Former finance minister Paschal Donohoe provided an extra €10 million in funding to the World Bank beyond what it had requested, Extra.ie can reveal.
Documents obtained by Extra.ie show that the World Bank recommended a contribution of €131.4 million from Ireland for the period from 2025 to 2028. However, Mr Donohoe opted to provide €141.4 million on April 24, 2025, despite officials in his own department recommending significantly less. This decision has raised ‘serious questions’, according to Sinn Féin.
Extra.ie reports that internal briefing documents from the Department of Foreign Affairs, dated September 13, 2024, reveal how officials were informally advised by the Department of Finance that Ireland’s pledge to the World Bank’s International Development Association (IDA) for the three-year period would likely be between €122 million and €129 million.
In a separate email chain, a DFA official noted: ‘They refer to this as the “mid to high scenario”. A “high scenario” would mean c.€148 m (a 40% increase) but they said this was very unlikely.’
The decision was delayed due to the general election in November 2024. On December 14, 2024, under then-Finance Minister Jack Chambers, a draft business case outlined five options, including maintaining the previous €105.9 million, providing the World Bank-recommended €131.4 million (a 24% increase), or the ‘high-level’ option of €141.4 million (a 33% increase).
Extra.ie highlights that the draft report described the €131.4 million option as ‘consistent with Ireland’s international development policy’ and ‘in line with the level recommended by the World Bank Group and in excess of the average increase in contributions by other countries.’ It noted that €141.4 million would be ‘well in excess of the average increase.’
The preferred option in the draft was €131.4 million.
Mr Donohoe became Finance Minister in January 2025. An updated business case in March 2025 presented both €131.4 million and €141.4 million as aligned with policy, though it acknowledged that €141.4 million would be ‘higher than the level envisaged for Ireland by the World Bank Group.’
A Department of Finance official circulated the memo, stating it had not yet been approved by the minister but was not expected to change.
The proposal went to Cabinet in the name of then-Foreign Affairs Minister Simon Harris, and the €141.4 million commitment was announced on April 24, 2025. Mr Donohoe stated: ‘In light of the current international landscape, geopolitical tensions, and decisions by others in respect of commitments to Official Development Assistance, it is now more important than ever that we step up and make a contribution where we can.’
Seven months later, on November 18, 2025, Mr Donohoe resigned as Finance Minister and Fine Gael TD for Dublin Central to take up a position as Managing Director and Chief Knowledge Officer at the World Bank in Washington DC.
Sinn Féin’s deputy leader and finance spokesman Pearse Doherty told Extra.ie that the revelations were ‘very serious’ and raised ‘serious questions’.
‘We need to know why millions more was given to the World Bank than they even requested and why the original recommendation from the Department of Finance was changed by the new minister. It won’t be lost on people that this happened just before the process of preparing the budget that left workers and families worse off,’ he said.
He added: ‘The fact that Paschal Donohoe was appointed to a senior position in the World Bank shortly afterwards increases the need for complete transparency from Government on how this decision was made.’
A World Bank spokesman said: ‘Paschal Donohoe was selected by the World Bank Group on the basis of his extensive experience spanning both the public and private sectors.’
Mr Donohoe did not reply to a request for comment.
A spokesman for the Department of Finance stated that the funding for the 21st replenishment of the World Bank’s IDA21 ‘was negotiated and developed over the course of 12 months that concluded in a final pledging meeting in December of 2024.’ The recommended course reflected the business case process and was endorsed by Cabinet.
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