Rehab has confirmed that an alleged fraud is being investigated in one of its wholly owned subsidiaries.
A note attached to the 2018 Rehab annual accounts states that the company concluded a preliminary investigation in 2019, which identified the alleged fraud instance.
He said the matter has now been “revealed to the relevant authorities.”
A spokeswoman for the organization said the alleged fraud caught his attention as a result of a protected disclosure made at a subsidiary.
They said: “Since the matter is subject to an investigation at this time, no further comments can be made.”
The charity, which provides services to more than 20,000 adults and children, last year received a government bailout to address cost escalation in several areas. Accounts show that the rescue came after Rehab recorded a loss of 2.79 million euros in 2018.
The spokeswoman for Rehab said that 1.5 million euros have already been received from the Government and “we anticipate receiving € 500,000 final imminently.”
The spokeswoman also confirmed that the Rehab brand change has stopped due to the financial circumstances of the organization.
In 2018, Rehab awarded a € 30,000 to € 40,000 contract for the brand change that will take place since the group’s name “is no longer suitable for its purpose.”
The name change of the organization was to draw a dividing line due to the controversy in which the company was involved in 2014 that culminated in the resignation of its executive director, Angela Kerins, and a new board that was appointed five months later.
Rehab spokeswoman said the brand change project is now in an advanced stage with much of the project work completed.
However, she said: “It was considered prudent to put the project on hold while working to restore the financial sustainability of the organization. The Rehabilitation Board will decide in due time when this project will begin. ”
Accounts show that six of Rehab’s former top winners shared € 720,491 in redundancy in 2018. Redundancy payments resulted in the payment of a person in the range of € 230,000 to € 240,000 with two earnings between € 190,000 to € 200,000 in 2018.
A note attached to the accounts indicates that the annual savings for dismissal rehabilitation amount to € 489,000.
Without redundancy payments included, the numbers that earned more than € 100,000 in Rehab in 2018 total 10 with the highest income in the range of € 140,000 to € 150,000.
CEO, Mo Flynn received a salary of € 140,000. Three other staff members receive remuneration between € 130,000 and € 140,000; three between € 110,000 and € 120,000 and three between € 100,000 and € 110,000.
The Rehab spokeswoman said that since 2014, Rehab Group has introduced a series of cost reduction measures “in line with the mission of our Board of Directors to transform the organization.”
She said: “This implied very significant salary cuts for continued members of the Senior Leadership Team (SLT), which saw an average base salary reduction of almost 20% and the termination of any bonus agreement.”
At the end of 2018, Rehab employed 3,069 and personnel costs amounted to 96.8 million euros.