Irish Horseracing Regulatory Board Faces Scrutiny Over Controversial Fund Transfer
A recent independent audit has revealed that the Irish Horseracing Regulatory Board (IHRB) breached charity regulations with a €350,000 transfer of funds from the Jockeys’ Emergency Fund (JEF) in 2022. The transfer, aimed at addressing urgent cash flow pressures, was reversed three months later.
The investigation, conducted by the audit firm Forvis Mazars, stemmed from revelations made by IHRB chief executive Darragh O’Loughlin before the Dáil’s Public Accounts Committee. O’Loughlin described a “grave” financial matter involving the former chief financial officer, Donal O’Shea, who subsequently resigned.
JEF Funds Used for Non-Charitable Purposes
The Mazars report, examining six years of IHRB financial records, concluded that the transfer of funds from the JEF, a charity administered by the IHRB, violated the 2009 Charities Act. The Act mandates that funds held by charities must be used solely for charitable purposes.
According to the report, the former CFO initiated the transfer due to cash flow issues caused by delayed funding from Horse Racing Ireland (HRI) and significant redundancy payments. However, neither the CFO nor the finance manager reported the transaction to the IHRB board, CEO, or the JEF trustees. Moreover, specific approval was not sought from either the JEF Trustees or the IHRB Board.
Redundancy Payments and Governance Concerns
The report also highlighted concerns surrounding the termination payment of €384,879 given to Denis Egan, the former chief executive of the IHRB, in 2021. Egan received more than €140,000 beyond the maximum permitted payment under the voluntary redundancy scheme.
While the IHRB approved Egan’s payment, interviews with HRI representatives revealed that racing’s ruling body hadn’t formally approved it. One recommendation in the Mazars report is for written approval from HRI when public funds are used by the IHRB for redundancy payments.
Steps Taken to Address Issues
O’Loughlin stated that the incident was unacceptable and assured that the IHRB has implemented significant improvements to financial governance procedures and internal controls. These measures have been reported to the Oireachtas Public Accounts Committee. He emphasized the organization’s commitment to addressing the issues highlighted in the report and further strengthening its operations.
The IHRB representatives are scheduled to appear before the Oireachtas Joint Committee on Agriculture, Food & Marine on Wednesday evening to discuss these matters further.
Stay Informed
Keep up-to-date on this developing story and other Irish horseracing news by following reputable equestrian news sources and official statements from the IHRB and HRI.