IHRB chief financial officer still on voluntary leave 12 months after revelation of financial issue of 'grave concern'

The Irish Horseracing Regulatory Board's (IHRB) chief financial officer remains on "voluntary leave" 12 months after a financial issue of "grave concern" was communicated to the Public Accounts Committee, which was revealed last week in its 2022 annual report to be the transfer of €350,000 from the Jockeys Emergency Fund to the IHRB.

At a PAC hearing in June last year, chief executive of the IHRB Darragh O'Loughlin digressed from his opening statement to reveal a financial irregularity had been unearthed relating to the IHRB's 2022 accounts. O'Loughlin noted the chief financial officer Donal O'Shea, who had been scheduled to appear in front of PAC that day, was on "voluntary leave" with immediate effect "without prejudice to his position".

IHRB and Horse Racing Ireland (HRI) officials appeared in front of the committee again on Thursday morning when it was confirmed that O'Shea remained on leave.

O'Loughlin said: "We have had the support of a head of finance seconded from HRI over the course of the last year and he is on annual leave with his family. Our own CFO remains on leave and is unavailable to us. The individual remains in our employment as CFO."

When asked to disclose what type of leave he was on, O'Loughlin said: "As an employer, we have a duty of care to our employees not to divulge personal information. He is on pay."

Chair of PAC, Brian Stanley described the situation as "very unsatisfactory".

O'Loughlin also noted that the auditing and accounting firm Mazars' investigation, which was prompted by the revelation, into the financial governance of the Irish Horseracing Regulatory Board (IHRB) has yet to be completed.

Irish Social Democrats TD Catherine Murphy and Fianna Fail's James O'Connor pressed O'Loughlin about the transfer from the Jockeys Emergency Fund but he declined to speculate until the Mazars report was finalised, although he did confirm that all records of the IHRB since its inception were under scrutiny in the investigation.

He said: "The answer to that question could also have implications in relation to the IHRB's own disciplinary processes. Therefore, I'm very much circumscribed in terms of what I can say. I can't answer any questions that could in any way prejudice any proceedings which may be under way or get under way in the future.

"One of the reasons we asked Mazars to review all six years of financial records for the IHRB was because I wanted to be able to say conclusively whether or not any other similar transfers occurred in the past. We are satisfied that no other similar transfers occurred in the past since the IHRB was established on January 1 2018."

Verona Murphy, an independent TD for Wexford, repeatedly requested O'Loughlin to reveal what salary the CFO has been on since going on leave.

O'Loughlin responded: "I am not going to answer a question if, by answering, I would be divulging personal information in relation to an employee."

Denis Egan: former chief executive received larger exit payment than anticipatedCredit: Patrick McCann

Former IHRB chief executive Denis Egan's exit payment was also referenced during the hearing. It was revealed in March 2023 Egan received an exit payment of €384,870, a figure that was 58 per cent above what he was entitled to under the terms of the redundancy scheme, after he took early retirement in the autumn of 2021. 

O'Loughlin stated that the money transferred from the Jockeys Emergency Fund did not form part of his exit package.

"The transfer of the €350,000 was not directed to him but all the facts around this will be contained within the Mazars report which is not yet finalised. That scheme and the implementation of that scheme in its entirety forms part of the review of financial governance being undertaken by Mazars."

It emerged during the hearing that Mazars are being paid €80,000 to carry out the investigation and when asked by Stanley if he expects the report to be finalised in the next two or three months, O'Loughlin said: "Yes, I believe so."

Read this next:

Top Irish officials to face parliamentary hearing over €350,000 transfer from jockeys' fund and RTE Investigates programme 

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