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Public Expenditure and Reform Minister Paschal Donohoe Leah Farrell

Explainer: Why is Paschal Donohoe still in hot water over political donation declarations?

The Minister is now due to make a further statement to the Dáil on Tuesday.

LAST UPDATE | 20 Jan 2023

FIVE DAYS AGO, Paschal Donohoe appeared at Merrion Square to make an apology over his failure to declare a donation of services to the ethics watchdog during the 2016 General Election campaign.

He told reporters that a complaint had been made against him to the Standards in Public Office Commission (Sipo), over the donation of services which saw six individuals being paid by businessman Michael Stone to put up posters for him during the 2016 campaign.

Then on Wednesday, he appeared in the Dáil to make a statement on the matter, where he detailed that Stone had bought Fine Gael ‘superdraw’ tickets from him in both 2020 and 2021.

However, that was expected to be the end of his pronouncements on the matter, as he told the Dáil he wouldn’t be commenting further to not have “any undue influence” on any process SIPO may undertake.

Then, on Thursday during a questions session, he confirmed that he was planning to make a further statement to the Dáil next week.

This has been set for Tuesday, with Donohoe due to first address the Dáil for 10 minutes before each opposition group has six minutes for a back-and-forth question and answer session.

What was initially expected to be a minor issue has ballooned and has dominated politics in Leinster House over the last week.

But how did we get here and what exactly has Paschal Donohoe done?

Election donation

The initial issue that began this controversy was the revelation that Donohoe had received an undeclared donation of services during the 2016 General Election campaign.

This donation of services was provided by six individuals, who worked to put up and take down election posters.

These services were provided over four days, with a company van also being used by the individuals hanging posters.

The donation itself was provided by businessman Michael Stone, CEO of the Designer Group engineering firm.

Donohoe said that he was initially unaware that the six people hanging his posters had been paid for their work, believing it to be voluntary. He added that he was also unaware of a company van being used.

However, he did tell reporters and the Dáil that he did become aware of allegations that a company van was being used in 2017.

He said he should have amended his election expense form “to the value of €140 to take account of the commercial value of a vehicle for the hours used” and added: “This was a clear mistake on my part and I acknowledge and apologise for that error.”

In total, Donohoe said that €1,057 was left unaccounted for in his declarations to Sipo, which is his valuation of the labour and use of the company van.

Under Sipo rules, all political donations over the value of €600 must be registered with the ethics watchdog, while politicians cannot accept a donation of more than €1,000 from an individual.

Meanwhile, any corporate donor making a donation over €200 in value, whether in money or as a service, must register with SIPO as a corporate donor.

Alongside the statement, Donohoe confirmed that he would be recusing himself from all decisions surrounding ethics legislation as well as responsibility for Sipo, which falls under his Department.

Superdraw tickets

The most recent revelation came from Donohoe on Wednesday, where he told the Dáil that he had sold Stone, who provided the labour and company van, tickets to the Fine Gael superdraw.

Speaking in the Dáil, Donohoe said that Stone “is a man of the very highest standards”.

He said that Stone had “made a donation to Fine Gael by the purchase of superdraw tickets which was sold by me”.

These superdraw tickets are essentially raffle tickets, with cash prizes available within constituencies.

Why all the fuss?

There have been questions asked by opposition parties, particularly over Donohoe’s assertions that the donations were made to the Fine Gael organisation in Dublin Central, rather than to him as a candidate.

Sinn Féin’s Pearse Doherty said that it was “laughable”, while Labour’s Ged Nash labelled it as a “red herring”.

Other TDs questioned Donohoe’s figures, with co-leader of the Social Democrats, Róisín Shortall saying that he had “reverse-engineered” the payments made.

She told the Dáil: “You seem to have gotten the deal of the century.”

“The six individuals working in three teams of two were paid a grand total of €1,100 euro for their efforts over four days. That’s approximately €180 euro each.

“Is there an invoice or a pay slip that can be produced to demonstrate that this was the actual amount that was paid?”

Shortall added that “we see all the signs of reverse engineering of the figures in order to fit in with the spending and donations limits”.

While this controversy has knocked some of the shine off the Public Expenditure Minister, it is not yet clear whether it will lead to his downfall.

However, if more questions than answers are raised on Tuesday, there may be choppy waters ahead for the Government.

Additional reporting by Christina Finn and Diarmuid Pepper

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41 Comments
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    Install the app to use these features.
    Mute Ablitive
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    Nov 24th 2014, 11:19 AM

    The European parliament is the one that should be broken up.

    291
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    Mute Dave J
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    Nov 24th 2014, 11:27 AM

    Excellent comment. Couldnt agree more.

    Google produce some top applications and services. If they dominate the market its due to forward thinking and innovation. Google shouldnt be slowed down, the rest need to catch up

    190
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    Mute Paul Maguire
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    Nov 24th 2014, 11:45 AM

    Dictatorship comes to mind

    81
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    Mute John Roche
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    Nov 24th 2014, 9:29 PM

    Totally agree. Other than feather their own nest I’ve never seen those idiots do anything over the past 30 years.

    37
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    Mute Thomas Roche
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    Nov 24th 2014, 11:37 AM

    Maybe its because its headquarters is in Dublin instead of Paris or Brussels.

    252
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    Mute Dermot Lane
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    Nov 24th 2014, 11:54 AM

    Well they can’t get at our corporation tax now, especially in view of the other news this morning, this is plan B

    76
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    Mute Michael Fehily
    Favourite Michael Fehily
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    Nov 24th 2014, 8:54 PM

    That’s exactly why the EU is trying to rock the Google boat Thomas..The Germans and French want a piece Dublin’s Google success..They can’t let the Paddies have success..

    58
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    Mute Dara O'Brien
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    Nov 24th 2014, 11:22 AM

    Overstepping the mark again. Antitrust legislation is supposed to protect us from entity’s abusing a position of dominance.

    somehow it now seems that no abuse is necessary, if a company gets big enough, the EU wants rid – even if it’s doing nothing wrong.

    It’s the ultimate penalty for success.

    174
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    Mute Dee4
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    Nov 24th 2014, 11:28 AM

    they did the same with Microsoft In the US back in the day , they only left them alone when Gates started giving all his money away. And somehow its ok to have state run monopolies like Irish Water foisted on us.

    114
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    Mute Diarmuid Danger Lenihan
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    Nov 24th 2014, 11:33 AM

    The same happened to standard oil.

    44
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    Mute Owen Gannon
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    Nov 24th 2014, 6:29 PM

    Which ironically made J.D. Rockefeller richer and more influential and powerful than he was with just the one oil company.

    #PoliticianLogic

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    Mute Diarmuid Danger Lenihan
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    Nov 24th 2014, 6:37 PM

    They reckon when he died in today’s money he’d be worth about $600 billion. Some going.

    20
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    Mute Rachel O' Meara
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    Nov 24th 2014, 11:24 AM

    I’m not going back to using Ask Jeeves!

    171
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    Mute George Orwell
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    Nov 24th 2014, 11:19 AM

    I would rather see the pseudo dictatorship known as the European Parliament, to be broken up

    167
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    Mute Uncle Mort
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    Nov 24th 2014, 2:23 PM

    Knowledge is power even if it comes via Google. The EUSSR is afraid of a population armed with the knowledge of it’s attempts to control them.

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    Mute Kerry Blake
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    Nov 24th 2014, 11:27 AM

    Google is more useful then the EU parliament. Scrap the parliament instead.

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    Mute Dee4
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    Nov 24th 2014, 11:21 AM

    any chance of unbundling the EU?

    107
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    Mute John Doyle
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    Nov 24th 2014, 11:28 AM

    Irish Water is also dominating the Irish Market should they not be broken up too?

    69
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    Mute Seán Gallagher
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    Nov 24th 2014, 12:21 PM

    What utter horsesh!t.

    Google have a position of major dominance for one reason – the superiority of the user experience that they offer.

    By forcing them to divest certain elements of their business, that user experience will be diminished. Thereby creating a market for new products and services which people currently don’t need or want.

    Google doesn’t stifle innovation, it encourages it. You wanna be the best – come up with an idea better than Google have.

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    Mute Paul Roche
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    Nov 24th 2014, 1:00 PM

    iOS?

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    Mute Seán Gallagher
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    Nov 24th 2014, 1:15 PM

    Isn’t a search engine, doesn’t provide streamed content like YouTube, doesn’t offer a social media experience, doesn’t sell ad space.

    Additionally, iOS is a handset and tablet operating system, which is only a minor part of Apple’s operation and is being whooped in the market by Android’s OS in terms of devices running it.

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    Mute Paul Roche
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    Nov 24th 2014, 1:27 PM

    Your last paragraph was about innovation, Sean.
    iOS is an innovation, it predates Android and will be shown in time to be the better platform.
    Liking DuckDuckGo as a search engine. The issue of privacy and what personal data Google collects and distributes about its users should be a huge concern for every democracy.

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    Mute Seán Gallagher
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    Nov 24th 2014, 1:49 PM

    Actually Paul,

    iOS was released first however, Android as a company (which predated Google’s purchase of it) was established 4 years before the first iPhone release.

    So yeah they beat Android to market, that doesn’t mean that they had all of the ideas first. Additionally, touchscreen phones had been around long before iOS, so I’m struggling to figure out exactly what you mean by iOS “is an innovation”.

    Your opinion on iOS notwithstanding, Android is by a huge margin the most popular smartphone operating system in the world and has been for years. iOS may be seen to be the better platform (by whatever nebulous criteria you wanna cherry pick to support that opinion). But there are two cold, hard facts about that fight:

    1. iOS depends on Apple hardware, which is significantly more expensive than almost every other manufacturer.
    2. Android already have the largest share of the market of any OS developer and it’s growing.

    20
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    Mute Uncle Mort
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    Nov 24th 2014, 2:26 PM

    duckduckgo is pi** poor and although I use it from time to time google is better when you don’t have all day to comb the results.

    15
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    Mute Paul Roche
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    Nov 24th 2014, 2:37 PM

    Mort,
    If you’re using a search engine in the first place it’s because you don’t know what you are actually looking for. It’s still early days for DuckDuckGo – but if you can’t see the advantage of not being tracked as you search, then perhaps you’re ok with sharing everything about yourself with the world.
    Yes Google offer YOU better search results – and that is because Google know what YOU are looking for before YOU do.
    Add in all your Android history and you can see why the EU is concerned.

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    Mute Seán Gallagher
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    Nov 24th 2014, 3:46 PM

    Paul,

    Not knowing what you’re looking for is only one of several different reasons for using a search engine like Google.

    Equally, some people don’t like the way DDG returns results (I would agree with them personally). Google on the other hand has a very comprehensive system using Boolean Operators etc. through the advanced search.

    Some people don’t care about their search history being stored, it doesn’t really bother me to be honest, but I agree that can be a concern. Still the numbers don’t lie, Android (and Google) are the preferred options for Smartphones, tablets and searching.

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    Mute Uncle Mort
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    Nov 24th 2014, 4:18 PM

    Android history? What’s that?
    I use specialised search engines to find scientific papers that I wish to read Paul,are you suggesting that I don’t know what I’m looking for? Perhaps I should use Divine Intervention instead?

    11
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    Mute Jason D'langer
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    Nov 25th 2014, 10:25 AM

    lads chumhum is the future. take my word for it

    1
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    Mute JustMade Ireland
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    Nov 24th 2014, 11:53 AM

    Google is great & shouldnt stand for this its done so much for the people, in todays world theres no need to be stupid anymore, dont know some thing google it.

    We should support google the eu has done good, but by the mainly destortying markets/ changeing policyes then years later bringing them back to improve that counrty.

    kraft foods own every thing now, why dont the eu break up them.

    46
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    Mute Leslie Skinner
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    Nov 24th 2014, 11:51 AM

    We should get out of the EU and take back control of our own country

    45
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    Mute Michael McBride
    Favourite Michael McBride
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    Nov 24th 2014, 1:56 PM

    Couldnt agree more. Attacking google? Google don’t force themselves on anybody. They simply have the best products so people use them. Its a crime to be successful now? Have a look at this please https://secure.avaaz.org/en/petition/Dail_Eireann_Stop_paying_all_debts_which_are_a_result_of_bailing_out_private_banks/

    15
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    Mute fergalreid
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    Nov 24th 2014, 1:02 PM

    “Alongside investigations over it allegedly favouring its own products and services ahead of rivals…”

    Heaven forbid.

    27
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    Mute Tracey Nally
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    Nov 24th 2014, 1:41 PM

    Is that not business?

    14
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    Mute Seth Cheffetz
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    Nov 24th 2014, 12:50 PM

    The EU will sue any successful american company it can because money!

    24
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    Mute Tom Callaghan
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    Nov 24th 2014, 10:08 PM

    Someone isn’t getting a piece of the pie, The E.U ,,legal version of Mafia

    9
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    Mute Jack Bowden
    Favourite Jack Bowden
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    Nov 25th 2014, 8:44 AM

    The European Parliament has a serious problem with big business.
    Google might have 90% of the search engine market now but it could easily change in the future organically. They should not interfere IMO.

    3
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    Mute Justin Faust
    Favourite Justin Faust
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    Nov 24th 2014, 9:46 PM

    The search engines currently should include specific country, continent, meaning of word, search or a tuition on how to search without getting over 1million found searches every time!
    ?????????

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