€40m in donations to McVerry Trust were diverted to cover debts and expenses, Prime Time reveals

Internal documents obtained by RTÉ Prime Time reporters from inside one of Ireland's largest housing and homelessness charities, the Peter McVerry Trust, have shown significant breaches of trust between it and donor organisations, and cast new light on issues raised about its corporate governance.

The Prime Time report, airing tonight at 9.30pm, will examine internal documents seen by RTÉ reporters from the Peter McVerry Trust revealing significant breaches of trust in the use of donated money.

According to Prime Time, Internal documents from the Trust indicate that over a six-year period, up to €40 million in restricted donations, designated for specific purposes, were diverted for other purposes, including to cover debts or other spending by the charity.

The charity is currently under investigation by both the Charities Regulator and the Approved Housing Bodies Regulatory Authority. Internal documents from the Trust indicate that over a six-year period, up to €40 million in restricted donations, designated for specific purposes, were diverted for other purposes, including to cover debts or other spending by the charity.

In September 2022, the Capuchin Day Centre for Homeless People charity donated €4.73 million to the McVerry Trust. The donation came with strict conditions dictating how it was to be spent. Those conditions were outlined in a 25-page legal agreement between the Peter McVerry Trust and the Capuchin Day Centre. Specifically, €1.6 million of the donation was earmarked to buy a large named property in north Dublin for housing unaccompanied minors fleeing war in Ukraine. However, just two weeks after signing the agreement in October 2022, the then CEO of the Peter McVerry Trust emailed the then head of finance instructing that €1.6 million be transferred from the Capuchin Restricted Capital Account to the Capital Development Account.

An internal finance report reveals that over €1.3 million of the Capuchin donation was immediately used to pay running costs and charity debts, including over €700,000 owed to the Revenue Commissioners and €500,000 to two other creditors of the McVerry Trust.

“This was a betrayal of trust,” said Jillian van Turnhout, a Chartered Director Certified in Corporate Governance. “The Capuchins had given the money for a very specific purpose. It was explicit,” To see an email that “violates that agreement in such a short space of time and such a clear manner, it makes me question, where were the controls in place in an organisation that one person could instruct in that way?”

Additional discrepancies include €1.2 million donated to purchase three properties for homeless families and €1.5 million for a large North Dublin facility to support homeless individuals with chronic health issues, both of which were not used as intended. Moreover, €350,000 of the Capuchin money was transferred to NDP Counselling and Psychotherapy, a non-profit organisation with no commercial or service link to the McVerry Trust. It is unclear why such a large sum of money was transferred to NDP as it did not provide services to the Peter McVerry Trust.

Speaking about this David Hall, businessman and charity campaigner said, “There was no commercial link, there was no service link, in relation to the Peter McVerry Trust and this other counselling service.”

Only 9% of the Capuchin donation, or €430,000, was used as specified, according to a document from September 2023. The legal agreement with the Capuchins allows them to demand repayment if the donation is not used as agreed.

The Peter McVerry Trust declined to comment on questions from Prime Time but stated it continues to cooperate with regulatory investigations and remains committed to supporting approximately 3,000 individuals, families, and children weekly.

Tonight’s Prime Time report is by reporter Paul Murphy and producer Isabel Perceval.

The full report will be aired on Prime Time tonight at 9:35pm on RTÉ One and RTÉ Player.