Red Cross denies irregularities

The Irish Red Cross has said allegations of financial irregularities against the charity are “simply untrue and without foundation”.

David O’Callaghan, chairman of the organisation, said he was disappointed to see specific criticisms levelled at the society which were simply untrue. These included a claim that monies were diverted from the Haiti appeal of two years ago to other uses, a claim that the society was misrepresenting its assets, or that there were irregularities in its accounts.

Speaking at the Public Accounts Committee this morning, Mr O’Callaghan acknowledged that “for a time” the Red Cross did not keep pace with standards of best practice in relation to governance and oversight. However, it had recognised this weakness and had responded to it in a very substantial and convincing manner. Huge strides had been made in developing the society’s governance and supervisory framework.

These included a reform of its constitution, the introduction of codes of conduct, the establishment of an audit committee and a framework for control and oversight of branch finances.

Officials of the Red Cross were called to answer questions after members of the committee last year discussed allegations concerning corporate governance, including one that some €160,000 collected for those affected by a tsunami in Asia remained for a number of years in a bank account in Tipperary.