LAST UPDATE | 11 Oct 2023
THE CHIEF EXECUTIVE of the Peter McVerry Trust, Francis Doherty, has resigned from his role.
This comes after the charity confirmed in August that it was “experiencing cashflow pressures that are more acute than would traditionally be the case, even allowing for the summer period”.
It was confirmed at the time that the Department of Housing and the Dublin Region Homeless Executive (DRHE) had been informed by the charity of the potential issues.
In a statement today, the Trust confirmed Doherty “tendered his resignation to the Board of Directors this morning”.
“Our focus remains on the future of the organisation. We will co-operate with all stakeholders to achieve that as best as possible. Continuity of care for our participant group remains our priority,” it said.
“We are disappointed with Francis’s decision but we wish him well after what has been a difficult period for him.”
The Approved Housing Bodies Regulatory Authority (AHBRA) said in September it appointed the inspectors to conduct a statutory investigation of the housing and homelessness charity.
A spokesperson told The Journal that it “identified concerns in relation to the organisation” having first been notified of a number of “financial and governance” issues by the charity in July.
AHBRA’s inspectors had been asked to prepare and submit a report on their investigation and findings – the regulator said in September it would not be making any further comment while the investigation is ongoing.
“It is important to note that the commencement of a statutory investigation is not in itself a finding of any wrongdoing,” a spokesperson for AHBRA said.
The trust was established in 1983 by Fr Peter McVerry, who had witnessed homelessness and deprivation in Dublin’s north inner-city in the years prior.
Following the appointment of the AHBRA inspectors, Fr Peter McVerry told South East Radio in September that there is no evidence of fraud at the charity and that its services will not be impacted by the investigation.
“It’s a cashflow problem. One of the difficulties is our tax liabilities. During Covid, we along with hundreds of thousands of other organisations were allowed to warehouse our tax liabilities,” the homelessness campaigner said.
“During that time, our fundraising events were cancelled, our income dropped substantially, so now we’re having to pay back the back taxes, along with our monthly tax liability for PAYE and PRSI for over 500 employees, so that’s challenging,” he said.
“There is absolutely no evidence of financial fraud or misappropriation of funds, let me be very clear with that.”
McVerry said the charity has questions to answer as to why is was not aware of the problem more quickly, and that it may have to put more financial expertise onto its board.
He added that the charity hopes its donors are not “put off” by the investigation.
“We depend very heavily on our donors and we hope they will continue to support us and not be put off by any suggestions that there’s something amiss in the organisation.”
The charity’s latest annual report shows that it received €38,378,909 in State funding in 2021. It also received €14,875,168 in charity-generated revenue and capital funding.
In 2020, the charity received €29,957,357 in State funding.
Dublin City Council said in a statement in August that the DRHE was “engaging” with the charity over the potential financial difficulties.
“While the realities of potential issues are clarified it is critically important that services to people experiencing homelessness continue and a commitment has been given that services will not be affected.”
Doherty has been contacted for comment.
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