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Minister named in Stubbs after €1.9m business venture flopped

JAMES REILLY faces the prospect of being financially blacklisted after details of a highly embarrassing €1.9m court judgment were made public.

The Health Minister will today see his name appear on the official debt defaulter's list for failing to pay the massive debt.

In a highly embarrassing development, Dr Reilly -- who was in Cyprus today -- is listed in the latest edition of the debt-magazine, Stubbs Gazette -- the same publication that named and shamed tax-cheat Mick Wallace.

It's emerged that Dr Reilly is one of five individuals behind a nursing home investment deal that flopped last year.

Pressure

The deputy Fine Gael leader is coming under intense pressure to address the embarrassing development.

He was in Cyprus today for a meeting of health ministers and has not yet spoken publicly on his inclusion in Stubbs Gazette.

However his spokesman today vowed that the debt would be paid in full

"Minister Reilly has kept the Taoiseach informed about details related to this matter and of his intention to divest himself of his interest in the property as soon as possible," he told the Herald.

The High Court ordered Dr Reilly and his business partners to cough up €1.9m in February in order to buy out a group of eight other investors.

Court judgments like this are secured by individuals and businesses which are chasing bad debts.

Dr Reilly and his business partners consented to the order -- which means that they accept that this other group of investors are out of pocket and owed the hefty sum.

But the inclusion of Dr Reilly, a senior Cabinet minister, on the debt defaulters list is a humiliating revelation.

It effectively means that Dr Reilly's credit rating has been damaged and that he faces the prospect of being financially blacklisted.

It's also emerged that one of the individuals behind the investment is disgraced ex-councillor Anne Devitt -- who resigned from Fine Gael after being tarnished by the Mahon Tribunal.

Ms Devitt told the Herald today: "You're going to get the same answer I give to everyone. It's a private matter and I won't be discussing it."

The investment, which was spurred by a lucrative tax-break, dates back to 2000 and centres around a 54-bed nursing home in Carrick-On-Suir, Co Tipperary.

It involves a syndicate of highly qualified professionals such as solicitors, architects and engineers.

Dr Reilly and his partners were ordered to pay the €1.9m after they reneged on a deal to buy the nursing home from the other investors in 2010.



Judgment

The minister himself owes 25pc of the investment itself.

Speaking to the Herald, a spokesman for Dr Reilly stated that the debt would be paid in full.

"The judgment of the court, namely that Dr Reilly and four co-investors buy out other investors in this property, is not disputed," he said.

"It was agreed in the court. Therefore it is clear that this judgment will be honoured. That's not at issue.

"The work now involves finding the precise methodology by which that will be done. But a way will be found to resolve the matter," he added.