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High Court appoints provisional liquidators to charity in money-laundering investigation
The High Court has appointed provisional liquidators to a charity at the center of a police money-laundering investigation.
Provisional liquidators were appointed to Liberties Recycling and Development Company limited following an application by the Charities Regulator as part of its petition to wind up the charity.
The regulator said it sought the order after engaging with trustees when a police money-laundering investigation seized around €300,000 in assets.
The regulator said there was no evidence that the charity's trustees were involved in the activities under investigation. However, it concluded from their engagement and response that there was little or no effective management or oversight of the charity's activities.
According to the regulator, the appointment immediately puts executive control in independent hands. It is intended to enable transitional support for vulnerable service users and employees, secure the charity's assets and, if possible, transfer them to another charity with a similar purpose.
The Charities Regulator named Shane McCarthy and Cormac O’Connor of KPMG as the joint provisional liquidators. A High Court hearing on the winding-up application will take place in November, the regulator said.
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Court told Ó Snodaigh approved two non-charity entities linked to Liberty Recycling
Sinn Féin TD Aengus Ó Snodaigh signed off on setting up two entities related to Liberty Recycling that were not charities, the High Court was told. He acted in his capacity as chairperson of the charity.
The Charities Regulator told the High Court that one entity was established to participate in a Department of Social Protection scheme. The other was established because of issues concerning the VAT treatment of proceeds from the charity's clothing sales.
In an affidavit earlier this week, Charities Regulator chief executive Madeline Delaney said there was no evidence suggesting trustees were involved in, or aware of, any alleged criminal activity. She nevertheless said they had allowed separate non-charity companies to be established and the charity's operations and assets to become conflated with those entities.
The court appointed provisional liquidators following an application made on an ex-parte basis. It heard that there was no evidence suggesting the trustees were involved in, or aware of, any alleged criminal activity.
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