New Rehab chief executive to receive €140,000

The next chief executive of the Rehab group will receive a salary of around €140,000 a year, it has emerged.

Management consultant Eddie Molloy, who has been appointed to carry out a root and branch review of governance in the organisation, said a new chief executive to replace Angela Kerins as well as a new board would be appointed shortly.

Speaking to Marian Finucane on RTÉ Radio he said a new chairman of the Rehab group would be announced in the week ahead.

He said a nominating committee was looking at other potential members of a new board including people with expertise in areas such as property, the recovery of reputation and finance.

He also said the organisation next week would sign off on “gold standard corporate governance” to apply in Rehab in the future. He said this would deal with issues such as conflicts of interest, the taking of gifts and full disclosure.

Mr Molloy said that the the ball-park figure of €140,000 salary which the organisation had in mind for the next chief executive was in the same zone as pay levels in the biggest chairities in Ireland.

He said he believed the figure was fair. He said the organisation wanted to attract somebody with a track record who would be able to restore not only the fotunes of Rehab but also of the sector which had been damaged by recent controversies.

Ms Kerins announced in April that she was resigning as chief executive of the Rehab Group citing the toll the controversy surrounding the charity group had taken on it and also on her personal life.

The Rehab group had been at the centre of controversy over recent months and an investigation by the Dail Public Accounts Committee in relation to how more than €80 million in State expenditure was spent.

Ms Kerins and her predecessor as Rehab chief executive, Frank Flannery, had both been at the centre of controversies surrounding executive pay levels and consultancy fees at the charity.

Ms Kerins initially refused to disclose her salary, but after sustained pressure the group disclosed that it was €240,000 per annum.

Similarly, the Irish Times reported earlier this year that Mr Flannery had invoiced the charity group for over €70,000 in a year for lobbying the Government in relation to the lottery it operated and on other matters.

Mr Flannery, a long time adviser to Taoiseach Enda Kenny, resigned from his voluntary positions in Fine Gael and also relinquished his Oireachtas pass.

In a message to staff several weeks ago the out-going chairman of the Rehab Group, Brian Kerr described the Board's response to recent political and public demands for information as inadequate: "We recognise that as a board we have not exercised strict and appropriate oversight of certain issues which have come to public attention in recent weeks. The board's priority now is to initiate a programme of transformation and change which will allow us to candidly confront the issues before us and to rebuild the reputation, staff morale and effectiveness of the organisation."