Company loan was an honest mistake, says Gallagher

PRESIDENTIAL CANDIDATE Seán Gallagher has said the €82,829 loan from one of his companies that breached company law was an “honest mistake”, but he could not say exactly when the loan was repaid.

The Irish Timesreported yesterday the interest-free loan was recorded in the accounts of Beach House Training and Consulting Ltd for the year to the end of 2009, when the company had net assets of €114,320. Company law requires that no director's loan exceeds 10 per cent of a company's assets.

Arriving at the Ernst & Young Entrepreneur of the Year Awards at the Citywest Hotel, Saggart, Co Dublin, yesterday evening, Mr Gallagher repeated that the matter had been brought to his attention by his accountant last year and the money had been repaid.

“Well as soon as the accountant identified it, and I spoke to him last night, and he said as soon as that was identified, we rectified it within four weeks of the time and he was very clear that there was no breach of any company law regulation,” he said.

Asked if he was aware that the issue of illegal loans to company directors was highlighted in May 2009 by the Director of Corporate Enforcement Paul Appleby, Mr Gallagher said: “I’m aware of Mr Appleby’s comments”.

He said the “honest mistake” had been discovered by his accountant. “He found the error and as soon as it was brought to my attention we adjusted it, sorted it within four weeks, and he’s very clear, the accountant, as of last night, that there was no breach.”

Asked when the situation was rectified, Mr Gallagher said: “Whenever it was brought to my attention. I don’t have that date on me.” Later Mr Gallagher’s spokesman was also unable to give a date when the loan was repaid.

Earlier, speaking on RTÉ radio, Mr Gallagher said the loan “relates to a cheque that was lodged into the wrong account . . . And then the accountant treated it as a loan. When it was spotted, it was in fact moved back within four weeks . . . It was an accounting procedure really, in terms of what account it went into. “

Labour’s presidential candidate Michael D Higgins also attended the awards ceremony last night. Mr Higgins said he was “really not in a position to judge” Mr Gallagher. “He knows that best himself,” he added.

Mr Higgins said he thought “one should be as full in information as one can”.

Independent candidate Mary Davis, also attending, said every candidate should be “transparent and open”. She added: “Seán Gallagher or any other candidate has to answer for their own past, what I can do is answer for mine, and I have done that and been very transparent in doing it, so it’s up to each candidate.”

Mr Gallagher also commented on his role in a Fianna Fáil fundraising event held in Dundalk in 2008, which he said was not for the then taoiseach Brian Cowen but for the party.

“I did attend. I was a member in 2008 . . . and I’ve never made a secret of that. I was a grassroots member of the party, but I have to make it very clear I did not give a donation either in a personal capacity or even as a corporate donation either before, during or indeed after the event,” he said.

Mr Gallagher said he had not asked other people to give donations but had been asked if he would let local business people know that the event was taking place, which he did.

“But I collected no money.” He said he had “no idea” whether those who attended made a donation to the party or not. “That would be solely a matter for Fianna Fáil.”

Mr Gallagher was a member of the party’s national executive from 2009 to January of this year.

Mr Gallagher also explained that a problem with his back had caused him to cancel an event yesterday and said he was taking painkillers.

“I pulled a muscle last night lifting stuff because that’s the nature, I get stuck into things, and I did have issues with it this morning and I’m on some painkillers, but I’m as healthy as you are,” he told reporters.