HEALTH SERVICES
€740,000 pension package for former CRC chief
January 16, 2014
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The former Chief Executive of the Central Remedial Clinic (CRC), Paul Kiely received a pension package of €740,000 which was paid out of public donations to the charity, the Friends and Supporters of the CRC, it was confirmed today.
His successor as CRC CEO Brian Conlan, told the Dail Public Accounts Committee today he did not know these funds were being used for Mr Kiely's pension. The new figure revealed today was over €540,000 more than Mr Kiely revealed to the PAC in December.
The HSE has now confirmed that Mr Kiely received a €200,000 tax-free lump sum and a €273,336 taxable lump sum. In addition, €268,689 was paid to ensure Mr Kiely's pension/lump sum benefits would not be less than if he had continued to remain on as chief executive until 2016.
PAC member Deputy Kieran O'Donnell said the CRC had used money raised from public donations as a 'slush' fund' to make payments to Mr Kiely's pension scheme. He said the payments were an affront to the people who had collected money for the CRC.
He said he was 'astounded' by this revelation about the level of funds used for Mr Kiely's pension, which were not revealed when Mr Kiely previously appeared before the CRC last month.
Mr O'Donnell said it 'stretched credibility' that Mr Conlan, when he was CEO, did not know about this newly-disclosed money paid to his predecessor. The package was approved by the board of the CRC in February 2013.
Mr Conlan was on the board of the CRC at the time, and took over as CEO in July of last year - he resigned in December.
It was previously revealed that Mr Kiely received a pension lump sum of €200,000 and is set to get an annual pension of nearly €100,000.
Mr Kiely is to be asked to come before the PAC again to explain these previously undisclosed payments.
The HSE said in the event of there being a loss to the CRC or the Friends and Supporters of the CRC are a result of these pension payments, that this loss be made good.
Mr Conlan explained to the Committee why he had earlier refused to appear before it.
He said he was not in a position to be an effective witness when first asked to appear before the PAC to answer questions on the salary top-ups controversy. He had been away on personal leave when the controversy broke and had been stressed by what had transpired, particularly the media coverage.
Mr Conlan was questioned by Deputy Shane Ross at the PAC today on his knowledge of the activities of a loss-making company CRC medical. Deputy Ross said the CRC was in a position to order wheelchairs and other medical devices from its related company CRC medical, and queried whether a conflict of interest did not exist in relation to this.
Mr Conlan said he would not have knowledge in relation to this.
He had became CEO of the CRC last summer, having previously been CEO of the Mater Hospital, and resigned from the CRC CEO post last month.
Mr Conlan said he had recently paid back €3,300 net to the HSE relating to salary top-ups he had received from charitable sources.
CEO of the St Vincent's Healthcare Group, Nicholas Jermyn, is also appearing before the PAC today.