REBEL ONE51 shareholder John Hegarty, who is suspended as an executive with the business, told chief executive Philip Lynch last December that he felt the investment group was “doomed”.

In an e-mail sent to Mr Lynch on December 3rd, 2009, which has been seen by The Irish Times, Mr Hegarty said: “It appears from my experience in One51 that the company is run on fear, insincerity and ambiguity, permeating right through from the very top.

“Unless and until this culture changes, I respectfully suggest that this company is doomed.”

The three-page e-mail is highly critical of One51’s strategy in waste recycling and scrap metals – Mr Hegarty’s areas of expertise.

Mr Hegarty also said a large number of employees were “completely disillusioned and morale is at a very low ebb”.

“There is a complete lack of vision and leadership,” Mr Hegarty added.

Mr Lynch replied by letter on January 18th, saying he “completely and resolutely” disagreed with Mr Hegarty’s “assertions”.

Mr Hegarty and his business partner Tony Donlan sold Hegarty Metals to One51 in 2007 for €56 million in cash and shares.

Mr Hegarty received a cash payment of €22.5 million and 2.7 million One51 shares valued at the time at €5 apiece.

Mr Hegarty also spent €1.5 million buying 300,000 additional shares. He recently tried to sell his three million One51 shares for €2 each, but could not find a buyer.

One51’s shares traded this week on the grey market at €1.75 each.

Mr Hegarty was suspended by One51 on February 25th on full pay and is the subject of a disciplinary procedure.

In relation to his suspension, Mr Hegarty told The Irish Times: “This disciplinary action has been motivated with the aim of discrediting me simply because I had the audacity to raise serious concerns about the management of One51.

“Five months later, despite repeated requests by me to expedite this, there is still no finality to it.

“I will give the process the respect it deserves and await the outcome, and thereafter consult with my legal advisers to determine what, if any action, I should take at that stage.”

One51 declined to comment on the disciplinary process.

Mr Hegarty is also supporting the “Campaign for Change” being led by former One51 waste recycling executive Gerry Killen.

It is seeking to have three independent directors appointed to the board of One51 and is campaigning for a change in strategy and corporate governance to restore value and improve liquidity in the stock.

One51’s assets include investments in the waste industry, the Irish Pride bakery and a half share in Greenore Port.

It also has stakes in Irish Continental Group and infrastructure company NTR.

Mr Hegarty said he supports the “aims” and “motivation behind the campaign.

“The share price is in freefall. It has lost so much of its intellectual capital as a result of sidelining owner-founders of companies it not so long ago thought well enough of to pay a big price for. Grave and costly errors have also been made on certain investments/acquisitions that those best placed within One51 advised the company against.

“One51 has enormous potential but it has no choice but to implement change.

“Each and every shareholder is watching their investment devalue by the week and someone has to cry stop.”