property has remained vacant while alternative solutions are being explored,' it said. 'Some work was undertaken on Latchford's Townhouse and Boutique Hotel to make it safe, but no major renovation was undertaken.' John Kinsella, a security equipment supplier, said his company Accura worked on the hotel site for two months on computer networks, electric gates, access control and CCTV. Accura was still owed about €35,000 for such work, Mr Kinsella said, adding that €215,000 was due for separate work for PMVT and subcontractors. 'For a small business, this is devastating,' he said. The redbrick building is a protected structure, with any structural change subject to special controls Solicitors for a PMVT subcontractor, which has initiated legal action against the trust, did not answer questions. Mr Kinsella said new fridges and satellite TV sets were installed in Latchford bedrooms before work stopped. 'At this point, three years on the warranties would have expired on all that equipment,' he said. There was no PMVT response to comments from Mr Kinsella. He has raised concerns with the Dáil public accounts committee and the Approved Housing Bodies Regulatory Authority (AHBRA), which oversees the trust. Asked about the delayed financial statement, the AHBRA said it 'awaits the finalisation of PMVT annual accounts for 2023, which are a critical foundation from which the organisation can demonstrate its commitment to regulatory compliance'.
