Mattie McGrath accuses 'paper company' over Dundrum House Hotel deal
Mattie McGrath criticised the awarding of a large accommodation contract related to Dundrum House Hotel and demanded transparency over the process. He alleged a newly formed company, Old Hansa Limited, incorporated in Spain last January, was awarded a £20 million taxpayers' contract and attacked the government's handling of the matter.
McGrath told the chamber he was appalled that the minister responsible left and accused the Government of evading questions. He said there was a lack of transparency and described the contract award as a misuse of taxpayers' money.
He named Old Hansa Limited as the company awarded the contract, saying it was newly formed in Spain last January with a single director, Ms Ana Maria Fernandos Sanchez, who had a declared income of €120. He repeatedly cited a contract value of £20 million and called the firm a "paper company".
McGrath raised reports of legal actions, saying there were three cases in the courts this week involving receivers and funders and referred to the Dundrum Heritage Company and local people affected. He warned that 277 applicants had been placed into a village of 200 people and accused the deal's backers of prioritising profit over residents' wellbeing.
A departmental spokesman answered on behalf of the minister and said the Merriman Hotel in Kinvara will provide 98 beds for families seeking international protection, noting prior use for beneficiaries of temporary protection. The department said community engagement has been extensive, including briefings since March and a formal briefing note sent on 15 April naming the accommodation provider and services.
The department response noted Dundrum House Hotel ceased hotel operations in 2015 but has provided accommodation under contract since 2022, with a peak capacity of 270 people from Ukraine and more than 50 international protection applicants since last summer. It confirmed a new contract would provide accommodation for up to 277 people and said offers are considered from tax-compliant entities subject to statutory requirements, minimum standards and departmental due diligence.
Main allegations
McGrath told the chamber he was appalled that the minister responsible left and accused the Government of evading questions. He said there was a lack of transparency and described the contract award as a misuse of taxpayers' money.
Company details and contract value
He named Old Hansa Limited as the company awarded the contract, saying it was newly formed in Spain last January with a single director, Ms Ana Maria Fernandos Sanchez, who had a declared income of €120. He repeatedly cited a contract value of £20 million and called the firm a "paper company".
Legal and local concerns
McGrath raised reports of legal actions, saying there were three cases in the courts this week involving receivers and funders and referred to the Dundrum Heritage Company and local people affected. He warned that 277 applicants had been placed into a village of 200 people and accused the deal's backers of prioritising profit over residents' wellbeing.
Department response on accommodation arrangements
A departmental spokesman answered on behalf of the minister and said the Merriman Hotel in Kinvara will provide 98 beds for families seeking international protection, noting prior use for beneficiaries of temporary protection. The department said community engagement has been extensive, including briefings since March and a formal briefing note sent on 15 April naming the accommodation provider and services.
Dundrum House Hotel history and capacity
The department response noted Dundrum House Hotel ceased hotel operations in 2015 but has provided accommodation under contract since 2022, with a peak capacity of 270 people from Ukraine and more than 50 international protection applicants since last summer. It confirmed a new contract would provide accommodation for up to 277 people and said offers are considered from tax-compliant entities subject to statutory requirements, minimum standards and departmental due diligence.
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Transcript
I'm appalled, Minister, that the Minister left this chamber 20 minutes ago, Minister Norma Foley, who's responsible for this. She fled, but she can't hide from the people. It's disgusting to treat elected representatives like this. If she wasn't here, I'd say something, but she was here all evening in this chamber. The contract has some very serious questions in this hotel in Dundrum House Hotel. Extremely concerned about the lack of transparency in relation to the matter. We need to know how such a contract has been awarded to Old Hansa Limited, a newly formed private company, incorporated in Spain last January. The company lists a single director, Ms Ana Maria Fernandos Sanchez, with a declared income of €120. This contract for £20 million of taxpayers' money, signed in such a fashion. The Tarnisher stood there, Deputy Minister Tarnisher Harris, and told me some months ago that this was all paused and would be paused. I've been running after Minister O'Callaghan, who will have responsibility for this on May Day. May Day is two days' time, and Minister Foley has it now. She wouldn't deal with it. Somebody signed this contract with a cheery, dodgy company, who are before the course. Three cases in the course this week, across the river here. Three cases with the receivers, with the funders for the company, and indeed with the Dundrum Heritage Company. I salute the Nina O'Dundrum in Tibberdon. Decent people. But the blagarding has gone on here. This is taxpayers' money. 20 million contract. 20 million in taxpayers' money with a company, a paper company. That's not there. We know it is the same owners who have it, and the people who have been dealing and blagarding, and not interested in the well-being of White House people. Interested in the greasy pockets. And I'm shocked that the government here can wash their hands like punches piled. That's what it is, Minister Foley, to evade this question. Minister O'Callaghan, he hasn't got it. You're here tonight, Minister, no disrespect to you. You'll probably read out an answer. But the public need answers about taxpayers' money. Enormous amounts of it going into companies that have no track record, and have been, as I said before the courts, and the Department of Integration were made clearly aware of this, and to sign this for 277 applicants who were put into a village of 200 people is simply go about charity. That's how tests don't believe it will be there and unprecedented. It's shocking. Can I thank Deputies O'Hara and McGrath for raising the important matter tonight, and for allowing me on behalf of the Minister. As you said, Deputy McGrath, I'm taking it on behalf of the Minister to respond. Deputy O'Hara, the Department recently announced that 98 beds for families seeking international protection will be provided at the Merriman Hotel in Kinvara. The property was previously used to house people who were beneficiaries of the temporary protection directive due to the war in Ukraine, and was also used in international protection accommodation service, accommodation centre prior to 2022. The community engagement team has been sharing information, Deputy, with local representatives of the community groups since the 18th of March, as you said, including a detailed briefing note, meetings and personal contacts. My information, Deputy, is that the engagement has been extensive with the community over the past number of months, and we will now progress to providing refugees to families at this location. In terms of the people from Ukraine who remain at the property, they will stay at the Merriman and will be accommodated under the new arrangements. One of the queries raised during community engagement in Kinvara was the agreement to not contract or pass accommodation in a given town's only operating hotel. This was accepted by government and was agreed to on the basis of not removing an important current immediately from public use. The hotel has not been in public use since the COVID-19 pandemic and since 2022, and it has been providing accommodation under contract to the department. As such, it was not considered necessary to exclude it from the consideration for this most needed accommodation for families in need of shelter. Deputy McGrath Cahillock raised the issue of Dundrum House Hotel, which has seized the operation as a hotel since 2015. There is a golf course grounds and a hospitality business and site which have remained open to the community while part of the site operates as an accommodation centre. The former hotel has been providing refuge to a peak capacity of 270 people from Ukraine since 2022 and to over 50 international protection applicants since the summer of last year. A new contract has commenced at this property and the centre would provide accommodation to up to 277 people in families seeking international protection. This figure includes beneficiaries of temporary protection due to the war in Ukraine who are already being accommodated and is not there for an increase in the overall capacity at this centre since 2022. The community engagement team has extensively engaged with the local community about this property since May of last year, including discussions of the potential accommodation of international protection applicants. On the 15th of April this year, the community engagement team sent a formal briefing note including the name of the accommodation, provider of the type and nature of accommodation to be provided and details about the services to be put in place. In terms of the provider themselves, the department can consider offers of accommodation from a tax-compliant company subject to compliance with statutory requirements and minimum standards. Offers of accommodation can be made by a property owner, leaseholder or other authority. As part of the department's appraisal process, they can confirm if an offer has come from someone with the appropriate authority. Department carries out due diligence and accommodation being contracted to ensure company's registration office and tax compliance. In line with EU trade agreements, a company or company director from another EU member state may operate such contracts within Ireland or works with an Irish business to do so. In terms of the contract in this case, the registered company named by the contract is a newly established entity that fully meets and meets with the department's requirements. The company is part of a wider commercial group that has experience in providing international protection accommodation. Where the department comes into contact, the onus is in on the accommodation provider to ensure all activities at the property are within legal limits. The department understands that the local authority is in contact with the property in relation to planning matters, and as this is a large site with various district areas and usage, that these matters are largely unrelated to the areas of the site. The department is also aware of the ongoing court proceedings in relation to this property, which is not appropriate for me to comment upon. And can I conclude on this, I can assure the deputy that any action be required as a result of any court proceedings or the local authority's engagement with the property, these will be addressed by the department officials as appropriate. Minister, I am extremely disappointed with the reply that you read out. I want the Taoiseach to minister for justice and minister for authority to halt this contract, to pause it and withdraw it. Because the companies involved, you get me gobbledygook there, it's not legal to pay tens of millions or 20 million euro to a company that hasn't filed taxes and that are not compliant with the Companies Act. Both Brogan Capital Ventures and Utanza are subsidiaries of Sealbox Investments Limited. And that's holding a company, last filed accounts at the Companies Registration Office in 2017. In the name of God, you have collective cabal responsibility in Cabin here, under the constitution, to serve the people of Ireland, not to be trading with these cabal outfits that have no trust. And the people are in since in Dundrum and Tipperary and all over the country. And you continue with this failed policy and make greedy people richer. And fat cats fatter in the name of looking after people. But they have no interest in looking after people. They have interest in one thing, their pockets and money. And it's disgusting to think this contract has been signed. I want it withdrawn and I want a full investigation. I refer this to PAC and I hope you support me with that as well. It's a shock and Vista is not acceptable. Thanks, Cahiruk. To Deputy O'Hara, in terms of the people from Ukraine, I repeat again, those people from Ukraine who remain in the property, they will stay at the Merriman and will be coming under a new arrangement. That's clearly black and white. And I take both Deputy McGrath and Deputy O'Hara's comments on board. And I bring them back to the Minister. The Department has been working with communities all over Ireland to source and provide accommodation for people applying for international protection. And emergency centres have been opened in all parts of the country. This is part of Irish and EU law and is also part of our humanitarian duty to provide shelter to people fleeing war and persecution in their home country. A repeat, humanitarian duty, Cahiruk. The State is currently accommodating over 33,000 people in over 320 international protection accommodation centres around the country. The Government is working towards a more sustainable international protection accommodation system and will include a moving away over time from over-reliance on commercial and emergency accommodation contracts. The Government are working to ensure that a greater proportion of accommodation is provided on State-owned land over time. The degree of control given to the State by the creation of core supply of State-owned accommodation about emergency and permanent options will increase as supply is delivered, re-establishing strategic direction over the accommodation type location and dispersal pattern. This work will be progressed as part of the development of a new migration and integration strategy and will shortly transfer from this Department to the Department of Justice, which move is to be completed in the coming days. Deputy McGrath made reference to May Day. But could I repeat again, Cahiruk, that there has been engagement. We have a humanitarian duty. The Government and the Department are working, as I said, in compliance with tax compliance, companies' registration office, EU trade agreements. And I would ask Members to be careful in the language they use, recognizing the sincere views for our language and how we express ourselves is very important. We are talking about people here, both people who are looking for refuge and people who are living in communities. And I would urge all Members to be sensitive to the needs of everybody.