An accountant’s office has been searched by gardaí investigating allegations of money laundering at the Dublin-headquartered charity Liberty Recycling.
The search came after two BMW X5 luxury SUVs, valued at €250,000, and designer goods worth €40,000 were seized by gardaí.
The Irish Times understands the criminal investigation into the alleged misappropriation of funds held by the charity is expected to involve arrests during its next phase.
Detectives from the Garda National Economic Crime Bureau are reviewing records of funds raised by Liberty Recycling, and outgoing money, in a bid to determine if funds were diverted away from the charity for personal use. Sources said a very small number of people were under suspicion.
Gardaí went to the accountant’s office to secure financial records in a bid to get a picture of sections of the charity’s activities the money is alleged to have been misappropriated from. The charity is chaired by Sinn Féin TD Aengus Ó Snodaigh, though there is no suggestion he is under investigation. He is not linked in any way to the assets seized.
The two BMW X5 SUVs, along with Louis Vuitton bags, Rolex watches and jewellery with a total estimated value of €40,000, were seized during searches in Dublin, the east and southeast on Tuesday and Wednesday.
The assets were confiscated on suspicion their purchase was funded, or part-funded, with money that should have been spent on the charity’s core activities.
If money was taken in that way, and converted into assets that were privately owned, that may be classified as money laundering. The economic crime bureau’s money laundering investigation unit is carrying out the investigation, which also involves the Charities Regulator.
Liberty Recycling has declined to respond to questions put to it by The Irish Times, including whether any of its personnel have been suspended pending the outcome of the investigation.
It was established more than 20 years ago as a spin-off from the Merchants Quay drug treatment organisation, initially as a community employment scheme. It has since grown considerably and employs 60 people full-time, collecting textiles at a vast network of clothes banks nationwide.
It sorts approximately eight 40ft containers of clothing every week at its depot in Bluebell, Dublin 12, offering training to people recovering from drug addiction. Its expenditure grew to €4 million in 2024, up from €2.5 million in 2022. It has received almost €2 million from the State, to fund its community employment scheme, since 2020.
Most of the textiles, and items such as shoes and handbags, donated to Liberty Recycling are sold to traders in Africa and Asia while some is sold via its network of nine shops across the country. Its operations are continuing, despite the Garda and Charities Regulator investigation.
The regulator, which appears to have taken its concerns to the Garda, prompting the investigation, has confirmed its involvement but stopped short of issuing comment.
However, the Garda confirmed the investigation was centred on “a Dublin-based charitable organisation”. It also confirmed the seizure of the vehicles and luxury goods and that the money laundering unit was carrying out the inquiry.
While no reference was made to an accountant’s office being searched during the operation on Tuesday and Wednesday, sources have confirmed this.
The offices of accountants and lawyers can be searched, and records and other items taken away from examination, during criminal investigations. However, this is done as part of the investigation into suspects’ financial background rather than the financial or legal professionals being under investigation.
Sinn Féin confirmed it was aware of the investigation and “fully supports” it. “Deputy Ó Snodaigh has engaged with the office of the Charities Regulator. He has not been contacted by gardaí, but if required, he will make himself available to assist with their inquiries,” it added in a statement.