Second CEO gave loan of € 100k for sports association



[ad_1]


Warren Deutrom, who has been CEO of Cricket Ireland since 2006, made the short-term loan in October so that employees and some creditors could get paid. Photo: Sportsfile
Warren Deutrom, who has been CEO of Cricket Ireland since 2006, made the short-term loan in October so that employees and some creditors could get paid. Photo: Sportsfile

Cricket Ireland received a loan of € 100,000 from its chief executive last year after encountering significant cash flow problems, the Sunday Independent reported.

Warren Deutrom, who has been CEO of Cricket Ireland since 2006, made the short-term loan in October so that employees and some creditors could get paid. The loan was repaid on December 7 last.

According to documents seen by the Sunday Independent, "the loan was duly documented in a loan agreement at the time."

However, the council was not informed until recently, after details of John Delaney's controversial € 100,000 loan to the FAI became public.

Deutrom is one of the most respected sports administrators in the country and there is no suggestion of any irregularity on his part.

At the time of the loan, Cricket Ireland was seeking a payout of almost $ 1 million (€ 890,000).

In October 2018, senior management officials voluntarily deferred payments due to them to help ease the cash flow problem. Speaking to the Sunday Independent last night, Deutrom said: "It was a very difficult time, no question about it. It was very stressful."

Details of the loan will be recorded in the financial accounts of Cricket Ireland.

In a briefing note to board members earlier this month, Bill Cunningham, chair of the Cricket Ireland financial committee, says that while previous meetings were discussing cash flow issues, "pressure on money" became "acute" in October and November 2018 ".

Mr. Cunningham says Mr. Deutrom offered a short-term loan of € 100,000 "having exhausted all other potential sources of funds". Before the loan was made, Mr. Deutrom consulted Ross McCollum, the chairman of the board, and Mr. Cunningham. John Treacy, CEO of Sport Ireland, was also briefed.

It is understood that Sport Ireland has made openings for emergency funding on behalf of Cricket Ireland. However, Sport Ireland was not in favor of the loan.

Mr Cunningham sought the opinion of Beauchamps Solicitors and ruled that Mr Deutrom was "legally permissible" to provide the loan. Deutrom raised the issue again last month with Mr. Treacy, Mr. McCollum, Mr. Cunningham and Anne Nolan, chairman of the governance committee of Cricket Ireland. In the briefing note, Mr. Cunningham says that this was done "after the release of a loan from John Delaney, the FAI chief executive, to that organization and the negative publicity that this subject attracted."

Cricket Ireland again advised itself on the loan and warned the company's auditors. The advice received was that since Mr. Deutrom was not a director and the loan had been paid before the end of the financial year, "no disclosure would be required in the financial statement." However, they were also advised to warn the council. Separately, Cunningham says John Treacy advised Cricket Ireland to make a full disclosure on its 2018 financial statements.

During Mr. Deutrom's term as CEO, he oversaw a radical review of the game in this country.

Coming soon: the new Independent.ie GAA newsletter. Sign here

Independent Sunday

[ad_2]

Source link