Annual Report 2008

Enquiry regarding donations disclosed pursuant to section 26 of the 1997 Act

Section 26 of the 1997 Act provides that a company must include in its annual report/return to the Companies Registration Office (CRO) details of all donations made by the company during the year which exceeded €5,078.95 in value. The report/return must identify the value of each such donation, and the person to whom the donation was made.

It was brought to the attention of the Standards Commission that the following donations disclosed by Gannons City Recovery & Recycling Services Limited (Gannons) on its annual report/return for 2005 were not disclosed by the recipients:

• Donation of €9,600 to Fianna Fáil
• Donation of €2,500 to Senator Ivor Callely (Senator Callely was a TD in 2005)
• Donation of €1,500 to "Jim Glennon fund" (Mr. Glennon was a TD in 2005)

Fianna Fáil

The Standards Commission wrote to the appropriate officer of Fianna Fáil asking him to explain why the donation from Gannons was not included on the party's Donation Statement for 2005. The Standards Commission was informed by Fianna Fáil that the donation from Gannons represented payments of €7,800 and €1,800 respectively to attend two separate fund-raising events. These events yielded profits of 47% and 39% respectively. The net value of the contributions from Gannons in each case was €3,666 and €702. The total net value of these contributions was €4,368. This was below the disclosure threshold of €5,078.95 and was not required to be disclosed. (Whereas a company must disclose the gross value of donations to fund-raising events on its annual report/return, the recipient is only required to disclose the net value of such contributions.)

Senator Ivor Callely

On his Donation Statement for 2005, Senator Callely had disclosed a donation of €1,500 (gross value) from Mr Anthony Gannon for a fund-raising event. The Standards Commission wrote to Senator Callely asking him to explain why the amount disclosed on his Donation Statement differed from the amount disclosed by Gannons on its return to the CRO. Senator Callely informed the Standards Commission that a donation of €1,500 had been received from Mr Anthony Gannon in 2005. He suggested that a donation of €2,500 may have been made by Gannons to a Dublin North Central fund-raising event for the European election campaign.

On his return for 2005 the "responsible person" of the Fianna Fáil Dublin North Central accounting unit, Mr Thomas Loomes, had informed the Standards Commission that no donations had been received by the accounting unit during 2005. The Standards Commission wrote to Mr Loomes asking him to clarify whether a donation from Gannons had been received in 2005. Mr Loomes confirmed again in writing to the Standards Commission that no donations were received by the branch from Gannons.

The Standards Commission subsequently wrote to Gannons asking the company to confirm the donations made to Senator Callely. (Senator Callely informed the Standards Commission that he had also asked Gannons to clarify the amount of the donation made to him.) Gannons subsequently clarified that the company's annual report/return had incorrectly attributed a donation of €1,000 which was given to Mr Callely for Fianna Fáil on 8 April 2005 as a donation to Mr Callely. The report/return should have indicated donations of €10,600 for Fianna Fáil and €1,500 for Mr. Callely. Gannons confirmed that the only donation made to Senator Callely was the donation of €1,500 which he had disclosed.

A further letter issued to Senator Callely informing him of the clarification provided by Gannons. In view of the fact that neither Fianna Fáil's appropriate officer nor Mr Loomes had referred to the donation of €1,000 given to Senator Callely for Fianna Fáil in their correspondence with the Standards Commission, Senator Callely was asked to confirm whether he had received the donation of €1,000 from Gannons for Fianna Fáil, and if so, whether he had passed it to Fianna Fáil HQ or to a branch of the party.

Senator Callely subsequently informed the Standards Commission that he understood from his enquiries that a donation of €1,000 was presented to his office by Gannons. He further stated that in view of the admission of error by Gannons in its annual report/return, and in order to bring closure to the matter, he had forwarded a cheque for €1,000 to Mr Loomes. He stated that he had no record of receiving the donation of €1,000 from Gannons and that his Donation Statement for 2005 had been made in good faith.

The Standards Commission wrote to the appropriate officer of Fianna Fáil informing him of its enquiries with Senator Callely and with Gannons. In view of the information provided by Gannons and the payment subsequently made to Fianna Fáil Dublin North Central by Senator Callely, the total value of donations received by the party from Gannons in 2005 was deemed to be €5,368 (€4,368 for fund-raising events and €1,000 given to Senator Callely for Fianna Fáil). This was above the disclosure threshold of €5,078.95. While the Standards Commission did not consider that Fianna Fáil's then appropriate officer had contravened the legislation by failing to disclose the donations from Gannons, it was of the view that the party should now furnish a supplementary Donation Statement for 2005. This supplementary Donation Statement was received and laid before the Houses of the Oireachtas on 16 October 2008.

Mr Jim Glennon

Mr Glennon had furnished a "nil" Donation Statement for 2005. He had included with his Donation Statement details of a fund-raising lunch held during 2005. The Standards Commission wrote to Mr Glennon asking him to explain why the donation from Gannons had not been disclosed on his Donation Statement. If it was the case that the donation was a contribution to a fund-raising event, Mr Glennon was asked to advise what the net value of that contribution was and how that figure was arrived at.

A reply was received from Mr Glennon in which he confirmed that a contribution of €1,500 for a fund-raising lunch was received from Gannons in 2005. This was in respect of ten paying guests. He had calculated the net value of this contribution at €610.30. As this was below the disclosure threshold of €634.87 he had not disclosed the contribution. In reviewing how the net value of an individual contribution to this particular event was calculated, the Standards Commission considered that the correct net contribution was €75.65 per paying guest. The net value of the contribution from Gannons, therefore, was €756.50.

Mr Glennon was advised of the correct calculation of the net value of Gannon's contribution and was requested to amend his Donation Statement. A supplementary Donation Statement was received from Mr Glennon and laid before the Houses of the Oireachtas on 3 November 2008. The Standards Commission was satisfied that Mr Glennon had not knowingly furnished a false or misleading Donation Statement.

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