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Friday 19 September 2014

Former Rehab director in the UK is forced to resign

MAEVE SHEEHAN, SHANE PHELAN and NIAMH HORAN

Published 16/02/2014 | 02:30

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Angela Kerins, Chief Executive, Rehab Group. Photo: Damien Eagers
Angela Kerins, Chief Executive, Rehab Group. Photo: Damien Eagers

A FORMER director of Rehab was forced to resign from the group's UK companies after he was disqualified as a director in Britain, the Sunday Independent has learnt.

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Barry Keogh, a director of project management firm Keogh McConnell Spence (KMCS), was a long-standing director of Rehab and was on the board of two of its UK subsidiaries, TBG Learning and Momentum Scotland.

He resigned from both after he was disqualified in 2012 as a director in the UK until 2015.

During his time at the charity, Mr Keogh's project management firm was paid more than €80,000 by Rehab over four years for work done for the organisation.

Mr Keogh set up a branch of KMCS in the UK but it was liquidated in 2010.

A spokesperson for the UK insolvency service, which holds information on directors of liquidated firms, said: "Mr Keogh's disqualification was due to the fact that he was a director of KMCS (London) Ltd at a time when the company failed to pay its taxes."

The company was placed into voluntary liquidation on June 3, 2010.

Details of the disqualification emerged as attention continues to focus on the charity and commercial group's chief executive Angela Kerins over her pay package.

The Sunday Independent understands Ms Kerins will finally reveal her salary tomorrow after a meeting of the group's board.

She has refused to divulge her salary in recent years, but last month she faced calls from Taoiseach Enda Kenny, Tanaiste Eamon Gilmore, and three other government ministers to reveal it.

The calls came after controversy flared over the poor performance of Rehab's charity scratch card after an audit found it produced a surplus of just €10,000 after €4m worth of sales in 2010.

Companies within the Rehab Group received €80m in State funding last year.

The pay issue will be discussed at a Rehab board meeting tomorrow.

A statement will be issued afterwards.

It is understood Ms Kerins has indicated she will not stand in the way of her salary being disclosed by the board and is conscious of the adverse publicity the issue is attracting.

The last disclosed figure for her salary was €234,000 in 2011. The Sunday Independent understands that a similar figure will be disclosed tomorrow and there are no bonuses involved.

It is also understood the board will consider releasing details of reports on executive remuneration it commissioned in recent weeks.

The group has used the services of executive recruitment companies such as Hays, Amrop and Towers Watson over the past 12 years to advise on remuneration for executives.

These firms take into account factors such as the size of a company and comparable pay rates in similar sized businesses before making a recommendation on the size of a pay package. Ms Kerins declined to comment on the issue when approached by the Sunday Independent leaving Rehab's headquarters in Sandymount, Dublin, on Friday evening.

Rehab will face questions over its use of State funding when it appears before the Dail's Public Accounts Committee in the next fortnight.

PAC member Shane Ross said: "It will not be enough for Angela Kerins simply to reveal her salary. She will have to justify it fully before the Public Accounts Committee.

"And we will also be looking for other people in Rehab with extravagant salaries to explain them as well. We will have to look at their pensions and see how much of this is coming out of the public purse.

"We will have to see where State money is going and how it is being spent."

The HSE sought and received details of executive pay at two Rehab subsidiaries it funds, the National Learning Network and Rehab Care, as part of its recent examination of so-called Section 39 charities.

However, Ms Kerins's salary was not sought by the HSE as Ms Kerins is not part of the management team in either company.

Sunday Independent

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