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Tánaiste signs order to strengthen charity regulator

The Charities Act has been in focus since the Console scandal broke
The Charities Act has been in focus since the Console scandal broke

Tánaiste and Minister for Justice and Equality Frances Fitzgerald has signed a commencement order to allow greater investigative and enforcement powers for the charity regulator.

The commencement of Part Four of the Charities Act 2009 will allow the regulator to carry out statutory investigations of charities.

Ms Fitzgerald said the new powers will take effect from 5 September to allow for extra staff to be recruited.

"With the announcement of Part Four commencing this September, today marks another step forward in the better governance of the sector," she added. 

"My officials are also examining the legislation to determine if any other provisions are necessary at this time."

The Government has faced criticism for failing to enact Section Four in the wake of revelations about the finances at suicide bereavement charity Console.

The High Court earlier heard the founders of the charity engaged in "a tactical and considered web of deceit" after being engaged in "prolonged abuse of public trust and public money".

The statement was made by interim CEO of Console David Hall as the court renewed and extended orders to freeze the assets of Paul and Patricia Kelly and their son Tim.

The court was told that court orders issued last week had been breached and there was a concern that further assets could be hidden or moved beyond the charity's reach.

Patricia Kelly appeared in court for the first time since the scandal broke.

The court heard her husband Paul is a patient in a psychiatric hospital and is unable to give instructions to a solicitor.

Their solicitor James MacGuill said Paul Kelly was likely to be in hospital for some time and he needed more time to deal with the case.

He said Patricia Kelly was in court and was willing to give any undertakings necessary.

Mr Hayden said there was no transparency.

The court heard details of "elaborate spending" on credit cards connected to the charity by Tim Kelly.

RTÉ Investigations Unit: Console - the latest affidavits

In a sworn statement, Mr Hall told the court he was assured last weekend that files, records and cars, which were handed over in a Dublin Hotel, represented the entire records of Console.

However, after a tip-off from the member of the public hundreds of other items were discovered in a lock-up storage facility in Naas, Co Kildare yesterday.

Mr Hall said 380 folders, a laptop, 25 cheque books, a petty cash book, 40 keys, a briefcase and numerous CDs, DVDs and photographs were found in the storage facility.

CCTV footage showed that Paul and Patricia Kelly had been there.

Mr Hall said Ms Kelly had contravened the court orders granted last week and was acting with malafides by instructing a solicitor that all records relating to the charity were handed over last weekend while she was also aware of or engaged in setting up the storage facility.

He said he had lost any remaining confidence in the bona fides of Paul And Patricia Kelly where it appeared assets were hidden and he was concerned further assets could be moved beyond the charity's control.

Mr MacGuill said it was perhaps the best known case in the country and the risk of assets being interfered with was negligible.

He said it would take time to get instructions from Paul Kelly, who would need medical clearance.

Senior Counsel Martin Hayden told the court the orders now needed to be extended to freeze all assets of Paul and Patricia Kelly as new assets had been discovered and were being "moved in different ways".

He said the Kellys displayed a real lack of candour in saying last week that they had handed over control of all assets which turned out to be "completely untrue".

He said additional companies had been identified since they got the records.

Objecting to an application for an adjournment for two weeks, he said the matter was urgent as the Kellys had proved themselves to be extremely untrustworthy, having abused the trust of those donating to a charity.

He said there was no transparency about how money was being spent.

The court heard details of "elaborate spending" on credit cards connected to the charity by the three Kellys.

The court orders have now been extended to include Tim Kelly.

The court was told Tim Kelly appears to be "the link" between the UK and Irish branches of Console.

He appears to have spent €63,000 last year alone including spending on travel, cars and dining out.

Paul Kelly had spent €41,000 last year and a card in the name of a Sr Margaret Joyce ran up a bill of €62,000.

The court has previously heard this card was controlled by Paul Kelly.

Patricia Kelly appears to have spent more than €35,000 in the same year including ATM cash withdrawals totally more than €3,000 and the payment of property tax.

The court also ordered the disclosure of any directorships,  companies, trusts or foundations established in relation to Console.

Mr Hayden also asked the court to order the Kellys to hand over details and log in passwords for a PayPal account linked to Console.

They were also ordered to furnish a list of all bank accounts.

Paul and Patricia Kelly were also ordered to provide details of the transfer or any assets in the past four years.

Separately, lawyers for Paul Kelly's sister, Joan McKenna, told the court she never had anything to do with Console or its running or finances and had suffered huge reputational damage as a result of being joined to the case.

The court heard she claims her signature was forged on a document appointing her as a director of Console.

The only thing that connected her to the governance of Console were the Companies Registration Office records.

They show that Joan Margaret McKenna was a director for a short time six years ago.

They also show an address in Clane where she has never lived. The date of birth was also incorrect.

She never agreed or signed any documents, her lawyers said, but added that they were not in a position to object to some of the court's orders continuing against her.

Counsel for Console said the signature of a Joan McKenna appeared on many other documents.

The court directed that the orders granted last week continue against Ms McKenna.

The case against her was adjourned for two weeks.

Speaking on RTÉ’s Drivetime, Mr Hall said he is there on a voluntary basis to try to "steady the ship, amid absolute chaos".

Mr Hall said he does not believe they have yet gotten to the bottom of things.