The Director-General of the Health Service Executive (HSE) says the agency will consider legal action against the former Central Remedial Clinic (CRC) chief executive, Paul Kiely.
Tony O'Brien says the Director of Corporate Enforcement (DCE) may also be asked for advice in how to recover some of Mr. Kiely's pension funds.
€700,000 was taken from the accounts of the CRC fundraising charity to pay for Mr. Kiely's pension package.
Tony O'Brien says the HSE was examining all the options available to it.
It has also emerged today that Mr. Kiely was a member of the board of The Care Trust - the charity fundraising body whose funds were used to top up Mr. Kiely's pension when he stepped down from the clinic.
There has been outrage since it was revealed yesterday that almost €750,000 of charity funds was used as a pay-off and pension for the former Chief Executive.
Former CRC CEO Paul Kiely
The Board then agreed that the terms of the settlement would remain confidential and a legally binding agreement was put in place.
We have now learned that Mr. Kiely resigned from the board of The Care Trust on the same day that he stepped down from the CRC.
Newstalk's Political Editor Shane Coleman says a number of other people involved in the CRC stood down on the same day.
The HSE has taken over the running of the CRC and may call in the gardaí to investigate the financial transactions surrounding the payment.
Earlier, the Tánaiste described the latest revelations about the CRC as shocking. Eamon Gilmore says there is no place for this in post-recession Ireland.
Main image: HSE chief Tony O'Brien