The debate continues about whether Angela Kerins will or won’t attend the Public Accounts Committee next week after resigning as Chief Executive. But it isn’t about whether she will or won’t – she has to – as there are questions to answer.
The Public Accounts Committee actually faces a defining moment now – one of compellability.
Because if Angela Kerins decides to stick her retirement lump sum in her pocket and refuse to engage with the PAC, they may well have to travel a road that they have been reluctant to do so far. That’s the road of compellability – and travelling that road will set a precedent. But if it comes to it, they must do it, because the Committee is looking at lots of other areas where they may well have to compel a witness to attend.
PAC has a reputation for getting to the bottom of issues. And with Angela Kerins this will have to be no different. Despite a filleting from Sinn Féin’s Mary Lou McDonald, Independent Shane Ross and others, the Committee needs to press for more detail.
Salary
Angela Kerins left many questions unanswered in her last appearance at PAC on February 27th this year. Remember her salary - €240,000 – and that was a €6,000 pay rise on the previous disclosed salary. But despite the efforts of Sinn Féin’s Mary Lou McDonald, Angela Kerins made every effort not to answer the question.
“My salary was given - again, voluntarily - a couple of years ago. By the way, nobody, other than through the media, has asked me for my salary, including no Government agency. I have had no formal request for it, but I have given it. I can go through the methodology used in establishing salaries for the…” Kerins stated before being interrupted by Deputy McDonald.
“What I would like Ms Kerins to do is to explain briefly and clearly in laywoman's language how she accounts for an increase of €6,000 at a time of cutbacks and pay moderation in her organisation?”
The response from Angela Kerins, still did not shed any light on this. “I do not decide what my salary is. The remuneration committee, with the board, decides not only my salary but those of the group management team. As I said, I will go through that process for the Deputy in more detail. I have given - more than many people - a significant amount of personal financial information and do not intend giving and would prefer not to give any further personal financial information. I think I have done everything I need to do. I have waived entitlements and told the Deputy what I am getting. That is what it is and what the Deputy sees.”
She went on to tell the Committee that she had provided private personal information and wasn’t going to do much more.
But the public remain unconvinced that Ms Kerins is worth €240,000 and will want greater clarity from her on the value for money – why did she deserve to be paid more than the Taoiseach, than the President of the United States, or many other powerful world leaders?
Family connections
Following the PAC hearing, Angela Kerins was accused of failing to disclose fully the shareholdings held by her husband. The company in question was Complete Eco Solutions and Ms Kerins explained the connections:
“There is no relationship between these two organisations. A number of years ago, Rehab Group wanted to get into this business. In piloting and checking to see if that venture is what it wanted to do, it was helped by this organisation. There was no financial benefit to anybody. Complete Eco Solutions Limited, having done some trading in China, agreed to help Rehab Group. It was a pilot project that did not progress. There was no further involvement by Complete Eco Solutions Limited.”
The Committee was aware that Angela Kerins’ husband had been involved with the group and Deputy McDonald asked if she was uncomfortable with the involvement of a family member in a commercial transaction.
“My husband was a director of Eco Solutions Limited but once this activity started, he stood down,” Kerins replied.
But now the Committee want to question further the role of Seán Kerins in the business while there were connections with Rehab, as well as the shareholding of her brother, and predecessor as Rehab CEO, Frank Flannery.
Lobbying
The second appearance of Ms Kerins next week should come on the same day as Mr Flannery. Last month, he quit as a director of the Group, a position he held after retiring as CEO. There has been much attention on his role in Rehab, his links to Fine Gael and lobbying.
Both will no doubt face questions over exactly what was asked of the Government on behalf of Rehab.
The Rehab board representatives will be asked to hand over details on what consultancy work former CEO Frank Flannery has done for them, his pension entitlements and whether he was actually invited to appear before the committee.
Bonus payments
Questions will also be asked about bonus payments. Rehab has been less than forthcoming about the payments of bonuses, other than that they happened for certain staff in certain years and were generic amounts. The PAC will want to know:
When was the last bonus paid to a Rehab executive and what grounds was the additional remuneration awarded?
What is the exact bonus structure that exists in the charity and how was it formed?
Resignation
Angela Kerins will now face a further set of questions – on her decision to resign/retire early.
The 55-year-old will get a pay-off – in line with the terms of her contract we are told.
But the public want to know, need to know and must know exactly what she’s putting in her back-pocket.
Why? Because tens of millions of euro of taxpayers' money, money that could pay for services, has been handed over to the Rehab group. We all as citizens have an entitlement to know how this money was spent, especially if any of it will make up the ‘golden handshake’ for Ms Kerins.
