'Completely and utterly unacceptable' - IHRB criticised for delayed investigation into serious financial concerns

The delay in the production of a report investigating the "grave" financial issues at the Irish Horseracing Regulatory Board (IHRB) was labelled "completely and utterly unacceptable" in an Oireachtas Committee hearing on Wednesday evening.

In June, a Public Accounts Committee (PAC) hearing was told that chief financial officer Donal O’Shea’s absence from the meeting was linked to “governance around financial transactions”. The IHRB's chief executive Darragh O'Loughlin revealed that in his preparations for the hearing he detected a matter of "grave concern" that led to O'Shea being granted voluntary leave with immediate effect.

Auditing and accounting firm Mazars was tasked with carrying out an investigation into the matter but O'Loughlin revealed on Wednesday the process was ongoing, while he also confirmed O'Shea remains on voluntary leave.

In his opening statement, O'Loughlin said: "This review, which is ongoing, involves a thorough examination of six years' worth of financial and other records, and interviews with relevant individuals. Once concluded, which we anticipate should be within weeks, the findings will be published and the recommendations will be acted upon."

Jackie Cahill, chair of the Oireachtas joint committee on agriculture, food and the marine, was highly critical of the delay to the review.

He said: "I just find the time lapse completely and utterly unacceptable. There are serious questions here to be asked about how this happened and the time lag is definitely doing no good to anyone and definitely doing no good to the reputation of the IHRB. 

"I’m not happy this isn’t concluded. I accept fully you are new in your post, but when there are such issues of public concern, in my view, this report should be well finished at this stage and the recommendations thereon should be on the table.”

Denis Egan: former IHRB chief executiveCredit: Patrick McCann

Cahill also took issue with O'Loughlin stating that no "personal gain" arose from the financial issue, referencing former chief executive Denis Egan.

However, O'Loughlin argued the issues were unrelated, and said: "I don’t want to conflate the issue of concern that came to our knowledge in June with the retirement of the former CEO. The former CEO’s retirement package was outlined clearly in the annual report, in the financial statements for 2021 and there's controversy around the additional payment he received, over and above the scheme that was in place at the time.

“We acknowledge there was this controversy, the additional monies that he received were paid by the turf club and the Irish National Hunt Steeplechase. Those monies weren’t state monies. There was no misapplication of state money."

O'Loughlin told the committee additional funding in the region of €1.2 million was required to implement outstanding recommendations as a result of an independent review by Dr Craig Suann into the IHRB's equine anti-doping programme.

He said: "Dr Craig Suann reported that we at least match international best practice but he made a number of recommendations. There were 18 and the majority of those have been implemented. Some of the high-priority ones require additional funding as they require additional testing. We've costed it and presented those costings to Horse Racing Ireland (HRI) and the department but we can only operate within the budget we have. If additional resources become available, we will be able to fund the outstanding recommendations. 

The committee also heard from Dr Lynn Hillyer, chief veterinary officer at the IHRB, regarding 11 adverse findings in their anti-doping programme in 2022. After questioning from Cahill and senator Paul Daly, it was revealed seven training establishments were responsible for these findings.

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