It has emerged that the Central Remedial Clinic (CRC) pays over €500,000 a year to the Mater Hospital in Dublin to administer a pension fund that does not exist.
The Public Accounts Committee (PAC) has been told that the payment is a legal obligation even though the fund has no money.
The former chief executive Paul Kiely of the CRC said he tried to break the arrangements around a decade ago. But he told independent TD Shane Ross that his efforts to stop the scheme were dismissed.
Meanwhile Mr. Kiely has revealed that he has also now resigned from the board of the CRC.
He confirmed to the Public Accounts Committee that he had tendered his resignation since the news of the payment of top ups for senior executives emerged.
The chairman of the PAC meanwhile has slammed the Health Service Executive (HSE) for not doing more to tackle private salary top-ups.
John McGuinness says the HSE did almost nothing to stop bodies like the Central Remedial Clinic (CRC) using public fundraising to pay managers.
It has emerged that the HSE was aware of the CRC arrangements four years ago but never intervened to try and stop it.
Deputy McGuinness says the HSE also carries some of the blame.
The HSE earlier admitted it knew that the CRC was using private funds to pay some senior managers.
Earlier the CRC Chairman admitted they knowingly breached the salary of resigned chief executive Brian Conlan.
Jim Nugent said the CRC could not cut other salaries with top ups because the breach of contracts would "cost millions".
Several key figures appeared before the Committee
Chief HSE operating officer Laverne McGuinness has told the Public Accounts Committee that the CRC sent a letter in November 2009 outlining its plans.
And while the HSE did not sign off on the arrangement, Ms. McGuinness said the HSE never wrote back to stop it.
Board Director at the CRC David Martin earlier insisted at the Committee that they came to an agreement four years ago to allow for the top-ups, quoting a letter written at the time.
Pictured above: Former CRC CEO Paul Kiely
