Conflict of Interest with Related Party Transaction

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tmacint
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Conflict of Interest with Related Party Transaction

Post by tmacint » Tue Dec 06, 2011 6:52 pm

Hi,
Given that we are in a new era of transparency can any new directors of the ICU kindly furnish the board and members with a declaration of any potential conflict of interest or commercial interest in relation to future ICU transactions. This has previously been an issue of contention with members of the ICU executive in the past. Valid questions were raised at previous ICU AGM's on this topic and it is timely that we ensure that our officers are open and transparent in their other commercial activities, so that any future conflict can be avoided.
Yours in canoe sport,
Tadhg
ICU member

paupier
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Re: Conflict of Interest with Related Party Transaction

Post by paupier » Wed Dec 07, 2011 12:54 pm

any new directors of the ICU


Not to be overly pedantic but do you mean "Members of the Executive"?

Do you feel that there are members of the Executive that may have a conflict of interest? or is this just par for the course?

As a fellow CI member I'm just interested in why you are asking?

Paul.

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Seanie
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Re: Conflict of Interest with Related Party Transaction

Post by Seanie » Wed Dec 07, 2011 5:39 pm

In the past this law (yes, its a law) was ignored, year after year. Both directors and members of the board and executive had party related transactions with the ICU. When raised at a previous AGM it came down to Eamon Devoy not understanding what a party related transaction was and then after an explanation, promptly not having an issue with it. Without questions or reflection he declared he had no issue with something he was ignorant of 5 seconds before. Such a decisive 'leader'. He was a truly useless Chairperson.

Party related transactions represent the smoke rising from a financial mismanagement brush fire. That's why its part of company law in Ireland to declare them. It's represents the lower rung of standards a company has to abide by. The ICU needs to make a start somewhere.

tmacint
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Re: Conflict of Interest with Related Party Transaction

Post by tmacint » Wed Dec 07, 2011 6:20 pm

Thanks Seanie for the update. To be fair your reference to the former President one should include the FACT that the two members in question both denied that they had any party related transactions despite obvious evidence to the contrary. I referred, in the current situation, to Directors (they have a fiduciary duty to the board) but it should apply to all board members.
Thanks
T

leftism
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Re: Conflict of Interest with Related Party Transaction

Post by leftism » Thu Dec 08, 2011 8:56 pm

Seanie,
in fairness to Eamon, i think calling him "a truly useless Chairperson" iss way off the mark! From what i have read, your estimation of him is based entirely on your experience at AGMs, which was just one aspect of his job. Have you ever sat at a board or executive meeting? If not, then it is unfair to make such a sweeping judgement of his tenure. I would judge a president/chairperson much more critically on how they function within the team environment of board meetings. Their job is to run these meetings on a monthly, often weekly basis and ensure that the board functions in a smooth and cooperative fashion. This is not easy considering the number of contrasting disciplines which make up our sport. The fact that the board over the past year stood firm and displayed a united front against huge pressure from Mick and his band of supporters, speaks volumes of Eamon's ability to work with the board. Another aspect of the president's role is to maintain a strong working relationship with the Irish Sports Council. Like it or not, our sport relies heavily on Sports Council funding to survive. By all accounts, Eamon fulfilled this role extremely well!

My understanding is that Eamon Devoy had a huge role to play in the removal of our former CEO and sacrificed a great deal to see that process through to the end! The bottom line is if you are judging his tenure as president, ask yourself; is Canoeing Ireland better or worse off with the expulsion of Mick Scanlon? If, like me you feel that we are in a much better position now than we were 2 years ago, then you cannot call Eamon "a truly useless Chairperson"!

With regards to Tadhg's original question, i think (based on the new executive members) he is referring to Pat Macalinney's occupation. As i had mentioned previously on this forum, from reading his manifesto and hearing what other paddlers thought, my impression was that Pat would be an excellent candidate for president. It was only when i attended the AGM that i found out that Pat is the propriator of 2 adventure stores in Galway and Limerick! Did he not think it appropriate to mention this fact in his manifesto? If the owner of the Great Outdoors was running for President, i would be more than a little concerned that this may present difficulties down the line. Hypothetically, Canoe Ireland put out a contract for the ordering of 50 new plastic GPs to upgrade their fleet of training boats. You can see how this could potentially present a problem...

Look, i genuinely wish Pat the very best in his new role as Canoe Ireland president. By all accounts, he is a man of very high moral standards and would never allow something like this happen. Its just the optics of it don't look good. By presenting an open and transparent front with regards to his occupation from the outset, he might prevent any rumblings of discontent further down the line. Hopefully, he can catagorically state that there is no danger of any conflict of interest arising during his tenure and we can all rest at ease!

paupier
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Re: Conflict of Interest with Related Party Transaction

Post by paupier » Thu Dec 08, 2011 10:25 pm

Hey Leftism, thanks for your input and clarification on your understanding of what Tadhg was getting at.

I wish people could just say what the hell they were getting at in the first place.

annie
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Re: Conflict of Interest with Related Party Transaction

Post by annie » Thu Dec 08, 2011 10:29 pm

Neil, I totally agree with Tadhg's point, and till now was racking my brains trying to figure out what he was referring to, but as someone who has known Pat for some time, you can certainly rest assured that there will be no conflict of interest. Pat is one of the few people I know who is genuinely for canoeing over himself, even at times to the detriment of his business. (Sorry Pat, don't mean to diss your business skills here) If he didn't mention his job in his manifesto, it's because he is so much more a canoeist than anything else, and I'm sure he would have welcomed any queries on it at the ADM.

Given the Board has presumably been fairly busy since elected I would be surprised any transactions have taken place to declare. Owners of businesses have in the past held various positions in Canoeing Ireland or the ICU and I am sure all of the very-recently elected Board is conscious of that and of the problems with this in the past and will ensure transparency going forward.

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Seanie
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Re: Conflict of Interest with Related Party Transaction

Post by Seanie » Thu Dec 08, 2011 10:59 pm

leftism wrote:Seanie,
in fairness to Eamon, i think calling him "a truly useless Chairperson" iss way off the mark! From what i have read, your estimation of him is based entirely on your experience at AGMs, which was just one aspect of his job. Have you ever sat at a board or executive meeting? If not, then it is unfair to make such a sweeping judgement of his tenure. I would judge a president/chairperson much more critically on how they function within the team environment of board meetings. Their job is to run these meetings on a monthly, often weekly basis and ensure that the board functions in a smooth and cooperative fashion. This is not easy considering the number of contrasting disciplines which make up our sport. The fact that the board over the past year stood firm and displayed a united front against huge pressure from Mick and his band of supporters, speaks volumes of Eamon's ability to work with the board. Another aspect of the president's role is to maintain a strong working relationship with the Irish Sports Council. Like it or not, our sport relies heavily on Sports Council funding to survive. By all accounts, Eamon fulfilled this role extremely well!

My understanding is that Eamon Devoy had a huge role to play in the removal of our former CEO and sacrificed a great deal to see that process through to the end! The bottom line is if you are judging his tenure as president, ask yourself; is Canoeing Ireland better or worse off with the expulsion of Mick Scanlon? If, like me you feel that we are in a much better position now than we were 2 years ago, then you cannot call Eamon "a truly useless Chairperson"!

With regards to Tadhg's original question, i think (based on the new executive members) he is referring to Pat Macalinney's occupation. As i had mentioned previously on this forum, from reading his manifesto and hearing what other paddlers thought, my impression was that Pat would be an excellent candidate for president. It was only when i attended the AGM that i found out that Pat is the propriator of 2 adventure stores in Galway and Limerick! Did he not think it appropriate to mention this fact in his manifesto? If the owner of the Great Outdoors was running for President, i would be more than a little concerned that this may present difficulties down the line. Hypothetically, Canoe Ireland put out a contract for the ordering of 50 new plastic GPs to upgrade their fleet of training boats. You can see how this could potentially present a problem...

Look, i genuinely wish Pat the very best in his new role as Canoe Ireland president. By all accounts, he is a man of very high moral standards and would never allow something like this happen. Its just the optics of it don't look good. By presenting an open and transparent front with regards to his occupation from the outset, he might prevent any rumblings of discontent further down the line. Hopefully, he can catagorically state that there is no danger of any conflict of interest arising during his tenure and we can all rest at ease!
Calling Eamon Devoy a truly useless Chairperson, if anything, is being kind. I find that your defense of him is very narrow and this in direct contradiction of the point you made 'considering the number of contrasting disciplines' in the ICU. The wider ICU is not depended on the ISC grants. But given your particular discipline it might seem that way.

The ICU held together over the last year or so in spite of Eamon Devoy, and not because of him. The other members of the board and executive should be credited with this. Yes, he did a great job of clearing up the mess he created. However he only cleaned up that mess when given no choice but to do so as a director of a company. Thanks to the investigations of the ICU Treasurer, Noel Tallon. Every other time alarm bells were rang before that, Eamon Devoy aggressively shut down any attempt to look into the issue.

I'm basing my opinions on his actions. To get a clearer view of Eamon Devoy as a Chairperson of the ICU consider the years before the "legal issues". If you want a quantitative view look at the ICU membership numbers. Look at the number of board and executive meetings, look at the changes he made, look at the development plans etc. etc. Then its hard to argue that Eamon Devoy has been anything but absent and ignorant for the majority of the time he was President. The ICU today reflects this neglect and lack of direction.

As for your reference to Pat, drawing comparisons with GOD is funny. I don't feel the need to defend Pat, I have no doubt his actions over the coming two years will show him to be the capable and upstanding person I have known for the past ten years.

Yes I'd be concerned if the owner of GOD was to go for president too. But that concern is based on what has happened in the past. Your use of the word hypothetically isn't needed. My concern is based on the amount of money the ICU has spent at GOD without even getting a quote form other providers, while the GOD water-sports manger was sitting on the ICU board and none of this was declared on the ICU's audited accounts. All the while Eamon Devoy happily signed those accounts, even after objections.

Pat MacAlinney
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Re: Conflict of Interest with Related Party Transaction

Post by Pat MacAlinney » Fri Dec 09, 2011 12:09 am

Hi Everyone,

That first posting was clear as mud, but maybe that was the intention...please, if you've something to ask then just ask it.

For the record, to the best of my recollection in twenty two years I have never had any business dealings with the ICU.

I've not been asked to tender for equipment, let alone ever been granted a tender. That is something I could never figure out ;) , Dublin bias?

I think I've been asked maybe twice for small thank you gift vouchers to local paddlers from the ICU.

Annie is correct in that often times my involvement in canoeing has sometimes been detrimental to my business. It's a hell of a lot easier to stock and sell boots than boats!

I have over the years freely volunteered my time and modest expertise to the TDU, Freestyle committee and my local clubs and will continue to do so.

I did not think what I did for a living mattered as I have had no dealings with CI. I also presumed (wrongly I see) that people knew what I did for a living.

Some very honourable people asked me to run because they thought I would be a good President, I hope to live up to that trust.

I will take advice as to whether it is necessary for me to so declare a conflict of interest, and if it is, I will of course fill in the relevant paperwork and make that declaration.

From my perspective it won't be an issue as I won't allow it to arise.

There are a lot of people who have worked for or been granted contracts, or been paid for coaching by the ICU over the years, I would hope that that would not preclude them from ever getting involved in our organisation.

If you have any specific concerns please call or PM me, I'm happy to speak to anyone.

Yours in Paddlesport,

Pat MacAlinney

keithmcguirk
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Re: Conflict of Interest with Related Party Transaction

Post by keithmcguirk » Fri Dec 09, 2011 12:26 am

I have to say Pat as a Dublin paddler I'm a little worried about your references to Dublin in a negative way.

I find it strange that a President of a Countrywide organisation would voice that kind of opinion on a public forum?


But hey, maybe thats just me

Keith

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Seanie
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Re: Conflict of Interest with Related Party Transaction

Post by Seanie » Fri Dec 09, 2011 12:57 am

I'm pretty sure he's statement is directed at the ICU, not Dublin.

leftism
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Re: Conflict of Interest with Related Party Transaction

Post by leftism » Fri Dec 09, 2011 3:14 am

Regarding my Great Outdoors reference (that is a lovely little accronym by the way! Who's invention was that? ;) ), whoever was or is contracted to buy the boats, helmets, lifejackets, whatever, surely you can see how it looks from the outside having their direct competitor heading our federation! And just to clarify, i'm in no way biased here! I am proudly oblivious to all adventure shops and don't foresee ever shopping in either establishment (unless i take up rock climbing or something).

Just to give you an example, the current president of the Portuguese canoe federation, is related to the manager of a major kayak manufacturer there. When he was elected, all hell broke loose and accusations of corruption, scams etc were thrown about the place. This guy is an excellent president and has done much to further the sport in their country, but these accusations did not make for a good start and have dogged his tenure since. And thats just the brother of a guy that works in a boat factory!

Seanie, you already mentioned:
Seanie wrote: My concern is based on the amount of money the ICU has spent at GOD without even getting a quote form other providers, while the GOD water-sports manger was sitting on the ICU board and none of this was declared on the ICU's audited accounts.
Pat has also mentioned
Pat MacAlinney wrote:
I've not been asked to tender for equipment, let alone ever been granted a tender. That is something I could never figure out ;) , Dublin bias?
So the solution??? Just take over the gaff and run the whole thing ourselves. And make sure we get someone into the CEO job that will be more ammeanable in that regard. I'm not for a second suggesting that this was the motive, but the optics of it just look terrible!
Seanie wrote: Yes I'd be concerned if the owner of GOD was to go for president.
So just to summerise, you wouldn't be satisfied with the owner of one adventure store heading Canoeing Ireland, but having their direct competitor running the show is just fine and dandy?

My opinion? I wouldn't really be happy with ANY owner of an adventure store heading our federation unless there was full and complete disclosure of this information on record. To date i do not believe it is on record and i certainly don't recall Pat making any reference to it at the AGM or in his manifesto. Whether or not a conflict of interest ever arises is besides the point! A full declaration should be made to avoid the possibility for future problems.

Pat has mentioned that he will take advice on this matter and i welcome his response. I would plead with him to seek advice from the CI board at the next meeting. Lets not start a new chapter of Canoeing Ireland in a similar fashion to the way we concluded the last one....

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Seanie
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Re: Conflict of Interest with Related Party Transaction

Post by Seanie » Fri Dec 09, 2011 8:25 am

leftism wrote:
Seanie wrote: Yes I'd be concerned if the owner of GOD was to go for president.
So just to summerise, you wouldn't be satisfied with the owner of one adventure store heading Canoeing Ireland, but having their direct competitor running the show is just fine and dandy?
No. Your summary is wrong. And you miss quoted me. This is what I said:
Seanie wrote:Yes I'd be concerned if the owner of GOD was to go for president too. But that concern is based on what has happened in the past. Your use of the word hypothetically isn't needed. My concern is based on the amount of money the ICU has spent at GOD without even getting a quote form other providers, while the GOD water-sports manger was sitting on the ICU board and none of this was declared on the ICU's audited accounts. All the while Eamon Devoy happily signed those accounts, even after objections.


To be clear on this topic. I expect every ICU party related transaction to be declared on the audited accounts. I expect every large purchase to go to tender and I expect every persons with a conflict of interest to excuse themselves from the process. No matter who they are.

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