The High Court has heard a claim that the treasurer and accountant of a State-funded charity, providing education and support for teenagers, has misappropriated up to €161,000 for his own benefit.
The claims were made by lawyers for the Carline Learning Centre in Clondalkin against Greg Walsh of Walsh and Company Accountants, Walkinstown in Dublin, who has been a director of the centre since 2004 and has also been its accountant and treasurer.
Barrister Eamon Marry, representing the charity, told the court investigations so far revealed around €161,000 from Carline's accounts appeared to have been diverted or misappropriated by Mr Walsh.
He said concerns had been raised as a result of an outstanding liability of €72,500 to Revenue.
Mr Marry asked the court for an order freezing Mr Walsh's access to the charity's finances. Mr Walsh was not represented in court.
Mr Justice Paul Gilligan refused to grant the order, after expressing concerns that the matter had not been formally put to Mr Walsh before the matter was brought into court.
He granted permission to serve the proceedings at short notice.
He also said he wanted documentation from the Revenue Commissioners to back up Mr Walsh's claims that payments to Revenue from 2014 were up to date.
The judge said Mr Walsh had written a letter on 10 June explaining that an error had been made but he was available to assist in every way.
Mr Justice Gilligan said these were serious allegations and that he wanted to know the urgency of the situation.
In a sworn statement, chairman of Carline John McKernan said the charity had been registered as a company with charitable status since 1997 and had found increased demand for its educational, training and support services for girls and boys between 12 and 18.
It was principally State-funded with some charitable donations.
Carline relied on Mr Walsh as its treasurer and accountant.
Concerns were raised in June when a cheque raised for Revenue was drawn in favour of Mr Walsh's father, the court was told.
It was later confirmed there was an outstanding liability to Revenue of €72,500.
Mr Marry said Carline was satisfied there were a number of cheques involving substantial sums made out either to Mr Walsh personally, his accountancy firm, his father, a "W Banks" and a company called Besik which had no connection at all with Carline.
Mr Walsh had told the charity cheques were due to be paid to the Revenue but it transpired they were made out to others, Mr Marry told the court.
Mr Justice Gilligan said the court had to be provided with full information particularly in light of Mr Walsh's explanation that accounts were up to date for the last three years.
He wanted to know what engagement there had been between Carline and Mr Walsh about these matters.
When the judge suggested certain payments could have been Mr Walsh's fees, counsel said "absolutely not".
The judge said he also wanted to know what happened when the charity's monthly statements came in which would show what was happening with cheques.
Mr Marry said he was happy that the matter be put back for a day or two for further details to be provided.
Mr Marry said his client had asked for an explanation and had been supplied with certain documents which were self-generated by Mr Walsh but he had not explained why cheques were in his own name.
Carline came to court because of concerns it would not get a satisfactory explanation, counsel said.
The judge said the difficulty was this was going to be reported in the media and there may be an explanation forthcoming.
This was an important consideration when the court was granting an order in relation to whether or not damages rather than an injunction would be an adequate remedy, he said.
Earlier, the judge also noted that there had been substantial payments in 2014 and 2015 to Revenue but also tax refunds had also been made.
"I cannot understand why there was no letter to Mr Walsh setting out Carline's concerns because this goes back to 2014", the judge said.
The matter will be back before the court tomorrow.
