“Paper Companies” Benefit from Hundreds of Thousands of Euros Spent on Accommodation and Food
Dublin: A lucrative business under the guise of emergency housing for refugees in Ireland has come to light, with several companies operating illegally without proper documentation or tax payments while diverting government funds under various pretenses. TD Catherine Murphy raised concerns in the Dáil regarding this fraudulent activity, receiving only assurances from the Minister of Integration that matters are under investigation.
Notably, a network of companies has profited from providing accommodation for Ukrainian refugees and International Protection (IP) applicants, amassing millions of euros. The influx of refugees has led to a significant increase in government expenditure on accommodation, with over €130 million spent in 2019 rising to €236 million in 2022, according to figures from the Department of Justice.
The arrival of Ukrainian refugees has further escalated costs, with an additional €99 million allocated for their accommodation. Despite the government’s assertion that most refugees are from Ukraine, many applicants are from religiously motivated countries.
While more than 60 companies were contracted for IP accommodation in 2019, the Department of Integration entered into contracts with over 800 companies in the first three quarters of 2023 alone. Some of these companies, such as Cape Wrath Hotels Unlimited and Brimwood Limited, have earned over €100 million in six months.
Concerns have been raised about the legality and accountability of these companies, many of which lack prior experience or legal documentation. New companies have emerged rapidly, often without legal papers or background in the field. Some, like Liberator Limited, have received contracts despite lacking planning permission or financial transparency.
Illegal companies like Rival have received government funds without proper contracts or planning permission, prompting allegations of fraud. Eagle Heights B&B, another such company, received €1.2 million for housing IP applicants without legal operation or financial accountability.
TD Catherine Murphy has called for an investigation into how the government enters contracts with illegal companies operating without tax payments, emphasising the need for a mechanism to combat such fraudulent practices.
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