Peter McVerry Trust CEO quits amid financial crisis
Boss exits after four months due to ‘repeated governance failings’
THE chief executive of the Peter McVerry Trust (PMVT) has resigned, claiming that ‘repeated and long-standing governance failings’ brought the charity to the brink of collapse.
Just four months after taking on the role, Francis Doherty has decided to step down, stating that the charity’s board made his position ‘untenable’.
It comes after the trust revealed last month that it was ‘experiencing cashflow pressures’, which are now under investigation by the Approved Housing Bodies Regulatory Authority (AHBRA).
The organisation, which provides homelessness services across the country, reported an income of around €60million last year.
In his resignation letter, Mr Doherty stated that ‘repeated and long-standing governance failings’ over several years had left the charity close to ruination.
He added that upon taking on the role of CEO earlier this summer the trust had ‘insufficient funds to meet creditor, payroll and Revenue commitments’.
The letter to chair of the board, Deirdre-Ann Barr, went onto say the charity had been facing ‘imminent financial collapse’ by July, but managed to stay afloat through the sale of properties.
This included the sale of a property for €1million in Santry, north Dublin, along with plans to obtain a further €5.85million from the sale of additional assets.
Referring to ‘repeated and longstanding governance failings’, Mr Doherty said the findings from auditors PwC noted that the charity’s financial problems had arisen over a number of years. He said a substantial amount of other concerning financial matters posed a ‘potential risk to the organisation’, citing a reluctance from the board to communicate openly with executives at the PMVT.
However, Mr Doherty commended the work of the charity’s staff, saying his decision to step down was not ‘taken lightly’.
He wrote: ‘I am immensely proud of the great work our staff do to better the lives of people on the margins. Yet I find that my position is now untenable.
‘I sincerely hope that swift action can be taken to protect the services of the charity, its service users and staff’.
In a statement, the PMVT confirmed Mr Doherty’s decision to tender his resignation, expressing disappointment over this. ‘Our focus remains on the future of the organisation,’ it said.
‘We will cooperate with all stakeholders to achieve that as best as possible. Continuity of care for our participant group remains our priority. We are disappointed with Francis’s decision but we wish him well after what has been a difficult period for him.’
Mr Doherty had worked with the organisation since 2012 when he originally joined as a communications officer.
Last month, it was revealed that the charity’s board rejected a proposal by Mr Doherty to appoint businessman David Hall and two other people to the board.
The organisation wrote to the AHBRA in July this year to notify it of significant cashflow issues and has been engaging with the regularity body since then.
A spokesman for the charity said at the time: ‘We can confirm that we received notice this afternoon of a decision by AHBRA to appoint inspectors to the charity.
‘This is an important part of transparency and accountability for our organisation, and we will work with the inspectors and AHBRA in the best interest of the over 2,000 service users and tenants as well as the staff that support them.’
‘Our focus remains on the future’