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PB February/March 2024 February/March 2024 11
In order to obtain monies from the
Government to house refugees the DCEDIY
requires “proof of legal ownership or a copy of
the lease agreement in place”
Former Lough Allen Hotel: now refugee reception centre
A
hotel used as a reception centre
for Ukrainian refugees in County
Leitrim is at the centre of a legal
dispute following a claim that the
current operator is trespassing on
the property.
A local businessman, Niall McManus,
through his company Leitrim Courtesy Ltd.,
has received up to €500,000 per month from
the Department of Children, Equality,
Disability, Integration and Youth (DCEDIY)
since April 2022, when he opened the former
Lough Allen Hotel, in Drumshanbo, County
Leitrim, for up to 250 refugees.
However, legal proceedings have been
commenced by developer, Paddy White, of
Kilberry, County Meath, who developed the
hotel and apartment complex on lands he
purchased from the late father of Niall
McManus, who he claims can only access the
hotel by trespassing on his property.
Niall McManus was appointed to manage
the hotel by a tax partnership, which included
Mr White before it was placed into receivership
in 2019 over outstanding loans to the Cerberus
subsidiary, Promontoria (Arrow). The tax
partnership, which included a number of
prominent lawyers and Mr White, expired
some years earlier.
The Receiver, Tom O’Brien, of Mazars has
allowed McManus to continue to operate the
hotel, spa and leisure centre, while seeking a
buyer for the complex. Mazars was in
negotiations to fi nalise a contract to sell the
hotel and apartments in the summer of 2022
but did not complete the deal.
Instead it has received, on behalf of
Promontoria, a large portion of the €7.7
million in income provided by the Department
to Leitrim Courtesy Ltd between April 2022
and October 2023.
According to Niall McManus, he has
managed the hotel for several years although
business e ectively collapsed during the
Covid pandemic. His father. Don McManus,
sold the site, on which the 62-bedroom hotel
was built, and adjoining lands, to White for
€1.2 million in 2001.
“My father was a builder and owned the
land here before it was sold. We have always
had a right of way”, McManus told Village. He
said that monies he received from the
Department to house Ukrainian refugees were
split 70% - 30% in favour of Mazars. Mazars
had previously received 60% of the income
before the amount was raised, he said.
“Some of the monies have been used to
refurbish the apartments on the site”, he said.
The 24 apartments are now also used to house
refugees from the war in Ukraine.
The original directors of Leitrim Courtesy
Ltd were Niall McManus, who was also
company secretary, and his wife Anne Marie
McManus of Curaghill, Drumshanbo, County
Leitrim.
However, in October 2023, Niall McManus
resigned as secretary of the company and was
replaced by Anne Marie McManus. Both Mr
McManus and his wife, Anne Marie, are also
NEWS
Drumshambles
Benefi ciary of €500k per
month from Ukrainian
refugees is challenged
over right of way to
reception centre
By Frank Connolly
directors of Curnalee Investments Ltd which
was incorporated in October 2022.
Niall McManus, the remaining sole director
of Leitrim Courtesy Ltd, could not explain why
he resigned as company secretary of Leitrim
Courtesy Ltd late last year although, he said,
it was probably as a result “of legal and other
advice” he had received.
In order to obtain monies from the
Government to house refugees, the DCEDIY
requires “proof of legal ownership or a copy of
the lease agreement in place”.
Asked how he had agreed a contract with
the Department to obtain over €500,000 a
month from April 2022, when he was not the
legal owner of the property and whether he
had a lease to do so at the time he received
the fi rst payment, he said it was a matter that
was handled by Mazars. The Department has
also referred queries about the contract with
Leitrim Courtesy Ltd. to Mazars.
The legal action has been issued by
solicitor, Paul Nolan, acting for Mr White
against Leitrim Courtesy Ltd., Niall McManus,
Mazars and Promontoria.
In response to questions from Village
magazine, the DCEDIY confi rmed that it had a
contract with Leitrim Courtesy Ltd. to house
refugees in the Lough Allen hotel. It said it was
not aware of the resignation of Niall McManus
as secretary of the company. It also said that
it “was not in a position to comment on civil
proceedings”.
Mazars did not reply to questions put to it
regarding its involvement with Leitrim
Courtesy Ltd. including as to whether, and
when, it first provided legal assurances
(through a contract or lease arrangement) to
the DCEDIY on behalf of the company.
Nill McMnus
