HSE says findings of audit into secret payments at St John of God ‘quite shocking’

The findings of a HSE audit into secret payments of millions of euro to a group of senior managers at the St John of God organisation were "quite shocking", a senior HSE official has said.

Dr Geraldine Smith of the HSE's internal audit division, who carried out the investigation, said the St John of God order had behaved with "a complete lack of candour".

The Irish Times reported on Friday that a draft HSE internal audit had discovered €6.24 million was paid to a group of senior managers at the charity, including lump sum payments of €1.85 million, over a period of years.

The audit found the lump sum payments were made after the Vatican instructed the St John of God organisation to deal with potential outstanding liabilities in advance of a planned restructuring.

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Dr Smith told RTÉ's News at One that new rules introduced in 2013 laid down all such publicly funded organisations had to be in full compliance with Government pay policy, but St John of God had failed to do so.

She said the secret payments had come to light only as a result of a whistleblower last year. “It was only because of the whistleblower, detailed analysis and interrogation that we found these details.”

When asked if the order had been “straight” with the HSE, Dr Smith said “No”.

Public servants

The St John of God Community Services is a public service organisation, technically known as a Section 38 body. Its staff are considered to be public servants and it is governed by Government public service pay rules.

Dr Smith said the St John of God organisation had been paying salary top-ups to senior mangers at least as far back as 1986. She said additional payments to managers identified in the internal audit ranged from €23,000 to €107,000 per annum.

Minister of State for disability issues Finian McGrath said he was aware the HSE was engaged in an internal audit of the pay structures within St John of God and an external review to examine governance arrangements in Section 38 service providers.

A spokesman for the Minster said: “While progress is ongoing on both fronts, both St John of God and the HSE need to be afforded the space to bring these discussions to a conclusion.

“The Minister understands that the final audit report is soon to be completed and, as per due process, he hasn’t seen the draft report. Minister McGrath wishes to make it absolutely clear that as far as he is concerned, where taxpayers’ money is allocated to disability services the highest standards of governance are expected.”

The trade union Siptu described as "disgusting" the revelations that senior managers at St John of God received secret payments. Siptu health division organiser Paul Bell said the union had no confidence based on previous experience "that anything will be done about it [the payments] or that anyone will be held accountable".

Siptu mainly represents lower paid workers in the health service.

Apologies

The St John of God organisation apologised on Thursday night for any hurt caused by the issues raised in the audit but said it did not believe it had deliberately misled the HSE at any point.

“We do acknowledge, based on the draft review, that the HSE will take a very critical view of the payments to managers in 2013 and other non-compliances with public pay policy. While we accept that is the view of the HSE and fully appreciate, at a time of austerity, the negative perceptions arising out of such payments, we reiterate that the payments were made in good faith following independent professional advice received by the Order, to discharge a possible future pension liability. We do not believe that we have deliberately misled the HSE at any point.

"The Order and Community Services, while recognising the significance of the review process, continue to be focused on the provision of services to over 8,000 children and adults in centres around Ireland, with a range of needs including intellectual disability, mental health difficulties and problems associated with getting older. This work is supported by 3,000 staff and volunteers. Since 2013, the Order has provided direct funding in the amount of €16 million, in support of the work of community services."