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Rehab Group Mark Stedman/Photocall Ireland

Rehab admit response has been 'inadequate' and 'seriously damaging'

The group has drafted in an independent management consultant to identify how they can be more transparent.

Updated 13.48pm

THE BOARD OF the Rehab Group, Brian Kerr said their response to “recent political and public demands for information” has been “inadequate”.

The group has been embroiled in controversy over the salary payments of some of its top executives, such as former CEO Angela Kerins.

Political and public pressure

Following much pressure, it was finally revealed that she earned €240,000 annually, as well as revelation that Rehab made a €9,000 profit from €4 million worth of scratch card sales in 2010.

In a statement to staff of the group, Kerr said:

We recognise that as a Board we have not exercised strict and appropriate oversight of certain issues which have come to public attention in recent weeks.
The Board’s priority now is to initiate a programme of transformation and change which will allow us to candidly confront the issues before us and to rebuild the reputation, staff morale and effectiveness of the organisation.

Damage caused

Kerr said that the reputation of the group has been “seriously damaged”.

In order to restore confidence again, he said the group must instil a “programme of change” and must strive to recover the confidence and trust of the people who use their services.

He also said they must recover the confidence from their staff, “the people of Ireland who fund us, including the Government, and other stakeholders −  not least our colleagues in the charity sector who have suffered because of the fall-out over the current controversy”.

Kerr also told staff that as “a matter of urgency” they are committed to making whatever necessary changes, which will include changes to the Board, which he said will ensure that the organisation can have the full confidence of those “who use our services and those who fund us”.

The group said that it has asked Eddie Molloy, an independent change management consultant, who is a trustee of Genio, Chairman of Mental Health Reform and former Chairman of Focus Ireland and other NGOs, to oversee and help with specific changes they want implemented.

Changes

Molloy will help identify what changes need to be made in order to renew the Board and the way it works.

Kerr said Molloy has also been drafted in to identify the best way to increase the degree of transparency – such as how people are paid across the organisation, “so that we not only meet, but exceed, reasonable public expectations and regulatory requirements,” said Kerr.

“Rehab Group has a proud record of service” and have “helped to make lives better for many people,” concluded Kerr.

He said he hoped by “candidly confronting these issues once and for all and implementing the right transformation programme, we can emerge a stronger and better organisation”.

The Public Accounts Committee said last week that there are further answers that need to be given and have asked Kerins, former board member, Frank Flannery and other staff to appear before them again.

PAC member and Fine Gael TD Simon Harris said he welcomed the review of the group, but said there were “outstanding questions” that must be answered by the Board.

… belatedly setting up a review doesn’t take away from the fact that Rehab board members played a key role in setting pay rates and overseeing other practices at the organisation.It’s now three months since Angela Kerins first refused to disclose her salary as CEO, and questions about the organisation remain unanswered.

He said the attempts being made to fundamentally repair Rehab’s reputation must not be viewed as a “fait accompli” adding:

If Rehab truly wants to rebuild trust, then its former senior executives – including Angela Kerins and Frank Flannery – must come before the Public Accounts Committee to answer outstanding questions.

Chairman of the PAC John McGuinness said the committee had still not had confirmation from either Kerins or Flannery that they would attend this Thursday’s meeting.

“However,” McGuinness said, “our expectation is that Ms Kerins and Mr Flannery will attend the meeting, along with the Chief Financial Officer of the Rehab Group and members of the remuneration committee of the Group”.

The whole issue of change and transformation is a subject we will address at our meeting on Thursday with Rehab.

“We will consider in detail the changes necessary to ensure there is adequate transparency, accountability and oversight at Rehab.”

RSVP: Angela Kerins and Frank Flannery yet to confirm attendance at PAC next week>

Read:  Angela Kerins and Frank Flannery are ‘absolutely expected’ to attend PAC next week>

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29 Comments
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    Mute Capitaine Adebayo Flynn
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    Apr 8th 2014, 12:29 PM

    Angela Kerins disgusts me.

    145
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    Mute me so harney
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    Apr 8th 2014, 12:18 PM

    Hey guys, that horse has fecked off – would one of you bolt the gate?

    137
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    Mute Get Ta France
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    Apr 8th 2014, 1:00 PM

    Anyone who donates to this scam of a charity need their head read!!

    153
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    Mute Stephen Murphy
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    Apr 8th 2014, 1:12 PM

    We have loads of retirees, with experience in these sectors and time on their hands. Why can’t someone, do it voluntarily and just claim expenses? If I was retired, I’d do it voluntarily and feel good about doing my bit for humanity?

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    Mute Eileen Roche
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    Apr 8th 2014, 1:16 PM

    Government should not be involved in charities either, until all is transparent with whatever charity. Plus if they needed Gov. help it should be in an open letter. If you do not lie, then you should have nothing to hide….. oops forgot though that they are all friends of friends in high places.

    63
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    Mute Stephen Murphy
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    Apr 8th 2014, 1:40 PM

    Lobbyists, should be registered and should go through a public notice system. If they intend to Lobby, a public notice should be issued on its intent to lobby and what they are lobbying for. The process, should be open and public. Any objections or concerns, can be raised and full accountability is assured!

    41
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    Mute Teresa Scanlon
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    Apr 8th 2014, 12:23 PM

    Pay more now to another consultant to tell them how to answer questions. It’s all crazy…

    126
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    Mute Jane Travers
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    Apr 8th 2014, 1:12 PM

    *facepalm*

    This crowd are so divorced from reality that I just despair. Imagine drafting in another “consultant” at a time like this. How much are they paying the consultant to tell them to be more transparent? Hell, I’d tell them myself for a cup of tea and a creme egg!

    89
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    Mute Irish Revolution
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    Apr 8th 2014, 12:21 PM

    Bet the management consultant will cost a fortune, consultants always do in Ireland.

    85
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    Mute Mary Kavanagh
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    Apr 8th 2014, 1:11 PM

    I think the word “inadequate” as used by Brian Kerr to describe Rehab’s response to this scandal is inadequate.

    64
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    Mute Eileen Roche
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    Apr 8th 2014, 1:08 PM

    Kerr should have made a short statement, “cutting their wages in half and no perks, hand them a brown wage packet, and paid only by the hour.” They are no different from any other working person, that is what has been wrong in Ireland and elsewhere from day 1. Money….it was/is a status symbol for the elite. To most that symbol has given them to think they can just help themselves to more, and look down their nose at the working class. Class distinction is again rife. Our own government plus many behind a desk make the unemployed, through no fault of their own, feel like beggars and fraudsters. Pensioners who worked all their life now made to live on the poverty line etc. etc. The whole system is just 1 big holy mess,

    52
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    Mute padser123
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    Apr 8th 2014, 12:34 PM

    All this – over a simple question.

    38
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    Mute Stephen Murphy
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    Apr 8th 2014, 1:14 PM

    The answers, lead to more questions and we must not expose cronyism in Ireland!

    37
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    Mute Shakka1244
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    Apr 8th 2014, 1:06 PM

    Brian should stick to soccer

    36
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    Mute Red Ed
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    Apr 8th 2014, 3:03 PM

    I used to donate by direct debit of about €40 a month to different charities but now I feel like I was paying for some fat, greedy, selfish sponge to wipe her arse with 10 ply toilet paper. I think I’d rather throw the money off my debts or donate it personally from now on.

    26
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    Mute Sheelagh Reid
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    Apr 8th 2014, 12:37 PM

    “Enthralled”?

    22
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    Mute Michael Garett
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    Apr 8th 2014, 2:53 PM

    As if they really care. To quote Fr. Fintan Stack “I’ve had my fun and that’s all that matters”

    22
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    Mute Aodhan O Cuana
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    Apr 8th 2014, 2:47 PM

    Rehab contract needs to be terminated, as for €82 million there has been little proof of outcomes except excessive wages. A criminal investigation needs to take place to see if monies were misused too. The social care market in Ireland is a sham not unlike other neoliberal market economies.

    20
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    Mute Derpy derp
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    Apr 8th 2014, 12:29 PM

    People will soon forget and again start throwing money at anybody that calls themselves a charity. The fact that it is lining corporate pockets is immaterial. Givers are merely buying the release of that ever so sweet dopamine that we crave so much

    17
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    Mute rodrigo detriano
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    Apr 8th 2014, 12:53 PM

    @ Derpy Derp I don’t agree with you that people will soon forget. Hell I couldn’t even bring myself to donate to the lifeboat charity at the weekend. The very idea that my donation might be used to pay someone like Angela Kearns turns my stomach!

    53
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    Mute Mindfulirish
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    Apr 8th 2014, 3:03 PM

    Are some of these old board members still on the same board? All should be fired and start again.

    16
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    Mute Jack Daniels
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    Apr 8th 2014, 2:07 PM

    I think they may not make it their both doing interviews for positions in FAS.

    12
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    Mute Kieron Murphy
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    Apr 8th 2014, 2:50 PM

    I bet these consultants cost a fortune and turn out to be somebody’s brother or cousin or aunt. So sorry they kept taking the cash( and probably still are ) and then think sorry is good enough. Hypocrisy comes to mind after greed.

    11
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    Mute Simon Scriver
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    Apr 8th 2014, 4:24 PM

    What should Rehab pay their next CEO? Turnover is €180 million and they employ about 3500 staff…but they’re a registered charity.
    Genuine question: what should their salary be?

    8
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    Mute Cal Mooney
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    Apr 8th 2014, 6:10 PM

    No more than 4 times the lowest paid employee….

    9
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    Mute Mindfulirish
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    Apr 8th 2014, 3:08 PM

    This is worse than the Catholic Church and the abuse of young boys. The whole thing stinks. The government are now bullying its citizens to protect the police. Shame on them. Bring in the FBI to investigate the Ian Bailey case. 1 decent detective could work out the level of corruption in the police here.

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    Mute Sheik Yahbouti
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    Apr 8th 2014, 2:31 PM

    Ah, Christina, “the Pubic Accounts Committee”?

    7
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    Mute HR-SOS
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    Apr 8th 2014, 4:12 PM

    Strange, didn’t see that job advertised

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    Mute Niall Sheridan
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    Apr 8th 2014, 2:38 PM

    Sounds like a contract for Frank Flan!!

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