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Investigation launched at Irish Horseracing Regulatory Board over 'grave' financial issue

The ‘bombshell’ admission was made to members of the Public Accounts Committee this morning.

IRISH HORSE RACING’s regulatory board has been hit by a financial issue described by its chief executive as of “grave” importance.

IHRB officials were before the Oireachtas Public Accounts Committee this morning but its chief executive Darragh O’Loughlin opened discussions with the revelation that its chief financial officer had gone on “voluntary leave” as of yesterday.

O’Loughlin told TDs and senators on the PAC that “within the past 48 hours I became aware of a grave matter”, but that while “preliminary facts” had been disclosed, he said he could not outline specifics of what has arisen.

An external review has now been commissioned to examine the issue raised.

The CFO, Donal O’Shea, who has worked for the IHRB since 2017, had been due to appear to discuss the accounts for the IHRB.

The board is the regulatory authority and falls under the auspices of Horse Racing Ireland. It employs 125 staff.

In the absence of details, TDs asked numerous questions around what the issue may involve.

“Under the circumstances, unfortunately, I cannot say anything that would prejudice any investigation that might take place,” O’Loughlin told Fianna Fáil TD James O’Connor who had raised concerns over the lack of information for the PAC.

“I recognise the deputy’s concerns and I recognise that we are funded by the taxpayer. I take that very seriously,” O’Loughlin said.

“I take governance issues very seriously and all of my conduct, since I took on this role has aligned properly [with that].”

He added that “disclosures have been made or are being made to all relevant authorities”.

Cork East TD O’Connor said that horse racing is receives significant funding from the taxpayer and warned that the review may cause “prolonged damage” to the board.

Asked whether it possible it may include a “criminal investigation”, the chief executive of Horse Racing Ireland Suzanne Eade said she was uncertain.

“I don’t know enough about it yet,” she said.

“Is there the possibility that public funds may have been misappropriated?

“I don’t believe so from what I’ve heard so far,” Eade said.

HRI chief executive Eade, told the committee that the issue was “very disappointing” and committed that the HRI will “leave no stone unturned” in its work on the financial issue.

“There’s an urgency to do this,” she said. “It wasn’t on my to-do list last week and it will be the only thing on my list now.”

Gordon Conroy, an official representing the Department of Agriculture, which funds the sector, told politicians that the issues raised were “financial in nature and caused some concerns”.

Conroy said Agriculture Minister Charlie McConalogue and the department’s secretary general were informed of the issue yesterday evening.

Green Party TD Marc Ó Cathasaigh questioned O’Loughlin specifically on whether O’Shea had asked “to take leave or was he asked to take leave?”

O’Loughlin told the Waterford deputy that he would “prefer not to answer that question as he believed if he did it “could prejudice an investigation that is yet to take place”.

He added that giving details “could give rise to opinions being formed” and committed to an independent review.

When Fianna Fáil TD for Dún Laoghaire Cormac Devlin said the issue was a “bombshell” for the PAC, the IRHB chief agreed with the description.

When asked by Dublin Fianna Fáil TD Paul McAuliffe whether it may pose a challenge to funds for the future, Eade said horse racing is a €2.5 billion industry and needs support.

“We have to protect it,” she said.

Written by Eoghan Dalton and posted on TheJournal.ie

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