Businessman Resigns Roles Amidst Company Accounting Delays
Michael Carey has stepped down from his positions at Enterprise Ireland (EI) and the Housing Agency. This follows concerns regarding late filings from his company, East Coast Bakehouse, prompting his decision to prevent any embarrassment for involved government officials.
Departure Details
Michael Carey has resigned from his posts as chairman of both Enterprise Ireland and the Housing Agency. This action comes in the wake of reports concerning the late filing of accounts by East Coast Bakehouse, the biscuit manufacturer where he holds a major stake and serves as executive chairman.
Carey stated his decision aimed to avoid any potential awkwardness for the involved ministers, James Browne and Peter Burke. He attributed the delay in filings to administrative issues and a shift in auditors.
“This has occurred due to management administrative errors. The delay has been exacerbated by an unanticipated need for a decision by our board to change our auditors,” Carey said in a statement.
He further clarified that there were no financial issues within the company. Audited accounts are anticipated to be filed by early July. The company recently named EY, a Big Four accounting firm, as its auditor.
“In order to avoid embarrassment to the ministers and any distraction from the crucially important jobs undertaken by these two agencies, I will step aside from these roles with immediate effect.”
—Michael Carey
Founded in 2016, East Coast Bakehouse employs 100 people at its Drogheda, Co Louth facility. The company recently secured €5 million in equity during a successful fundraising round.
Following the fundraising and a recent management restructure, Carey plans to return full-time to the business as its chief executive. He acknowledged that the late filings might be a distraction for the agencies.
He acknowledged accountability, adding, “I accept personal responsibility for the failure of the business to comply with this corporate governance requirement and the heightened requirement to fully comply, as chairman of a number of state boards.”
Reaction and Next Steps
Peter Burke expressed his gratitude for Carey’s contributions over the last two years. Jim Woulfe, EI’s director, will serve as interim chair. Jenny Melia was recently appointed as the new chief executive of EI, assuming her role in July. A new chairman will be sought.
Kevin Sherry, Enterprise Ireland’s interim CEO, thanked Carey for his dedication, saying, “He brought the voice of the client and the insights of an entrepreneur to the table ensuring that clients were at the heart of every conversation.”
Carey highlighted that his roles were unpaid and without expense claims. He was appointed chairman of The Housing Agency in 2018 and reappointed in 2023. His term was slated to conclude in 2028. He was appointed chairman of Enterprise Ireland in 2023, also with a term ending in 2028. Previously, he was chairman at Bord Bia from 2011 to 2017.
A 2022 study by the Central Statistics Office found that the average age of company directors in Ireland is 53 years old.