The Property Services Regulatory Authority imposed considerable monetary fines on two livestock markets following evidence of their separate misconduct. Ballybay Livestock Sales, officially known as Corcaghan Co-operative Agricultural & Dairy Society in Co Monaghan, was ordered by the High Court president to pay a sum of €13,000. Meanwhile, Mountbellew Regional Co-operative Livestock Mart Society, located in Co Galway, was instructed to pay €11,000.
The regulatory authority, responsible for overseeing and licensing within this industry, had sought these substantial financial penalties. The Galway mart on Ballygar Road, Moutbellew, Ballinasloe, was subject to an investigation initiated by the authority in November 2021.
Subsequently, in February 2023, the authority obtained a temporary halt to the mart’s operating license and succeeded in freezing its accounts due to a shortfall in the client account. However, the judge revoked these orders a week later when informed that the deficit had been overcome through a community fundraising push that accrued €183,000. Also, the mart pledged to the court to put numerous fiscal controls in place.
This week, the court was made aware of a client account deficit of approximately €220,000 to €230,000, originating from a substantial default in 2011/2012.
Zoe Richardson, a barrister from Fieldfisher representing the authority, stated judge that the mart had temporarily used non-client funds for its license renewal between 2016 and 2022, a move which camouflaged the deficit in the account. Consequently, the authority was deceived for multiple years and there was also a neglect in bookkeeping and maintaining correct accounts.
Ms. Richardson highlighted a few mitigating factors, such as the marts’ admission of guilt, the absence of any client suffering financial loss, and no liability claims against the State compensation fund. The authority hence ruled such conduct deserving of a “major” financial fine of €11,000 in the hope it would also act as a deterrent. The court was informed by the authority that it was content with the newly implemented financial policies.
Finn Keyes, a Barrister giving legal representation to Mountbellew mart, acknowledged profound regret over his client’s actions, stating that full cooperation had been rendered throughout the investigation process. He was emphatic that no individual had financially benefited or lost as a result.
The seriousness of the behaviour was acknowledged by the mart and they have pledged to prevent recurrence, according to Keyes.
In a separate development, last March, the Corcaghan Co-operative at Main Street in Ballybay came under investigation, mentioned its board chair, Michael Quinlan, in an affidavit presented to the court.
After the authority declared apprehensions about unpaid debts ranging from €480,000 to €490,000, the High Court in November 2021 suspended the licence of the mart for a week. Factoring in uncashed cheques from the business would increase this debt to a staggering €690,000, court reports unveiled.
Court was persuaded by the new management of the mart that by adhering to conditions established with the authority, trading out of its financial challenges was a viable option.
The deficit has been successfully addressed, declared Quinlan, highlighting managerial changes at the mart between 2019 and 2020. Omissions in office procedures were unavoidable due to constant absences and as a result, fallen foul of the required standards.
Specifically, due to the mart’s failure to have engagement letters in place, holding machinery auctions, lacking proper accounting records, and breaching the Client Moneys Regulations with the way it operated client accounts, the authority concluded improper conduct was evident.
However, Quinlan clarified that members of the mart’s committee were not accused of being part of the irregularities mentioned in the report nor was there intentional misconduct by the current administrators.
The authority’s inspector confirms adherence to the Client Moneys Regulations, with stringent policies and procedures instituted for financial management. Quinlan also reassured that no client has suffered a loss, nor has anyone filed a compensation claim on the State fund. The Mart’s full cooperation with the investigation was reiterated.
Unless convinced otherwise, Justice David Barniville concluded that he must uphold the authority’s recommendations. He was in agreement that both projected penalties were justified and appropriate.