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Money improperly paid to a Sinn Féin senator and her husband at the end of March was only returned on Tuesday this week, the Irish Examiner can reveal.
Derry Senator Elisha McCallion and two others have resigned from the party after failing to return money they were paid by mistake.
It emerged this week that three party offices were improperly paid under the Northern Ireland Executive’s small business grant scheme.
Under the scheme, launched in March, a £ 10,000 payment was automatically sent to any business that received relief from small business fees.
It is understood that there have been around 450 errors out of the 27,000 grants paid. 70 of them have had their money recovered while the other errors are processed.
The fee reduction scheme had been open to small political offices, but the MP and MLA constituency offices are not eligible for the Small Business Grant Scheme.
It appears that in the last financial year Ms. McCallion’s old constituency office would still have been on the Land and Property Services list and received the grant in error.
The grants were first paid in March, Sinn Féin’s investigation into the incident began Monday night, sources confirmed.
Various Sinn Féin sources have confirmed that McCallion was told “in no uncertain terms that she had to go” and was informed that she was “finished” at the party, despite McDonald’s statement that Foyle’s former MP had resigned.
President Mary Lou McDonald issued a statement Thursday that said: “On Monday and Tuesday, Sinn Féin leadership established that three-party offices incorrectly received deposits of £ 10,000 under the small business grant scheme established by the Department of Economy in March 2020.
“Last night I accepted the resignations of the three people responsible for these accounts and for not returning the money: Senator Elisha McCallion, Upper Bann President Comhairle Ceantair and a party official in West Tyrone.
“Failure to immediately return grants wrongly paid to Sinn Féin’s accounts is an extremely serious situation. As party leader, I wish to acknowledge and apologize for these failures.”
“The payments were not requested and were received automatically.
“Payments were posted to constituency accounts in West Tyrone and Lurgan, and to Elisha McCallion’s account for her former Westminster office.
“In all cases, the grant money has been returned in full, with refunds made on Monday and Tuesday of this week.
“This money should have been returned immediately as no political office qualified for this grant.
“The party has established in each case where the responsibility for the administration of the accounts in question and the reimbursement of these monies falls.
“Sinn Féin Ard Chomhairle met last night and censured everyone involved.
“Last night I accepted the resignation of Senator Elisha McCallion. She accepts full responsibility for not returning the grant immediately.
“The party also accepted the resignation of the party official in West Tyrone who had responsibility for managing the account and did not promptly return the grant money despite being asked by Maolíosa McHugh MLA.
“The Cathaoirleach (President) of the Upper Bann Comhairle Ceantair (Constituency Organization) has also resigned in recognition of their failure to repay the grant payment in a timely manner.
“The Small Business Grant Scheme was established to support struggling businesses in times of extraordinary difficulty.
“The lack of immediate repayment of grants wrongly paid into Sinn Féin’s accounts is an extremely serious situation.
“As the leader of the party, I wish to acknowledge and apologize for these failures.”
Ms. McCallion also released a statement saying: “Earlier this year, a small business grant was deposited into a joint account of which I am a firm with my husband.
“I did not request or request this money, nor did I receive any correspondence from the department regarding it.
“I fully agree as a named signature on the account that I should have taken additional steps to verify this, before I was informed on Tuesday.
“The money was refunded in full on Tuesday.
“I unreservedly apologize for the poor judgment I displayed in relation to this and for that, last night I spoke with the party leader and submitted my resignation as a member of Seanad Éireann with immediate effect.
McHugh said on the BBC yesterday that he had contacted party officials to make arrangements to return the money “a long time ago”, adding that he received confirmation earlier this week that it had been refunded.
Sinn Féin staff say they are shocked by the development, and a source told the Irish Examiner: “I don’t know what they were thinking.”
Sources from Ms. McCallion’s Comhairle Ceantair in the city of Derry say they were not aware of their departure until contacted by the Irish Examiner and that they had not been contacted by party headquarters.
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