Devey Healthcare Ltd, which owns the two homes . . . Delvin Lodge, Gormanstown, Co Meath and Castle Lodge, Castlebellingham, Co Louth . . . is being prosecuted by the HSE for alleged breaches between July and September last year.

Delvin Lodge is facing allegations that it failed to prevent toxic conditions and infestation at the facility; that it had no warm bedding for elderly patients; that it failed to keep records of patients' medical history at the time of admission; and that it did not have enough staff.

Among the allegations relating to Castle Lodge are that it failed to have the appropriate equipment for the administration of a 'peg' feeder . . . a device used to feed infirm patients through a tube directly to the stomach . . . requiring the use of a coat hanger; that it failed to record the use and disposal of vital medicines; and that it failed to prevent the risk of infestation and toxic conditions.

The court case coincides with the release of a report into conditions at the Leas Cross nursing home in Dublin, which found that abuse of the elderly was institutional at the home. It also criticised senior health services management.

This weekend, it has emerged that two of the most senior managers who were responsible for the care of elderly people at Leas Cross have left the HSE, but have been rehired as consultants. Their new work "involves inspections of nursing homes and carrying out investigations into complaints", according to the HSE. Consultancy rates for experienced advisers range between 700 and 1,400 per day.

Michael Walsh was the assistant CEO of the Northern Area Health Board and Jack Buckley was the Director of Public Health Nursing during the years when the report said the "institutional abuse" took place in Leas Cross. The report also detailed how HSE managers failed to respond to warnings about the neglect and abuse taking place.

Both men retired on full pensions prior to the publication of the Leas Cross report and set up Walsh Buckley and Associates in January 2006. When questioned as to his role with the HSE this weekend, Jack Buckley declined to answer. Michael Walsh was uncontactable.

Responding to queries, the HSE said: "With regard to your queries on a named individual, a retired employee of the former Northern Area Health Board (NAHB) was engaged by the HSE as an interim measure pending the establishment of a dedicated Nursing Home Inspection Team. This former employee has considerable experience as a Director of Nursing in the HSE.

The dedicated Inspection Team for Dublin North East is now established and this retired employee's temporary contract will cease when this team is fully operational, which will be by the end of November 2006."

As assistant CEO, Michael Walsh was strongly criticised in the Leas Cross report, which was compiled by Professor Des O'Neill.

A letter from the acting CEO of the HSE (Eastern Region) to Walsh in April 2005 sought clarification from Walsh as to the standards of care in Leas Cross. O'Neill states this "again should have been taken as a warning signal of the gravest import".

Michael Walsh hired O'Neill to carry out the desktop review of Leas Cross. In his response to O'Neill's report, Walsh says that "O'Neill has moved beyond the terms of reference to highlight his perception of system failure at health board level." He defends NAHB management whom he says "were satisfied that they had put a robust [inspection] system in place that could adequately deal with issues arising in the course of inspection".

Jack Buckley, the Director of Public Health Nursing in the Northern Area Health Board, had direct responsibility for the team inspecting private nursing homes. O'Neill's report is critical of the inspectorate for failing to act despite very serious concerns about Leas Cross raised by Buckley's own inspection team, by consultant psycho-geriatricians in St Ita's hospital, and by relatives of residents.

Calls to a helpline for elderly people have risen sharply since the publication of the Leas Cross report.

"The number of calls has increased and people are quite concerned, " said Mary Nally, founder of the Senior Helpline.

"We are getting calls in from residents and from people who have relatives in nursing homes who are concerned about their welfare."