James Reilly featured in Stubbs as a defaulter. Part of a group of 5

[DCon]

Story here http://www.independent.ie/national-n...t-3165020.html

In an unprecedented development for a sitting cabinet member, he will be named this morning in the latest edition of the debt-monitoring magazine 'Stubbs Gazette'.

It follows a nursing home investment deal, motivated by a lucrative tax break, which turned sour last year.

The High Court ordered Dr Reilly and four others to pay €1.9m to purchase the nursing home in Co Tipperary, which they first invested in 12 years ago.

The tax-driven investment deal involved a well-heeled syndicate of professionals, including doctors, solicitors, architects and engineers.

Dr Reilly insists he will pay his share of the bill, but gave no indication of when this would happen.

Dr Reilly and the others consented to the €1.9m judgment, meaning they accept the debt is owed.

In response to a series of questions from the Irish Independent last night, Dr Reilly's spokesman contacted the minister in Cyprus and issued the following statement:

"On assuming office -- and in accordance with the Standards in Public Office Commission -- Dr James Reilly handed over power of attorney to his solicitor in relation to his business interest in this property.

"A court case earlier this year, related to the property, resulted in an agreement that Dr Reilly and four co-investors would buy out the interests of another group of investors. That judgment of the court is not in dispute.

"The parties are now seeking to agree the methodology for the payment of the sums due on foot of the judgment.

"Dr Reilly has nothing to do with the ownership of the nursing home business on the property.

"Dr Reilly's political colleagues are aware of his involvement in the property transaction and of his wish to divest himself of his interest as soon as agreement can be reached."

Most of the 13, including Dr Reilly, put up £60,000 -- equal to around €76,000 -- of their own money to join the consortium, while one investor contributed £30,000.

The group then borrowed €1.9m from Bank of Ireland to help finance the development.

[DCon]

Fionnan on the Pat Kenny show discussing this.


Seems 5 of the Investors, including Reilly, agreed to buy out the ones who were purely in it for the tax breaks after the 10 year tax break ran out.

The cost to be paid was agreed during the boom, but the 5 wanted to pay less when said ar$e fell from the property market, and the dispute on the price was taken to the court.

An agreement was made and Reilly and the other 4 have not yet made good. The plaintiffs took a registered judgement and this has affected the credit rating of the group of 5. Stubbs based their decision on this.

[DCon]

Councillor Devitt also involved

One of the four business partners is a former Fine Gael councillor, Anne Devitt, who resigned from the party after the Mahon Tribunal found her actions were "entirely inappropriate".

[TotalMayhem]

Dr Reilly has nothing to do with the ownership of the nursing home business on the property.

Ah, that's OK then...

[ang]

FF & SF have both issued statements on this - What about Labour ?

http://insideireland.ie/2012/07/10/j...y-adams-76607/

Let us not forget Mr Reilly has presided over the closure of over 500 public nursing home beds this year whilst having a vested interest in a property facilitating private nursing home care it is a conflict of interest no matter how the minister tries to spin it.

[Slim Buddha]

FF & SF have both issued statements on this - What about Labour ?

http://insideireland.ie/2012/07/10/j...y-adams-76607/

Let us not forget Mr Reilly has presided over the closure of over 500 public nursing home beds this year whilst having a vested interest in a property facilitating private nursing home care it is a conflict of interest no matter how the minister tries to spin it.

What is it with Health Ministers and conflicts of interest??? There was a serious problem with his predecessor too!!!

[Greengoddess]

In my view it is entirely unacceptable for a MOH to own nursing homes, power of attorney or not. Times have certainly changed. My father, who was a bit of a penny pincher, had a mortal fear of " going in to Stubbs" for the shame of it while in politics . I thought for years it was some kind of prison!

[DCon]

Adams

Health Minister Dr James Reilly is not fit for his role, after being named a debtor in Stubbs Gazette, Sinn Fein president Gerry Adams has suggested.

The minister, at a European meeting in Cyprus, has been shamed in the magazine over a 1.9 million euro nursing home investment which turned sour.

Mr Adams said Dr Reilly had questions to answer over why he ran up a debt which can be linked to the private healthcare sector.

"It is a fact that the minister for health is taking decisions which benefit private health care," said Mr Adams.

http://www.independent.ie/breaking-n...r-3165463.html

[Baron von Biffo]

A number of issues arise here:-

• Is it appropriate for a person with debt problems to serve as a minister?
• Should a person remain serve as a minister if they ignore court judgements?
• Are there any conflicts between Reilly's business and ministerial responsibilities?
• Is it acceptable for a government that cuts services to avoid defaulting on debts the taxpayer didn't run up to have a debt defaulter in cabinet?
• If Reilly's private interests are in such a shambles, is he capable of managing his department?

Time for Gump to look for a replacement I think.

[DCon]

Enda leaps to his defence

Enda Kenny said Dr Reilly's business affairs were entirely in order and that the minister had no difficulty in making a Dáil statement on the affair.

Mr Kenny said he spoke to James Reilly this morning, who had briefed him on the judgment registered against the minister and his consortium.

The judgment was made over their failure to complete a deal involving a private nursing home in Tipperary.

The Taoiseach told Sinn Féin's Gerry Adams the judgment had been perfectly legitimate and properly registered but did not mean that the money outstanding - some €1.9 million - would not be repaid.

In a statement, Dr Reilly said on assuming office he had handed power of attorney to his solicitor to deal with the matter and that power had been passed on to a third party.

http://www.rte.ie/news/2012/0710/jam...t-default.html

[Baron von Biffo]

Enda leaps to his defence

Enda Kenny said Dr Reilly's business affairs were entirely in order and that the minister had no difficulty in making a Dáil statement on the affair.

http://www.rte.ie/news/2012/0710/jam...t-default.html

What utter nonsense. If his affairs were in order he wouldn't be in Stubbs.

[DCon]

What utter nonsense. If his affairs were in order he wouldn't be in Stubbs.

It seems in Enda World that agreeing to pay a debt is the same as actually paying a debt. If you are one of his loyal supporters

[Baron von Biffo]

It seems in Enda World that agreeing to pay a debt is the same as actually paying a debt. If you are one of his loyal supporters

He should try that with the Troika.

[DCon]

The Herald says Reilly owes 25% of the money

Dr Reilly and his partners were ordered to pay the €1.9m after they reneged on a deal to buy the nursing home from the other investors in 2010.


The minister himself owes 25pc of the investment itself.

http://www.herald.ie/news/minister-n...d-3165244.html

[Baron von Biffo]

DriveTime now.