John Campbell

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Exclusive: Donegal councillors John O’Donnell and Michael McBride funded by Údarás na Gaeltachta

At a time when controversial ‘cash for favors’ Donegal councillor John O’Donnell was refusing to pay more than 33,000 euro compensation to a Creeslough woman he injured in a car accident 16 years ago, Údarás na Gaeltachta granted him and fellow councillor Michael McBride more than 122,000 euro in public money (see document here Udaras grant), I can reveal exclusively in this blog.

John O Donnell Donegal, independent councilor Donegal

O’Donnell was founder, director and secretary of Dúncrua Teoranta, the company receiving the money. Interestingly, a second director of the company was fellow councillor, Michael McBride, who also acted as company secretary. Both men – now declaring themselves independent councillors – were then members of Fianna Fail. A third director named was Sarah Doherty.

Documents show McBride and O’Donnell became directors of Dúncrua Teoranta on the same day, 14 Sep 2006, when it was set up to sell metal ore. They are also listed as company secretaries. McBride was director for a year and four months, until February 2008 when he resigned. The company’s address was listed as just inside the Gaeltacht, at Cuirin, Termon.

Dúncrua Teoranta

Údarás approved funding for Dúncrua Teoranta of 122,300 euro in 2008, paying out 66,850 euro in that year alone. The owners put the company into bankruptcy within months of the money being given. Aidan Garcia of Collins Garcia Corporate Recovery, 28 Fitzwilliam Place, Dublin was appointed as liquidator.

“As the money was given at a time when the company was close to bankruptcy, it seems it’s yet another case of cronyism, money given to two Fianna Fail politicians by a Fianna Fail dominated organization,” commented one observer with inside knowledge of Údarás operations.

Interestingly, O’Donnell was granted the money by Údarás at a time when he owned another company, Kilmac Form Work Limited, which later went into receivership with documents showing it had liabilities of 4.8 million Euro. Much of that debt, as declared during a High Court hearing in 2012, was owed to AIB Finance, thus to ordinary Irish people as the bank was bailed out by the State through injections of billions of euro of public money.

Kilmac Form Work Limited

O’Donnell registered Kilmac Form Work Limited on 6 April, 2005 in Ballyherrin, Kilmacrennan, several kilometers from Duncrua Teo, described as being involved in the manufacture of metal structures. It is currently listed as ‘Receivership’ with two directors, O’Donnell and his brother. The ‘Irish Independent’ reported recently that O’Donnell was forced to make back settlements to the taxman totaling over 330,000 euro. I have contacted both Councillors McBride and O’Donnell for comment but neither has responded. Údarás finally released a statement confirming it did grant O’Donnell the money. Where were Údarás officials when the RTE ‘cash for favors’ investigation was aired to such national furore weeks ago? Cowering in a corner hoping no-one would notice it had given scarce public money away so recklessly?

Urgent questions require immediate answers

The documents unearthed for this blog call into question the actions of both O’Donnell and Údarás na Gaeltachta.

O’Donnell is already firmly in the public spotlight due to his being caught on RTE camera allegedly offering ‘favors for cash’ on Donegal council business, as well as being under threat of arrest for failing to pay compensation due to Ms. Petra Kucklick of Creeslough whom he injured when he drove his car over her foot in 2000. District Court Judge Paul Kelly was quoted in the local media saying he will have the councillor arrested if he does not appear in person at the Letterkenny court on February 3rd to explain why he has failed to pay any of the compensation to the injured woman. O’Donnell seemed to have had lots of money at one time and could have easily paid the compensation, why did he decide not to do so?

Almost all of the main political party representatives in Donegal have called directly for O’Donnell’s resignation, as did Independent councillors, Micheal Cholm Mac Giolla Easpuig, who has called for a boycott of next week’s full council meeting due to take place on Monday, January 25, Dessie Shiels, who left a meeting Letterkenny Municipal District Council last week in protest, and Frank McBrearty, former Mayor, who resigned last week from the Independent Grouping on Donegal County Council in protest as O’Donnell not being expelled.

‘Donegal Now‘ news service said Cllr. McBrearty explained that Cllr Michael McBride’s casting vote as party whip means he has the power to expel Cllr John O’Donnell from the group and the committees given to him under the all inclusive deal. The news service quoted McBrearty saying: “I will perform my duties as an Independent councillor and do my very best for the people that elected me. I will not be associated with Cllr John O Donnell when he clearly said he could get the backing of 25 to 30 other councillors. I am not one of these councillors and am making my position clear by taking this stand. I do not understand the reluctance of some councillors to support my decision but that’s for them to decide.”

The information these documents reveal also come as councilor Shiels, who will contest the next national elections, recently left a meeting of the 10-member Letterkenny Municipal District Council in protest at O’Donnell’s attendance. “In the aftermath of the RTE investigates programme which aired on RTE in November past, I personally cannot involve myself in county council meetings, whether at Municipal District Level or at full plenary council level in the presence of councillor O’Donnell,” Shiels said. “To do so would, to my mind, compromise everything that I have tried to do to date since being elected to Donegal County Council to restore public confidence in politics in Donegal.”

Added another observer, who prefers his identification to remain confidential at this times, said, “I wondered why Michael McBride was so quiet in his condemnation of O’Donnell.”

Is John O’Donnell the kind of political leader the people of Donegal want? Is this what we mean when we say proudly, “we’re different up here?”

Does Údarás na Gaeltachta lack good governance?

Key questions also remain about the operations of Údarás na Gaeltachta, particularly in Donegal.

Did anyone at the organization check into the financial health of O’Donnell and his companies before granting him 122,000 euro of public money? If so, why did it go ahead and approve the grant? If it did not check, then it is guilty of ignoring its duties to the public whose money supports the organisation’s entire operation.

Perhaps, in addition to the controversial wind farm development issue that was the focus of the RTE program, perhaps O’Donnell can clarify how he got the money from Údarás for Dúncrua Teoranta. It is not believed either O’Donnell or McBride have paid any of the money back.

Also, as the Office of the Director of Corporate Enforcement (ODCE) identified the requirement for a ‘Section 56’ on O’Donnell’s company – which allows interested parties to bring concerns before the liquidator and thus try to recuperate their money – has Údarás done so in relation to the loss of public money (the grant)? If, not, why not? Is this yet again willful disrespect of public interest?

Or in the light of the allegations arising from the RTE program – did some people at Údarás get kick-backs for pushing the money through for O’Donnell? Considering Fianna Fail’s long-time dominance of Údarás and that party’s record of skullduggery in bankrupting Ireland, such allegations cannot be ignored. In addition, this blog revealed that Údarás hired Finbarr Boyle as business training manager for local entrepreneurs through the EU funded CeanaglG project in Donegal even though Boyle was already under investigation, had already pleaded guilty as part of a plea bargain and was later proven guilty of stealing more than 200,000 euro from a village school, including money earmarked for children’s food. Does the organization suffer from a severe lack of good governance?

Oh, and by the way, where did the 122,000 euro go? As Cuba Gooding Jr. said in that wonderful film, ‘Jerry Maguire’ – “Show us the money!”

Changes required at Údarás?

With frequent revelations about the operations of Údarás – including free trips for executives, board members and their wives to Las Vegas (to meet officials of Enterprise Ireland) and ‘insider trading’ schemes whereby former Údarás board members and top executives received money for their own organizations and projects – economic experts are questioning whether the group is fit for purpose. These concerns are especially sensitive locally as well as in Brussels as the Government decided recently it will operate the multi-million euro EU LEADER programme in the Donegal Gaeltacht where decisions on money allocation will take place over the coming months.

Some sector analysts as well as ordinary people in the Gaeltacht community say that after several decades of failure and with unemployment in the Gaeltacht at an all-time high, the economic regeneration model for the regions is simply not working and that Údarás na Gaeltachta should simply be dismantled and replaced with a new and more efficient organization, one featuring well-trained technocrats, not politically-appointed personnel.

Others say that much-needed changes are already underway, an example being the recent appointment of Letterkenny-based, former county council director of services for community, culture and planning, Micheál Ó hÉanaigh, as director of enterprise and employment, marine and natural resources at Údarás. Ó hÉanaigh, credited with launching the Donegal Diaspora project.

However, one must also note the recent reaction by Joe McHugh, Fine Gael Minister for the Gaeltacht, to the questionable activities at Údarás – he said the organization would receive an extra one million euro in public funding this year.

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To be or not to be (a Donegal councillor)

Lugh’s top three choices in the Glenties electoral area

What’s termed in America, ‘mid-term elections’ are coming up tomorrow (Friday) – and the results will indicate the future evolution of political parties and individual candidates, the direction country and counties will take and perhaps even leadership changes.

Living in Gaoth Dobhair, here’s Lugh’s take on his local area (from Dunfanaghy to Dungloe) within the Glenties Electoral area –

VOTE FOR:

Marie Therese Gallagher, Sinn Fein

John Sheamuis O’Fearraigh, Sinn Fein

Micheal Cholm MacGiolla Easbuig, Independent

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Lugh carefully analyses the candidates

Why?

Marie Therese Gallagher

Setting aside for the moment that there are simply not enough women in Irish politics today, thus a major loss to the political system as whole, Marie Therese has performed very well as a sitting council member (while, at the same time – multi-tasking comes so much easier to women than men – nurturing a delightful family). Reflecting Sinn Fein’s consistent stand on principles of fairness and social justice, she and her party colleagues remained firm against the council budget last year due mainly to Irish Water taking over local water services and people having to pay yet another government stealth tax. Fianna Fail, on the other hand, caved in, with Rena Donaghy, presenting a poor excuse for ducking the vote on the night and Independent, John Campbell, swapping sides to that of Fine Gael and Labour at the last minute.

On the issue of women in politics, Ireland remains in the Dark Ages – even more so with regard to women’s rights. Without Mary Robinson and her successor, Mary McAleese, we’d have been left with Fianna Fail’s Padraig Flynn, Charlie Haughey, Brian Lenihan’s claims that women belong in the kitchen peeling potatoes and in the bathroom changing nappies.  Yet, while some progress has indeed been made, still only 17 per cent of council seats across Ireland are currently filled by women, the worst record in Europe.

John Sheamais O’Fearraigh

John, married to Bernadette and father of three children, is a sincere, decent man, who has contributed much to the local community over the years, through his various roles, especially as a youth worker and on a number of local committees. His message is a simple one, a fine prescription for healing the wounds of society, and particularly here in Ireland: each to his abilities, each to his needs.

John spoke eloquently and passionately on national TV (TG4) a few weeks back about the urgent need for transparency and financial accountability from publicly-funded bodies such as Udaras na Gaeltachta (after the corruptive practices at the higher levels of FAS, the Garda Siochana and Rehab surely we’ve had enough of the particular Irish condition known colloquially as ‘cute whorism’). A vote for him is a vote for progress.

Micheal Cholm MacGiolla Easbuig

Micheal is both vocal and passionate about social justice and deserves credit for the way in which he has put his words into actions, including being a member of the ‘Can’t Pay, Won’t Pay’ campaign. He has organized a number of events, several of which I have attended, some of which I have enjoyed immensely. Local editors inform me he is persistent in pushing stories on diverse social issues, including anti-racism, and greater transparency on public issues, although it was bemusing that he declined to go on the air for TG4 recently to talk about spending of between one and three million euro by Udaras na Gaeltachta on a proposed addiction clinic in Falcarragh without proper benefit-investment information being presented for public analysis. Micheal has been described by some as irascible, but then again so has former Mayor and Councillor Frank McBrearty, a man who has brought up some extremely important issues in the council chamber rather than bow to that most common of Irish characteristics – aversion – a strategy that leaves truth as the ultimate casualty. Irascibility may thus be one of the most important qualities required in the chamber if councillors are to successfully fight for their corner, their supporters and their issues.

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Lugh seeks trusted advice from his elders

Candidates in the Glenties electoral area who disappointed me

 John Curran, Fine Gael

Running as a Fine Gael candidate instead of an independent (as he informed me he had been considering) has, unfortunately, been a mistake for John, making it harder for him to drum up enough votes to get over the line. Let’s be honest, John had no real choice in the matter as the party put him on the board of Udaras na Gaeltachta with an eye on propelling him forward on a rising political career, perhaps even successor to Minister of State, Dinny McGinley. The decision John took to run on a FG ticket – or was taken for him – has both pros and cons.

The cons are Fine Gael’s wretched record over the last three years and its list of broken electoral promises – ‘not another penny’ and ‘those guilty shall pay’ being its twin, pre-election mantra, which has obviously collapsed in a heap of rubble – is a hard sell. The pros – the party machine behind John’s electoral effort: more ad money; more people out canvassing; more and bigger posters.

To my mind, John had a golden opportunity to prove his individual worth – and blew it – over the proposed spending of millions of euro of public money on a church-run addiction clinic in Falcarragh. Instead of following through on the twin issues he promised as a newly-appointed Udaras board member two years ago – being a watchdog over the organization to create greater transparency and accountability on spending as well as promoting tourism based on our rich, native culture as a top priority – he has put loyalty to the organization ahead of loyalty to the people whose money it spends – some say, too wantonly and irresponsibly.

See his quote in a story published in the Donegal News: “Everyone is aware of the lack of transparency in Ireland in the past on certain matters and the unfortunate results for the country as a whole. My commitment is that in future Udaras will be completely open in its dealings so that projects – whether in culture, language or economics – are selected on merit and need, not on who certain people know. Cronyism should play no part in its affairs.”

For example, John has made little effort to inform ordinary people how much the proposed addiction clinic will cost or detail the specific community benefits to Falcarragh (as it is proposed to be located where he now lives, he could also be accused of pork barrel politics). John’s initial assertion that the clinic would create a magic 45 jobs is a simple case of political flag-waving. Basic business sense says no jobs are guaranteed until an operation is up and running, (not to mention if any, or many, jobs, will be local), so this number is a figment of the imagination.

John dipped his toe into what he thought was the cool waters of local Irish politics and it came out red and roasting. I like John as a person, so much so I gave him my Croker All-Ireland hurling final tickets last year, with no favors asked and none given (I’ve also offered game tickets to other decent people such as the two local former Gardai, Martin Ridge and Seamus Corbett; Timmy Boyle, friendly Bunbeg restaurateur and boatman, and his brother-in-law, Sabba, one of the kindest men I have met hereabouts). John and I have sat down for dinner and coffees together and held long discussions on various subjects. He had my vote, then let it slip from his grasp. With his background, John would be a help to any local community but not as a political party hack. If he’s not his own man, then he’s nobody’s man.

Seamus O’Domhnaill, Fianna Fail

A win for him in west Donegal means once again developers and bankers will celebrate victory with raised champagne glasses.

Regardless that inappropriate lending and fat bonuses for bankers, as well as developers absconding with much of the loans, has led to national economic collapse and continuing austerity, these two sectors – feeding into each other – remain O’Domhnaill’s twin political platforms.

Considering the amount of money Fianna Fail has reaped from both sectors over the years and the fact that the ‘old guard’ of the party still rules the roost, it should come as no surprise that this strategy will continue to be O’Domhnaill’s remit for years to come. If he wins, and with his brother, Brian as a Senator, his supporters within Fianna Fail hope to dominate future proceedings in their local area of Falcarragh and Gortahork. Then again, some say if Fianna Fail put up a donkey in certain parts of Donegal, it would get elected.

In conclusion, my top three choices of electoral candidates are Marie Therese Gallagher, Sinn Fein; John Sheamais O’Fearraigh, Sinn Fein; and Micheal Cholm MacGiolla Easbuig, Independent. I now cordially invite you to join me in voting for them. We missed out on making the kind of radical political changes we should have made three years ago. Let’s not miss out on it now. If we do, we’d never forgive ourselves.