Garda investigation halts operations at Liberty Recycling after asset seizure
More than 100 staff are furloughed and thousands of tons of textiles remain unprocessed in a Dublin depot as authorities probe international money flows.
By Jenna Mitchell ·
Operations at Liberty Recycling have stopped completely following a criminal investigation by the Garda National Economic Crime Bureau. The charity’s bank accounts are frozen, and more than 100 employees across the organization and two linked entities have been temporarily laid off. This halt leaves tonnes of donated clothing stranded in the company’s depot in Bluebell, Dublin 12.
The investigation centers on the movement of large sums of money through the charity’s accounts. Gardaí are reviewing international transfers to determine if the funds were legitimate trading proceeds or unrelated to the organization's core activities. The money laundering unit is specifically examining contacts with unidentified parties in Africa. Authorities have confirmed they are looking into whether a criminal element, possibly of African or Irish origin, infiltrated the group.
The Charities Regulator applied to the High Court this week for a provisional liquidator to be appointed. The regulator stated that some conduct within the charity appeared unlawful. It noted that a substantial international transfer of funds was not commensurate with the level of activity occurring in the charity. The regulator also flagged concern that the conduct may have benefited an organization with unlawful membership.
During Garda searches last week, officers seized specific assets from the charity. These items included two BMW X5 vehicles, designer bags, and Rolex watches valued at €40,000. The charity has generated revenues exceeding €4 million in some years. The Department of Social Protection has provided close to €500,000 in funding for its community employment scheme during those same periods.
Liberty Recycling was established in the 1990s as a community employment scheme for drug users associated with the Merchants Quay project. The two organizations are no longer linked. The charity has grown to include more than 400 clothes banks, nine stores nationwide, and a central depot. Its business model involves collecting unwanted textiles and selling them to traders in Africa and Asia to raise funds.
The suspension of work means the network of more than 400 clothes banks cannot be emptied. Many of these locations are currently full. The laid-off staff include many individuals recovering from drug abuse who held places on the community employment scheme. These workers were responsible for sorting the donated textiles in the Bluebell depot.
The next legal step is for the High Court to consider the Charities Regulator’s application for a provisional liquidator. The Garda investigation into the money laundering allegations continues. The charity’s assets remain frozen pending the outcome of these proceedings.
