Enda Kenny withdraws claims

that bank guarantee

documents were shredded
The Taoiseach first made the claims in the summer of 2012.
Dec 16th 2014

ENDA KENNY HAS formally withdrawn claims that

documents related to the bank guarantee were disappeared
or shredded in the Department of the Taoiseach.
Speaking in the Dil this evening, Kenny acknowledged
there had been confirmation from the secretary general of
his department to Fianna Fil that documentation related to
the crisis does exist.
I accept that and if Ive caused any offence about that then I
certainly withdraw it, Kenny told TDs, later repeating I
withdraw that, I withdraw that, I withdraw that.
Previously, Kenny had repeatedly stated on the Dil record
that there is a paucity of documentation relating to the night
of the guarantee, suggesting in June 2012 that documents
may have been either shredded or has been disposed of or
dispatched of.
Fianna Fil leader Michel Martin had previously described
this as a partisan slur on Brian Cowen, the former
taoiseach.
He said that Kennys secretary general Martin Fraser, whose
responsibility it is to maintain documentation, had
confirmed that officials are fully in compliance with their
legal responsibilities when it comes to securing government
papers.

Enda Kenny and Micheal Martin discuss the missing bank

guarantee files, 17/07/12
Jul 17, 2012
Enda Kenny and Micheal Martin discuss the missing files relating to the night
of the controversial banking guarantee in the Dil, 17/07/12
https://www.youtube.com/watch?v=HeAbXiUqoiU
Sean Fitzpatricks and Other Bankers the Night of
The Bail Out All Were destroyed By Enda Kenny and
Michael Fail, With The Help of CEO Accountants
Freedom of Information requests have uncovered that there
are at least 146 different records related to the guarantee in
the Taoiseachs department, a schedule of which
has previously been published by this website.
As previously disclosed by this website, of the 146 different
documents only 35 have been fully or partially released
documents with most withheld under section 19 of the
Freedom of Information Act concerning the confidentiality
of government records.
Documents released include press releases already in the
public domain, fax cover sheets, and correspondence with
Oireachtas officials.
While an urgent letter from the then president of
European Central Bank Jean-Claude Trichet to then
Taoiseach Brian Cowen is withheld, an acknowledgement of
receipt of the letter was released.
Other descriptions of withheld documents include minutes
of Government meeting, a memorandum for government,
a draft guarantee bill and notes concerning discussions on
30 September 2008 the date the Fianna Fil-led
government made the decision to guarantee the entire Irish
banking system.
Kennys withdrawal of his remarks comes ahead of the first
public hearings of the Banking Inquiry which will get under
way in Leinster House tomorrow morning.
http://www.thejournal.ie/enda-kenny-withdraws-bank-
documents-shredded-1838489-Dec2014/

Kenny, Martin argue over missing bank

guarantee files
Fianna Fil says the Taoiseach is throwing out conspiracies like a man standing at a
bar at a pub.

Jul 17th 2012,

ENDA KENNY and Michel Martin traded angry exchanges in the Dil
today in a dispute about whether the Department of the Taoiseach kept
records of the meetings and discussions leading up to the bank
guarantee in 2008.

During Taoiseachs Questions today, Martin asked Kenny to elaborate

on remarks made in the Dil last month when he suggested that the
Department of the Taoiseachs files on the guarantee had been either
shredded or has been disposed of or dispatched of.

Today Kenny said his remarks were intended to illustrate the

remarkably small volume of documentation which remains on file at
the Department about the events on the night of the guarantee, and
said he had not meant to suggest that the files had actually been
shredded.

Michel Martin a member of the cabinet who made the decision to

guarantee the assets and liabilities of six Irish banks in September
2008 was not impressed with the response, describing it as
unacceptable.

Stop trying to walk away from your own words, Martin advised,
saying the Taoiseach was throwing out conspiracies like a man
standing at a bar at a pub.
I dont know why you deliberately articulated the view that documents
were shredded. You decided to invent a wild allegation I think you
were making a cynical political attack. Its unworthy of you and Id ask
you if you accept that that is the case.

Kenny was equally dismissive of his opponent, admitting: Im amused

at you, honest to God, before going to on to say he found it quite
incredible that there was not one solitary slip of evidence about any
discussions that officials held with banks before the guarantee was
introduced.

There is no file in the Department of the Taoiseach, a defiant

Taoiseach insisted. There is no file on the discussions or the meetings
that took place, and the rationale applied to that.

Up to and until the incorporeal meeting at that hour of the morning, all
of the evidence prior to that, there is no file in the Department of the
Taoiseach.

If there is, its certainly not in a place where we could find it. There is
nowhere else.

http://www.thejournal.ie/video-kenny-martin-missing-bank-
guarantee-files-524280-Jul2012/

FF says Taoiseach must clarify

suggestion bank guarantee file
was shredded
Enda Kenny said today there was no file in the Department of Taoiseach
related to the discussions surrounding the bank guarantee of
September 2008, suggesting it may have been shredded.
Jun 12th 2012
FIANNA FIL HAS called on Taoiseach Enda Kenny to
clarify comments made in the Dil today where he stated
that there were no files on the bank guarantee in his
department and suggested that they may have been
shredded.
During Leaders Questions, Kenny took issue with questions
from Fianna Fil leader Michel Martin on banking debt by
returning to the issue of the bank guarantee introduced by
the Fianna Fil-led government on 30 September 2008.
He said: In respect of the bank guarantee which you
completed at 4am in the morning nobody knows what you
said. There is no file in Department of Taoiseach on this.
Its either shredded or disposed of, dispatched of. In other
words, the government has no evidence of discussions that
took place, of what you said, he added, referring to Martin
who was then Minister for Foreign Affairs.
The comments have prompted a response from the Fianna
Fil finance spokesperson Michael McGrath who said this
evening that the Taoiseach should clarify the matter by
producing evidence that the files may have been shredded.
Otherwise he should withdraw his remarks, McGrath said.
In a statement, the Cork TD said: The Taoiseach needs to
clarify whether he has any evidence that files on the bank
guarantee have been shredded, and if so, whether he has
referred the matter to the Garda.
If he has no such evidence, then the comments should be
withdrawn. Surely the civil servants working for the
Taoiseach could clarify for him the existence of such a file?
It ill behoves the Taoiseach to cast aspersions in this way on
persons that could include serving and former civil servants,
his predecessor as Taoiseach and former government
ministers one of whom is deceased, he added referring
the late finance minister Brian Lenihan.
The issue of a lack of documentation related to the ill-fated
decision to issue a blanket guarantee of the banks is well
documented with the report into the banking crisis by the
current governor of the Central Bank, Patrick Honohan,
noting the problem.
A detailed review of the ensuing discussions is hampered by
the absence of an extensive written record of what
transpired, he wrotes in the report published in May 2010.
Writing on businesspost.ie, the Sunday Business Post
political editor Pat Leahy reports that the coalition
government has been unable to find any files on the bank
guarantee.
In March of last year, current finance minister Michael
Noonan said that the banking guarantee of September 2008
will go down in history as the blackest day in Ireland since
the Civil War broke out.
http://www.thejournal.ie/shredded-bank-guarantee-enda-
kenny-fianna-fail-484682-Jun2012/

The Irish Banking Crisis Regulatory and Financial Stability

Policy 2003-2008 A Report to the Minister for Finance by
the Governor of the Central Bank
http://www.bankinginquiry.gov.ie/The%20Irish%20Banking%20Crisis
%20Regulatory%20and%20Financial%20Stability%20Policy
%202003-2008.pdf
Contempt for Dil ireann':
Government still plans to sell
AIB shares despite vote against
it
The Government yesterday forgot to vote against a motion delaying the
sale.
May 19th 2017,
OPPOSITION TDS HAVE hit out at Finance Minister
Michael Noonan as he still plans to go ahead with the selling
off of AIB shares, despite the Dil yesterday passing a vote to
delay the move.
The motion to prevent the sale of 25% of AIB was proposed
by Labour yesterday. As campaigns for the Fine Gael
leadership got underway, it seems the government forgot all
about it.
The result of this was the Labour motion to delay the sale
passing.
However, in a statement yesterday, the Finance Department
yesterday said it would not be recognising the vote. As it was
on a Private Members Motion, it was not legally binding
the Department said.
In a statement last night, Labour leader Brendan Howlin
said Noonans decision showed a worrying contempt for
Dil ireann.

If the Government wants to override a decision of

parliament, then they should table a new motion, and seek
majority support, said Howlin.
Their disregard for the views of parliament amounts to the
final nail in the coffin of this do-nothing Dil.
Speaking this morning on RTs Morning Ireland, Howlin
said the move really underscores the complete impotence of
the current Dil.
His statements were echoed by Social Democrat TD
Catherine Murphy.
Instead of respecting the democratic process, Minister
Noonan is showing contempt for the Dil, she said.
He is trying to justify running roughshod over our
parliamentary democracy by saying that the Programme for
Government allows the sale of AIB shares.
Labour said it wanted assurances sought to ensure that the
money would be used to pay for new homes, schools and
hospitals.
In an article over the weekend, Howlin said that the sale
would reduce our debt-GDP ratio by just 1%.
He said that the estimated 3 billion that the government
would get from the sale of the shares must be kept in AIB
until such time as we know we can use it.

http://www.thejournal.ie/aib-noonan-vote-3397740-
May2017/

Dil votes to keep AIB shares

because the government forgot
to vote
Remarkable way for it to happen, Labour leader Brendan Howlin said.
May 18th 2017,
DIL IREANN HAS voted to postpone the sale of its stake
in AIB this afternoon after government TDs forgot to vote.
The motion to prevent the sale of 25% of AIB was proposed
by Labour, and gave rise to a polarising debate about what to
do with the governments 99% shares.
But, as campaigns for the Fine Gael leadership get underway
today, it seems the government forgot all about it.
Remarkable way for it to happen Labour leader Brendan
Howlin said on Twitter.
with government TDs forgetting to take their own side,
but the Labour motion delaying the sale of AIB shares has
passed.
Dil passes motion not to sell AIB until fiscal rules are
renegotiated. Government forgets to call vote [as it was]
distracted by the leadership race, said Sinn Fins finance
spokesperson Pearse Doherty.
But a spokesman for the Department of Finance
told Fora.ie the sale was still expected to go ahead when
market conditions were suitable.

The government maintains the option of ignoring the vote

and going ahead with the sale, as planned.
Finance minister Michael Noonan, who announced his
retirement today amid a spate of Fine Gael announcements,
said previously that the government should have the
opportunity to sell some of the States shareholding in AIB
during 2017 or indeed early 2018.
Such a sale is provided for in the Programme for a
Partnership Government and the ultimate decision will be
subject to a range of factors including prevailing market
conditions but the overriding consideration will be whether
any transaction is likely to maximise the return for the
State.
But Labour wanted assurances sought to ensure that the
money would be used to pay for new homes, schools and
hospitals.
In an article over the weekend, Howlin said that the sale
would reduce our debt-GDP ratio by just 1%.
He said that the estimated 3 billion that the government
would get from the sale of the shares must be kept in AIB
until such time as we know we can use it.
What is remarkable is that having lost the election on their
plans for the economy, Fine Gael are now presiding over a
single party government in the economic area.
Ministers Noonan and Donohoe may be pleasant men, but
at their core they are old school Fine Gael.
Updated at 4.15pm to include a statement from a
Department spokesperson.

http://www.thejournal.ie/dail-
vote-aib-3396286-May2017/
Brendan Howlin has called for
the sale of AIB to be put on
hold
Howlin wants assurances that the money will be spent on building new
homes, schools and hospitals.
Mar 12th 2017,
BRENDAN HOWLIN HAS urged the Government to stop its
partial sell-off of AIB until it can guarantee that the cash will
be invested in Irish infrastructure.
The Labour leader said that assurances must be sought that
the money will be used to pay for new homes, schools and
hospitals.
Michael Noonan recently informed the Dil that the sale of
any shareholding in any of the banks would not count as
general government revenue. Therefore, there is not
generally any increased capacity to spend as a result of the
sale of shares without affecting the general government
balance.
Speaking today, Brendan Howlin said he has been making
the case for changes to the stability and growth pact in order
to allow for greater investment in public infrastructure.

He said: Unfortunately, our Government has so far utterly

failed to push this idea at a European level. The result is that
none of the proceeds from any sale of AIB can be invested
into building houses, hospitals or schools.
Urgent need
The policy of selling off our holding in AIB was based on an
urgent need to reduce our debt levels. But that situation has
changed dramatically net debt had already fallen to 66% of
GDP, prior to the CSO publication of updated National
Accounts last week, which will see this fall further.
Minister Noonan has been updating the Oireachtas on the
sale of 25% stake in AIB. He said that the government
should have the opportunity to sell some of the States
shareholding in AIB during 2017 or indeed early 2018.
Such a sale is provided for in the Programme for a
Partnership Government and the ultimate decision will be
subject to a range of factors including prevailing market
conditions but the overriding consideration will be whether
any transaction is likely to maximise the return for the
State.
http://www.thejournal.ie/howl
in-aib-called-off-3283663-
Mar2017/

Enda Kenny praises

'extraordinary' Noonan as he
announces plan to step down
The Finance Minister says he will not be seeking re-election to the Dil.
May 18th 2017
Update 9.45pm
MICHAEL NOONAN HAS announced that he does not want
to carry on as Finance Minister when a successor to Enda
Kenny is appointed.

The minister also added that he will retire at the next

general election. In a statement released this afternoon,
Noonan said:
Following the Taoiseachs announcement yesterday, I want
to state that I do not wish to be considered for Cabinet by his
successor, whoever that may be.
Noonan said that he will continue to carry out his duties as
Minister for Finance until a successor is appointed but that
he will not be seeking re-election to the Dil at the next
general election.
He said: It has been a privilege to represent the people of
Limerick since I was first elected in 1981 and I look forward
to continuing to do so until an election is called.
I have been honoured to serve as Minister for Finance since
March 2011 and have introduced six annual budgets and one
supplementary budget.
I believe now is a good time for a new Finance Minister to
take up office. Ireland is the fastest growing economy in
Europe, the budget is almost balanced and we are on the
cusp of full employment.
Kenny paid tribute to Noonan this evening, saying his
contribution to the restoration of the Irish economy has
been extraordinary.

His taxation measure proved to be fair, balanced and

among the most progressive in Europe. He brought stability
and confidence to Irish proposals at ECOFIN (the EUs
Economic and Financial Affairs Council). This assisted
greatly with my own engagement with EU leaders at Council
level.
I respect his decision completely and the people of Limerick
and the Mid-West understand fully the transformative
influence of his years as Minister for Finance.
Above all else, Michael remains a close personal friend of
mine.
A formidable politician and parliamentarian
Earlier, Minister for Housing Simon Coveney, who has
thrown his hat into the Fine Gael leadership competition,
said he wanted to express his thanks to Noonan his
extraordinary contribution to public life.

I think Michael Noonan has played probably the most

significant role in rebuilding our economy from the very,
very broken state that Michael Noonan found it in when he
became Minister for Finance.
He has been an extraordinary leader within government, he
has been a voice of calm, of intelligent commentary, a really
steady hand through a very difficult period.
When there was tension between Fine Gael and the Labour
party in particular in the last government Michael Noonan
normally was the one who found a middle ground to move
forward on.
I consider him a friend of mine, hes someone I have
learned a huge amount about politics and about life from
and I hope to work with him in the future, he added.
Fianna Fils finance spokesperson Michael McGrath said
Noonan had been a formidable politician and
parliamentarian.
As someone who has marked Minister Michael Noonan
across the floor of the Dil for the past six years, I would like
to acknowledge the significant role he has played in public
life, and of course, in managing the Irish economy.
Of course, there have been many occasions where Minister
Noonan and I disagreed on policy, but throughout every one
of those disagreements, I have no doubt that he was
motivated by a desire to always act in the national interest.
http://www.thejournal.ie/noo
nan-finance-minister-
3395870-May2017/
Harris admits government
can't express confidence in
State's corporate watchdog
Sinn Fein said the governments handling of white-collar crime was like
a Monty Python sketch.
May 28, 17
MINISTER FOR HEALTH Simon Harris has admitted that
neither he nor the government can express confidence in the
States corporate watchdog.
A new anti-corruption agency could be considered by the
Dil, he said, and the government should have backed an
anti-corruption bill by the Social Democrats.
Speaking on RTs The Week In Politics, the minister was
asked about the governments role in the collapse of the trial
of former Anglo Irish Bank chair Sean FitzPatrick.
The court case collapsed last week after it emerged that the
States corporate watchdog, the Office for the Director of
Corporate Enforcement (ODCE), contaminated evidence by
coaching key witnesses and shredding evidence.
Harris acknowledged the role of the state in the collapsed
trial, but said that as far as he knew, the ODCE had told the
government that they had adequate resources.
The question is how does the ODCE interact with the courts,
and with the Director of Public Prosecutions. I cannot, and
the government cannot, express confidence in this office.

He admitted that his government should have backed the

Social Democrats anti-corruption bill, but that that alone
would not have stopped the collapsing of the Sean
FitzPatrick trial.
Sinn Fin finance spokesperson Pearse Doherty said in the
Dil that the handling of the investigation into Sean
FitzPatrick was like a Monty Python sketch.
Risn Shortall, joint-leader of the Social Democrats called
for the establishment of a new wide-ranging law
enforcement agency to tackle white collar crime.
Minister for Jobs, Enterprise and Innovation Mary Mitchell-
OConnor has ordered the ODCE to issue a report into their
failings, and said that nothing is off the table in relation to
the repercussions they could face.
RTs This Week programme reports today that the ODCE
had notified the garda commissioner that they needed three
garda to aid their investigation, but that none were
available.
There are 13,000 garda the notion that you couldnt find
three garda to give to the ODCE is incredible, Labour
leader Brendan Howlin told the programme.
He said that there are serious doubts now about whether the
ODCE is fit for purpose.
http://www.thejournal.ie/simon-harris-odce-3413018-May2017/

Report ordered into what went

wrong in the Sean FitzPatrick
investigation
We owe it to those who suffered to never, ever allow this to happen
again, jobs minister Mary Mitchell OConnor said.
May 28, 17
THE GOVERNMENT HAS demanded that the States
corporate watchdog submit a report outlining exactly what
went wrong in their investigation as part of Sean
FitzPatricks collapsed trial.
Yesterday, a judge acquitted the former chair of Anglo Irish
Bank of all charges after it emerged that evidence handled
by the Office of the Director for Corporate Enforcement
(ODCE) was contaminated.
The ODCE fully accepted the judges criticisms that two key
witnesses were coached and that evidence that could have
been crucial to the defence had been destroyed.
Today, the Minister for Jobs, Enterprise and Innovation
Mary Mitchell-OConnor said that the ODCEs shortcomings
were very serious and unacceptable.
She said that in light of this, shes ordered a report from Ian
Drennan, the current Director of the ODCE, to shed some
light on what went wrong.
She said that she didnt accept defences by some politicians
that problems were caused because of funding and
resources.

That has to be our starting point: the start of understanding

what exactly occurred; we must know exactly what
happened and exactly what failed, we must be open to any
and all new measures and solutions to fix this.
If the report leads me to conclude we need an entirely new
model, then so be it.
We owe it to those who suffered during the crash to never,
ever allow something of this nature happen again.
There has been serious backlash since the collapse of one of
the most high profile court cases in the Irish State, with
questions raised over how white-collar crime is handled in
Ireland.
Sinn Fins Maurice Quinlivan says that the financial cost of
this will be significant.
Leaving aside the price of a nine year investigation, it has
been estimated to have cost 3 million for this 127 day failed
trial alone. As per usual, the taxpayer is left picking up the
tab.
The loss to the citizens of Ireland is not just financial. This
situation also costs an unmeasurable loss in public
confidence in politics and the legal system.
The state can be bankrupted and banks can be collapsed,
and no one is held to account. However if you dont pay your
TV license, expect the full rigour of the law.
Earlier in the Dil today, former Tnaiste Joan Burton said
that the government needed to set up a Criminal Assets
Bureau in order to take white-collar crime seriously.
Mitchell-OConnor, however said that the report would be
her number one priority and will be taken most seriously.
http://www.thejournal.ie/mary-mitchell-o-connor-odce-3408971-May2017/

State watchdog 'fully accepts' it

coached witnesses in
FitzPatrick trial
But the state corporate watchdog says that its practices have since
changed.
May 28, 17
THE STATES CORPORATE watchdog has accepted heavy
criticism from the judge in the Sean FitzPatrick trial that
evidence was contaminated, but said that the organisations
practices had changed since that evidence was collected.
Earlier today, judge John Aylmer ended the longest-running
criminal trial in the history of the State when he acquitted
former Anglo Irish Bank chair Sean FitzPatrick of all
charges.
His ruling came after lengthy submissions from the defence
arguing that the case should not go before the jury because
of flaws in the investigation process and in the prosecution
case.
The Office of the Director of Corporate Enforcement (ODCE)
was accused of coaching two audit partners from Ernst &
Young witnesses central to the prosecution and as a
result, their evidence was contaminated.
But the ODCE has also defended its current processes, with
a statement released this evening.
The ODCE fully accepts that criticism. However, the
practices that were so heavily criticised by the trial judge
date as far back as to early 2009.
Over the intervening years, the ODCE has
undergone substantial organisational change and as a result,
some eight years later, it is a very different organisation to
what it was at that time.
It also outlined how its practices had changed over the past
decade.

Source: ODCE
Shredded documents
In January it came to light that a
lead ODCE investigator into allegations
against FitzPatrick shredded documents related to the case
in what he called a calamitous error.
The state watchdog sought to clarify this issue as well:
[The incident] occurred at a time during which the staff
member concerned was under enormous stress and
against a backdrop of significant mental health issues,
certain of which pre-dated the incident and
which culminated in the staff member concerned being
hospitalised for almost two months in the
immediate aftermath of those events.
The ODCE was tasked with investigating allegations that
FitzPatrick failed to disclose multi-million euro loans to
auditors, in what it called the most high profile case it has
been involved with to date.
http://www.thejournal.ie/sean-fitzpatrick-trial-evidence-contaminated-3405087-
May2017/

Bruton knew
FitzPatrick files were
shredded
Sean ODriscoll
May 26 2017, 12:01am,
The Times

Richard Bruton was told that an investigator destroyed documents in the

case two days after it happened
Richard Bruton was aware that the lead investigator
in the Sen FitzPatrick case shredded trial
documents two days after it happened but has said
that he kept silent to avoid prejudicing the case.
Mr Bruton, the former jobs and enterprise minister,
said that Ian Drennan, the director of corporate
enforcement, told him on May 6, 2015, that the lead
investigating solicitor in the former Anglo Irish Bank
chiefs case had shredded the documents. The
minister said that he and Mr Drennan believed that
the destruction could come to public and media
attention very shortly and that they needed to
discuss the implications.
Mr Bruton, who is now the education minister,
confirmed yesterday that he met with Mr Drennan in
May 2015. The meeting was not new.
Of course HE knew.
They ALL knew
What a waste of YOUR money as a taxpayer funding this circus and these clowns!
The State takes care of the State.
Your vote 'empowers' their actions.
"Mr Bruton, the former jobs and enterprise minister, said that Ian Drennan, the
director of corporate enforcement, told him on May 6, 2015, that the lead
investigating solicitor in the former Anglo Irish Bank chiefs case had shredded
the documents".
The State takes care of the State.
The people have no power.
All power is given to the State through election
The Party elected is unimportant.
Until this changes, nothing changes.
"And the truth is: the State, in the Celtic Tiger years, was in awe of the bankers
and their rich clients. It ensured that their activities were lightly policed. After the
economic crash, when the State was called on to prosecute people such as Mr
FitzPatrick, it did so reluctantly.
And the tools the State employed were, to say the least, ill-suited to the job".
Are you beginning to understand?

https://www.thetimes.co.uk/article/bruton-knew-fitzpatrick-
files-were-shredded-80zpmhvwm
A major prosecution was
left in the hands of an
inexperienced solicitor

1
Kevin OConnell, the ODCE legal adviser who led the investigation.

When Sean FitzPatrick walked free of the charges against him, wild allegations
flew.

Such conspiracy theories offer simple explanations, easily understood. A kind

of psychological comfort food.

The truth is more complex. And the truth is: the State, in the Celtic Tiger
years, was in awe of the bankers and their rich clients. It ensured that their
activities were lightly policed. After the economic crash, when the State was
called on to prosecute people such as Mr FitzPatrick, it did so reluctantly.
And the tools the State employed were, to say the least, ill-suited to the job.

We did not in 2009, and do not now, have the structures and the personnel in
place to ensure that people of wealth obey the laws.

And when we suspect they have broken the laws, we did not then, and we do
not now, have the structures and personnel to make them accountable.

The law is for little people.

There are many in the establishment who would gladly have sacrificed their
old mate Seanie rather than have the reality of the legal system so crudely laid
bare. We should not, by conjuring up fanciful conspiracy theories, help them
disguise this reality.

The crimes alleged against Mr FitzPatrick occurred between 2002 and 2007.
That's where we can look to understand last week's events.

It was a period in which self-described "entrepreneurs" were treated as secular

saints, engaged in the sacred rituals of the market. Only begrudgers
questioned the way in which virtually the entire economy was left at the mercy
of people who specialised in borrowing and lending money.

No one was louder in glorifying the grab-it culture than our Seanie. "We had
ideas, and we had balls," he said in a 2005 speech. "We worked the scene and
maximised the moment, the world watched in astonishment."

Advertisement 00:22

The result? "We have done very well by Ireland."

From the end of the 1990s, it was clear the freebooting Celtic Tiger economy
urgently needed regulation. And some outfit to police it. The shameless
hustling was giving us a questionable reputation. We needed to be able to
point to regulatory bodies.

Many businesses paid little attention to the rules of company law. Only 13pc of
companies even bothered to file returns on time. Honest business people were
handicapped in competing with those who ignored the law.

Already, the world's chancers were flowing to Ireland. There were 40,000
"non-resident" companies. It was widely understood that Ireland had become
a kind of motel for sleazy international business people. One of those motels
where you rent rooms by the hour.

Stick up a brass plate and slip our lawyers and accountants a few bucks and
they'll see your needs are satisfied.

We were the "Wild West" of the financial business, as The New York Times
phrased it.
In 2001, we set up the Office of the Director of Corporate Enforcement
(ODCE).

In 2003, we had the Companies (Audit and Accounting) Bill. This would
merely require company directors to sign a few forms attesting that there was
nothing hooky going on in their outfits.

But even this went too far for some. The bill was watered down.

Business figures kept up a steady drumbeat of complaint about how regulation

stifled them (they still do).

In 2004, the Government published a white paper titled 'Regulating better'. It

discussed ways of watering down regulation.

In 2005, EU Commissioner Charlie McCreevy demanded that "the cost of

regulation must be reduced". There was boasting of our "light-touch"
regulation.

In 2007, the ODCE had just 36 staff members. Nevertheless, it disqualified

1,600 directors, took hundreds to court and referred 48m to Revenue, for
taxing.

It worked hard and it was cost efficient. It spent just 2.9m of its 4.5m
budget.

While the ODCE took its job seriously, regulators were largely treated as a
nuisance. They were considered by some to be at best a fig leaf, to give the
banks respectability. They were not expected to meddle in the affairs of the big
players in the financial markets, and were not equipped to do so.

The director of the ODCE had for two years been requesting another 20 staff.
Cases were dropped due to lack of personnel. The delay was mentioned in the
Dail in February 2007. Taoiseach Bertie Ahern responded that the ODCE
would have to "wait a few more years if the staff are required".

A year later, the financial business collapsed. Eventually, Mr FitzPatrick faced

criminal accusations. The job of prosecuting him fell to the ODCE - a fledgling,
understaffed body just seven years old.

The ODCE had done excellent work policing the fine print of company law - it
had no experience at all of handling major cases in the criminal courts.

We now know that the person running the case, Kevin O'Connell, had never
handled a criminal prosecution; he believed himself to be lined up as a
scapegoat; he panicked and destroyed documents after mismanaging them.

Magically, the great institutions of criminal law - the office of the DPP, the
Attorney General's office and the police - melted away.
It never occurred to anyone to check - not just to ask - but to check that the
ODCE was equipped to do the job.

Bear in mind the staffing of the ODCE was known to be a problem and had
been a matter of Dail controversy.

In other jurisdictions, prosecutors would have been queuing up for a chance to

make their names in such a high-profile case, involving matters central to the
observance of crucial laws.

Here, it was left to a solicitor with no experience of criminal work.

If Mr FitzPatrick had been suspected of shoplifting, we'd have had the

mechanism to prosecute; if it was suspected he didn't sign off the dole for a
couple of weeks after he got a nixer, Fine Gael politicians would fight one
another to be first to appoint a prosecutor.

We still don't have, or want, the mechanism necessary to prosecute the elite if
they're suspected of serious crime.

In 2010, the ODCE had 45 staff, with 10 gardai. In 2016 the figures were 35
and five.

http://www.independent.ie/business/irish/a-major-prosecution-was-
left-in-the-hands-of-an-inexperienced-solicitor-35763195.html
Amateur probe that made
it look like OCDE tried to
fit up Sean FitzPatrick
The trial of Sean FitzPatrick has exposed
failings in the State agency that
investigates white-collar crime, writes
Maeve Sheehan
Sean FitzPatrick Picture:
Shelley Horan has a reputation as an expert in her field of
white-collar crime. She is an adjunct professor at Trinity
College, designed a course run by the King's Inn for
lawyers, gardai and professionals, and is respected by her
peers.
When the suicide charity Console was engulfed in financial
scandal caused by its founder, the charities regulator
included her in a list of new trustees he proposed
appointing to its board.
Yet when the Office of the Director of Corporate
Enforcement (ODCE), which was poised to investigate
Console, saw her name on the list of nominees, it
discreetly inferred its disapproval.
For reasons best known to the ODCE, the head of
enforcement Kevin Prendergast concluded a letter to
Console's solicitors with the pointed observation: "It is
noted that the Charities Regulatory Authority has
appointed a number of new trustees to the board of the
company.
"In that context, you might note for information purposes
that Ms Shelley Horan BL is currently acting for Mr Sean
FitzPatrick in DPP v Sean FitzPatrick, a prosecution in
which this office is the associated investigative authority."
According to informed sources, the email caused much
head-scratching. Did the ODCE believe that Ms Horan
should not be appointed to Console's board because she
also acted for Sean FitzPatrick? Was a barrister just doing
her job to be tarnished by her association with her client?
"The inference and innuendo is absolutely clear," said an
informed source who saw the email. "You can take it they
were told to get stuffed."
Console ended up being liquidated, so the need for a new
board never arose.

5
ACQUITTED: Sean FitzPatrick. Picture: Collins
But the ODCE's email took on fresh relevance last week
after Judge John Aylmer's findings of the agency's bias in
relation to the former chairman of Anglo Irish Bank,
coaching of witnesses and contamination of statements,
caused Mr FitzPatrick's trial to collapse in spectacular
fashion.
Mr FitzPatrick, the 68-year-old former chairman of Anglo
Irish Bank, walked away from the Criminal Courts of
Justice last Wednesday without a backward glance, leaving
in his wake the smouldering remnants of the State's once-
lauded anti-white-collar crime agency.
The 3m legal costs of the trial - including bankrupt Mr
FitzPatrick's legal aid bill - will add to the 30bn that
taxpayers have already paid to bail out the bank he once
chaired and which is largely blamed for bringing the
country to its knees.

While Mr FitzPatrick basks in the glorious sunshine a free

man, the chief executive and senior figures in the ODCE
are fighting for the agency's survival amid growing calls
that it is no longer fit for purpose.
Flaws exposed
The burden of the ODCE's failure has mostly fallen on the
shoulders of one man: the soft-spoken and deeply
repentant solicitor Kevin O'Connell, who suffered a
nervous breakdown as the flaws in an investigation he was
never equipped to lead were exposed.
He has claimed that he was not the only one to blame for
the fundamental and ultimately unlawful errors that
caused the case to collapse. The DPP, gardai and, most
notably, his retired former boss at the ODCE Paul Appleby
may yet have to account for their knowledge of the
catastrophic criminal investigation before an Oireachtas
committee.
Sean FitzPatrick leaves Dublin Circuit Criminal Court with his
daughter Sarah after he was acquitted on all charges
Mr O'Connell was four-and-a -half years qualified when he
joined the ODCE in 2002 - the year after it was set up. He
had two years under his belt in private practice, two at the
chief State solicitor's office and six months on secondment
to the Criminal Assets Bureau.
According to one investigator, he was "sheltered" from the
daily scrum of the civil or criminal courts. His peers
regarded him as smart, something of a "legal brain" and
"great at looking up casework".
"He didn't have the practical experience to lead a criminal
investigation," said one source.
Anglo collapse
The collapse of Anglo Irish Bank in 2009 sparked a
plethora of criminal investigations that tied up a good
chunk of the Garda fraud squad and stretched the
resources of the ODCE.
Although he couldn't quite recall how, Mr O'Connell ended
up being assigned the investigation into the 87m in
directors' loans that Mr FitzPatrick had allegedly borrowed
from Anglo Irish Bank but allegedly concealed from the
bank's auditors.
Mr O'Connell was on his own. The Garda fraud detectives
who were seconded to the ODCE were working on another
criminal investigation spawned by Anglo's efforts to keep
itself afloat.
By his own admission, Mr O'Connell had no real training
for the job, although it took a while for him to realise he
was in over his head.

Kieran Kelly, an audit partner with EY, pictured leaving Dublin

Circuit Criminal Court. Photo: Collins Courts
The investigation opened in February and, according to
Judge Aylmer's ruling last week, the ODCE set out to build
a case against Mr FitzPatrick rather than investigate his
guilt or innocence.
He was eventually charged with 27 offences under the
Companies Act, mostly for misleading auditors about the
87m in directors' loans he took out for himself and family
members over a five-year period. The charge was that his
loans were hidden from auditor Ernst & Young, now EY,
with the help of short-term loans on to Anglo's books at
the end of the financial year.
Mr O'Connell's two key witnesses were Anglo's auditors, -
Kieran Kelly, who audited its accounts between 2002 and
2004, and Vincent Bergin, who audited Anglo from 2005
to 2008. Both are senior figures in the Irish branch of one
of the world's top firms.
Investigators say it's unusual for witnesses to alleged
crimes to "lawyer up" when making statements to
investigators, precisely because they are witnesses, not
suspects.
When Mr O'Connell went looking for statements from Mr
Bergin and Mr Kelly, he found himself instead dealing
with Liam Kennedy, head of commercial dispute
resolution with A&L Goodbody, who has acted for EY
across many of the Anglo-related investigations.
The fatal flaw in his investigation was to accept Mr
Kennedy's presence. He later told the court he was used to
meeting witnesses in the company of their lawyers. At his
first meeting with Mr Bergin, Mr O'Connell did most of the
talking with Mr Kennedy, rather than the witness he was
there to interview.
Mr O'Connell was still waiting for a statement from Mr
Bergin six months later.
When his boss Mr Appleby, wrote to EY to complain about
the delay, Mr Kennedy wrote to Mr O'Connell to complain:
"Now basically do you want us to continue co-operating
because EY wants to assist your enquiries. I just wanted to
mark your cards. The letter was inappropriate."
When Mr Bergin's witness statement was emailed to Mr
O'Connell soon afterwards, it was circulated between
ODCE, EY and A&L Goodbody, gathering a "hokey cokey"
of suggested chops, insertions and alterations along the
way.
The court heard that on one occasion Mr Kennedy made
changes to Mr Bergin's draft witness statement when Mr
Bergin wasn't present. Later on, Mr Appleby was said to
have written sections of both statements.
It seems mind-boggling now that senior solicitors and the
Director of Corporate Enforcement seemed unaware that
changing a witness statement in a criminal investigation to
suit the prosecution's case was entirely unlawful.
There was nothing secret about what Mr O'Connell was
doing.
In court, it was suggested that the Office of the Director of
Public Prosecutions had some awareness of how Mr
O'Connell was taking statements. Mr O'Connell's methods
were "touched on" in a preliminary report he sent to the
DPP in 2010, and in a second "crucial" email he sent to the
DPP in 2012.
Mr O'Connell later said his great regret was that no one
raised any "amber flags" about his work, that no one
kicked him under the table at meetings where the witness
statements were discussed.
But one ODCE official had misgivings about Mr
O'Connell's interactive approach to taking witness
statements - and at an early stage.
In May 2010, Adrian Brennan, also a legal adviser in the
ODCE, raised concerns that Mr O'Connell's approach
might encourage witnesses to "shoehorn the facts" to fit.
Sean Fitzpatrick with his daughter Sarah, after he was acquitted of
all charges. Photo: Damien Eagers
It is not clear either if Mr Brennan's concerns were
followed up. If they had been, Mr O'Connell later
conceded, "things might have evolved in a very different
manner".
Taoiseach Enda Kenny said last week that offers of more
resources to the ODCE to speed up its investigations were
declined.
According to Mr O'Connell, the official position of the
director, Mr Appleby, was that they were not needed. Mr
O'Connell appears to have wanted Garda assistance. He
wrote to Mr Appleby in July 2011, pointing out that gardai
on secondment to the ODCE were concentrating on
another Anglo probe and none had been allocated to his.
Legal argument
Mr FiztPatrick was charged in connection with the
concealment of loans in 2012. His trial opened in 2015. On
the very first day, Mr FitzPatrick's legal team raised
concerns about Mr O'Connell's investigation and seven
weeks of legal argument followed.
Mr O'Connell was in the witness box for six days, four of
them being cross-examined about how he conducted his
investigation and whether key witnesses were coached.
It was his third experience of being in a witness box and
Mr O'Connell found the ordeal "difficult".
He finished up on Friday, May 1, 2015. He returned to his
office feeling "elation". His elation dissipated when he
noticed a blue tray. In it he found documents that should
have been disclosed to Mr FitzPatrick's defence team,
mostly notes he had jotted down of conversations with EY
or their solicitors. Yet there they were, sitting in his blue
tray.
Mr O'Connell faced up to the discovery. He went to his
boss, Ian Drennan, who in turned phoned the DPP's office.
Henry Matthews, the solicitor in the DPP's office, told him
it was "most unfortunate". Mr O'Connell would have to go
back into the witness box after the weekend to account for
the undisclosed documents.
Mr O'Connell was terrified at the prospect. He returned to
his office, checked through the tray again and, to his
dismay, discovered more documents that were relevant to
the case. He "panicked on top of panic" and decided there
and then to destroy them.
Half an hour later, CCTV footage captured Mr O'Connell
walking down a corridor towards the shredding room
carrying the tray of paperwork. He stopped to chat to his
colleague, Garda Gary Callinan, unaware that a camera
was recording his free hand turning over the documents in
the tray, as though to conceal them.
Over the weekend, Mr O'Connell took calls from Mr
Drennan and the DPP's office. Another round in the
witness box loomed. On Monday, he emailed Mr Drennan
to tell him what he had done. Mr O'Connell booked
himself in for psychiatric treatment while the ODCE's legal
team explained the extraordinary development to Judge
Mary Ellen Ring.
When the second attempt to try Mr FitzPatrick collapsed
last Tuesday, Judge Aylmer cited the "extraordinary"
shredding of documents. The most fundamental error,
however, was the unlawful manner in which statements
were taken: the ODCE had failed to look for evidence of
innocence as well as guilt, the coaching of witness,
statements were contaminated, all of which denied Mr
FitzPatrick the impartial, balanced investigation to which
he was entitled.
Enormous stress
The authorities have agreed that Mr O'Connell should not
face disciplinary or criminal action for shredding evidence.
In a statement, the ODCE said it occurred against a
backdrop of "enormous stress" and "significant mental
health issues" for which he was hospitalised for two
months. But if an investigation into Mr O'Connell were to
proceed, where would the trail lead? To the Office of the
Director of Public Prosecutions, which insisted on
continuing the case despite evidence given in court that
key witnesses were being coached?
To Paul Appleby and others in the ODCE whom, the court
heard, pitched in with their own additions and deletions to
witness statements in a process that two judges found to
be unlawful?
And what of gardai who have said they had no
involvement in taking the witness statements?
Since Mr Drennan succeeded Mr Appleby as director in
2012, the gardai now take the lead on all criminal
investigations. But the office is still facing calls for
disbandment.
As for the solicitors, the Law Society says it cannot
investigate against practitioners without a complaint from
the client. As for the auditors, EY is due to go before a
disciplinary hearing of the accountancy body CARB over
its work once all of the Anglo trials end. It is being sued for
50m by IBRC, which subsumed Anglo.
During the trial, Mr FitzPatrick's defence team argued
that, given the circumstances, it was in EY's interest to
work with the ODCE to secure a prosecution of Anglo's
former chairman.
Distressed mortgage holders and those struggling to keep
vulture funds at bay are no doubt among a struggling
cohort who have good reason to be aghast at Mr
FitzPatrick's acquittal because of the failures of the State
agency that promised justice for white-collar crime.
That it was Mr FitzPatrick who helped expose those
failings is cold comfort indeed.
http://www.independent.ie/irish-news/courts/amateur-probe-that-
made-it-look-like-ocde-tried-to-fit-up-sean-fitzpatrick-
35763206.html

Appleby and the public

service must be held
accountable
There are many lessons to be learnt from
the FitzPatrick trial, but public service
accountability must come first, writes
Sarah Carey
Paul Appleby. Photo: Damien Eagers
Thecentremusthold!That'swhattheysayandthat'swhatIpreachwhenthethreatofmereanarchyis
letlooseupontheworld.Andsureenough,despiteallthathasbeenthrownatus,therehavebeen
sufficientnumbersofIrishvoterswithaFrenchsenseofresponsibilitytomaintainjustabout
mainstreampoliticalparties.

ThedisastersofTrumpandBrexithaveprovedthatpopulistswhowinhavebeenexposedasthe
charlatansmanyofusknewthemtobe,andthatanarchismisnosolutiontoanything.Butafteraweek
likelastweek,Iwonder,almostinamazement,howthemiddlegroundhasbeenmaintained.

TheincredulitythatSeanFitzPatrickwasguiltyofnothingwasonlyoneofseveraltalkingpointsinthe
news.ThediscoveryofincompetenceintheOfficeoftheDirectorofCorporateEnforcement,justas
negotiationsonpublicsectorpayopened,inflictedasevereblowontheideathattheestablishmentis
capableofdelivering,notmerelyeconomicrecovery,butthepromisethattheinsanityofthebustcould
notberepeated.

http://www.independent.ie/opinion/applebyandthepublicservicemustbeheld
accountable35763249.html
The State, gardai,
lawyers, auditors - all
have serious questions to
answer
When the State breaks the rule of law, we
enter into a realm of anarchy, writes Group
Business Editor Dearbhail McDonald
Dearbhail McDonald
May 28 2017
The rule of law, where the Government, as well as individuals and private
entities are accountable under the law, matters - it's the essence of the social
contract.

When it is the State, its officials and agents as well as lawyers, by definition
officers of the court, who break the rule of law, the damage is incalculable.

When it ceases to apply, we enter - as we did last Tuesday when former Anglo
chairman Sean FitzPatrick was acquitted on all charges by direction of trial
judge John Aylmer - into a realm of anarchy.

http://www.independent.ie/opinion/columnists/the-state-gardai-lawyers-
auditors-all-have-serious-questions-to-answer-35763257.html

Expert testimony cost

300K - but most of
Mazar men's evidence
was 'inadmissable'

1
The former headquarters of Anglo Irish Bank at St Stephen's
Green in Dublin
The ODCE spent more than 300,000 on expert testimony for the Sean
FitzPatrick trial, the securing of which breached EU laws on public
procurement.

Most of the evidence from two experts who work in London accountancy firm
Mazars could not go before the jury.

The evidence of one Mazars witness, Nigel Grummit, was deemed

inadmissible by trial judge John Aylmer as being "irrelevant, unhelpful,
unnecessary and of no probative value and being entirely prejudicial".

The evidence of the other Mazars expert, forensic accountant David Dearman,
was deemed admissible but only after his report was revised to incorporate
"significant concessions" made by the prosecution following a series of
challenges by Mr FitzPatrick's defence team.

The manner in which the ODCE secured the cross-border tender was the
subject of prolonged legal argument in the absence of the jury during the
mammoth trial. In August 2014, Kevin O'Connell wrote to an official at the
Department of Jobs, Enterprise and Innovation, stating that "in conducting
the procurement process we have sought to comply fully with all relevant
requirements".

Under cross-examination, however, by Mr FitzPatrick's barrister Shelley

Horan, Mr O'Connell agreed that statement was not accurate. "We were
seeking to indicate the extent to which we were operating within the broad
spirit of public procurement law, if not in the letter of it," Mr O'Connell told
Judge Aylmer. "In terms of... compliance with procurement obligations, the
process was bespoke... and so that it does not tick all the boxes from a
procurement perspective."

In a ruling issued last March, 10 days before the case against Mr FitzPatrick
collapsed, Judge Aylmer ruled Mr Grummit's evidence inadmissible. He ruled
the admission of Mr Dearman's evidence was far more consistent with the
public interest in the administration of criminal justice than excluding it in
order to "penalise the technical breaches" of the prescribed EU procurement
process.

"There were significant confidentiality issues and the ODCE, as procurer, had
little or no experience in how properly to overcome these issues and remain
fully compliant with EU procurement law," said the judge. In a statement, the
Department of Jobs said it understood that experts were engaged by the
ODCE following a competitive tendering process.

"The terms of reference were drawn up in consultation with the Office of the
Director of Public Prosecutions and Counsel," said a spokesperson.

http://www.independent.ie/irish-news/expert-
testimony-cost-300k-but-most-of-mazar-mens-
evidence-was-inadmissable-35763193.html

Investigator in Sean
FitzPatrick trial shredded
documents in 'calamitous
error'
I made a dreadful mistake which thereafter I acknowledged and
admitted, he told the court.
Jan 30th 2017

Updated 6pm
A LEAD INVESTIGATOR into allegations of crimes by
former Anglo Irish Bank chairman Sean FitzPatrick has
admitted shredding documents that he should not have
shredded.
FitzPatrick (68) is accused of failing to disclose multi-
million euro loans to auditors. The prosecution alleges that
the amount of the loans was artificially reduced for a
period of two weeks around the banks financial end of year
statement by short term loans from other sources, including
Irish Nationwide Building Society.
On day 71 of the trial at Dublin Circuit Criminal Court,
Bernard Condon SC, defending, continued his cross-
examination of Kevin OConnell, a legal advisor with the
Office of Director of Corporate Enforcement (ODCE) who
dealt with witnesses from EY, Anglos auditors from 2002 to
2008.
OConnell was answering questions about the ODCEs
process of drafting witness statements in consultation with
witnesses and their lawyers. He agreed that during the first
trial of FitzPatrick in April 2015 a bright light was shone
on this process and it was revealed to be sub-optimal.
The witness said since then the ODCE changed their practice
so that witnesses in criminal investigations were now only
interviewed by garda.
He said that this process of the ODCE engaging with
witnesses and lawyers was alleviated by the extensive
documentary recording, giving an unusually detailed
chronicle as to what was going on.
Calamitous error
Condon put it to the witness that this only went as far as
where documents still existed and not where documents
may have been shredded.
OConnell then told the jury that he had in fact shredded
what he said were a tiny proportion of documents at a later
stage.
At a later stage I made a calamitous error. I shredded a
small number of documents which I ought not to have
shredded, he said. He agreed that they were shredded just
after he had been cross-examined by Condon in April 2015.
It was a time of enormous pressure. I made a dreadful
mistake which thereafter I acknowledged and admitted, the
witness said. He said the documents related to notes from
conversations he had with A&L Goodbody, the lawyers for
EY.
Clanger
FitzPatricks defending barrister also put it to the witness
that his client was in danger of being jailed because of a
clanger of a mistake made by the banks auditors, EY.
Counsel told the court that EY had asked Anglo directors to
sign the wrong types of documents during some of the
relevant years.
The letters of representation ask directors to state their
loans from a company during the year. This was a standard
request from auditors to directors of ordinary firms but bank
directors were only obliged to declare the amount of loans
from their bank at financial year end.
Condon said: It looked like they (EY) used the wrong
document. It looks like they made a mistake. Surely it
crossed your mind, these people made a clanger?.
He asked the witness did it not occur to him that this
mistake necessitated a forensic examination of the
auditing process.

Youre trying to prosecute one man, put him in prison, on

foot of what these people produced, counsel said. OConnell
said the the ODCE did not see itself in the role of
investigating the auditors and said if it was the wrong
document, it still demanded a truthful answer.
The witness denied that the ODCE were driven by a desire
to produce a head or that in this case it was to be
FitzPatrick.
Condon said: You got carried away with yourself because
you had in front of you the opportunity to get Sean
FitzPatrick, in the context where your office was highly
sensitive to the political sphere and public outrage and to
who Mr FitzPatrick was.
The witness vehemently denied that he had gotten carried
away and said he was simply seeking to advance the case
and that it was being treated as good work by his boss, Paul
Appleby, the Director of Corporate Enforcement
Condon suggested that Mr Appleby also had a very
significant desire to get Mr FitzPatrick.
I cant speak for Mr Appleby but I dont believe he was
motivated by improper motives either, OConnell said.
The jury heard that in October 2010, six months after the
first meeting between ODCE and auditors EY regarding
statements from EY witnesses, Mr Appleby wrote to EY to
express concern over delays in furnishing the statements.
Liam Kennedy, a partner with A&L Goodbody, contacted
OConnell and said the letter was unfair.
In a note of the conversation shown to the jury Kennedy said
to the ODCE investigator: Now basically do you want us to
continue co-operating because EY wants to assist your
enquiries.
I just wanted to mark your cards. The letter was
inappropriate. Kennedy went on to say that EY were
working with the investigators on voluntary basis and
sending a letter of that sort was a major disincentive for
them to continue doing so.
A summary note from OConnell at the time stated: He said
that he was not threatening, but wanted to make it clear that
they had been bending over backwards at their end.
Lovers tiff
Condon described the row as a lovers tiff and told the
witness you all got back together afterwards. He said there
was a three way relationship between the ODCE, EY and
their lawyers, A&L Goodbody and that it was improper.
He said the ODCE were dealing with people who had their
own agendas and the ODCE were fearful of asking them
hard questions. OConnell said that he felt that they did ask
all the questions they felt were appropriate.
This was a compromised relationship, Condon submitted,
saying that EY and their lawyers were dictating to the ODCE.
OConnell denied this and said the ODCE were dependent
on the voluntary co-operation of people who were not
obliged to assist.
Condon put it OConnell that the auditors, Kieran Kelly and
Vincent Bergin, had given sworn testimony that they would
have given statements in the absence of their lawyers, if
anyone from the investigation had asked them.
OConnell said that in 2010 that was not his belief and that
he found it hard to believe it now.
FitzPatrick of Whitshed Road, Greystones, Co Wicklow has
pleaded not guilty to 27 offences under the 1990 Companies
Act. These include 22 charges of making a misleading, false
or deceptive statement to auditors and five charges of
furnishing false information in the years 2002 to 2007.
The trial continues before Judge John Aylmer and a jury.
Comments have been closed as the case is ongoing.
http://www.thejournal.ie/seanfitzpatrickshredding3213081Jan2017/

Please read once, twice or twenty times until you get

it!!
The State takes care of the State.
The people have no power.
All power is given to the State through election
The Party elected is unimportant.
Until this changes, nothing changes.
"And the truth is: the State, in the Celtic Tiger
years, was in awe of the bankers and their rich
clients. It ensured that their activities were
lightly policed. After the economic crash, when
the State was called on to prosecute people
such as Mr FitzPatrick, it did so reluctantly.
And the tools the State employed were, to say
the least, ill-suited to the job".
Are you beginning to understand?
So Bruton was told of the shredding of vital evidence in May
2015 and kept his trap shut for fear of prejudicing of the
trial.
If he knew that the case was scuppered, then why allow the
farce to continue for another two years?
He admits they were worried about how it would look once
the case ended because he was worried as to how the
public would perceive this revelation.

If Bruton knew, who else knew and stayed quiet?

So why did they allow it to continue?

Garda Commissioner Noirin O'Sullivan has overseen a

legal spend of more than 525,000 in just two years - as
she continues to hire some of the most high-powered
lawyers in the country to fight ongoing allegations against
the force.
The force has been consistently on the back foot, following
a range of allegations made by a number of
whistleblowers.
Now financial records obtained by the Sunday
Independent reveal a huge taxpayer-funded legal bill has
been notched up by An Garda Siochana in an effort to face
down its detractors.
As part of the O'Higgins Commission, established to
investigate allegations of misconduct in the Cavan-
Monaghan district, Commissioner O'Sullivan employed
seven lawyers over a two-year period to mount a robust
defence. The total bill came to 237,555. The probe was
set up on foot of complaints by Sergeant Maurice McCabe.
It found serious flaws and failures in criminal
investigations, and highlighted how a number of victims
were "not well-served" by local gardai.
What a terrible waste of tax payers money, this
woman has to go, i.e. Be fired and very soon. She
not fit for purpose.
The ODCE intervened when Sean FitzPatrick's lawyer was
due to be appointed to the board of Console; our story
today:

Sean FitzPatrick: New tapes shed more light on

Anglo collapse
| BusinessPost.ie
New documents and recordings obtained by The Sunday
Business Post give fresh insights into FitzPatrick
businesspost.ie

New documents and recordings obtained

by The Sunday Business Post give fresh
insights into FitzPatrick

By Jack Horgan-Jones, Francesca Comyn, Tom Lyons, Ian Guider

May 28, 2017

The fallout from the collapse of the Sean FitzPatrick

trial is escalating this weekend, with the publication
of previously unheard recordings of the former
Anglo Irish Bank boss, and new revelations about a
McCarthyism campaign by the Office of the
Director of Corporate Enforcement (ODCE) against
a barrister who represented the banker.

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Jury in Sean FitzPatrick trial

returns to court today to hear
evidence
Sean FitzPatrick has pleaded not guilty to 27 offences under the 1990
Companies Act.
Oct 26th 2016,

Sean FitzPatrick, the former chairman and one-time chief executive of

Anglo Irish Bank.
Image: PA Archive/PA Images
THE JURY IN the trial of former Anglo Irish Bank chairman
Sean FitzPatrick on charges of misleading the banks
auditors about millions of euro in loans will return today.
The jurors are expected to begin to hear evidence after being
sent away for almost two weeks.
Last month a specially enlarged jury panel of 15 had been
sworn at Dublin Circuit Criminal Court for the trial, which is
expected to run for three months.
At the time, Judge John Aylmer asked the jury if there is any
reason why you cannot act on this jury and reminded the
panel that they must approach the case with absolute
impartiality.
The jurors confirmed they were all willing to serve, a
forewoman was elected and the jury was put in charge with
each of the 27 allegations on the indictment being read out
to the them.

Background
Mr FitzPatrick (68) of Whitshed Road, Greystones, Co
Wicklow is accused of failing to disclose to the banks
auditor Ernst and Young the details of directors loans he
received from Anglo between November 2002 and February
2008.
He pleaded not guilty to 27 offences under the 1990
Companies Act.
These include 22 charges of making a misleading, false or
deceptive statement to auditors and five charges of
furnishing false information in the years 2002 to 2007.
The judge said when the trial resumes before the jurors the
counsel for the State, Dominic McGinn SC, would open the
case during which, I have no doubt, that lengthy and rather
daunting indictment will be explained to you.
Its an awful lot to digest listening to 27 counts being read
out so dont worry if you didnt get a note on all of them,
Judge Aylmer continued.
http://www.thejournal.ie/sean-fitzpatrick-trial-6-
3045422-Oct2016/
Problems with choosing
impartial jury continue in the
trial of Sean FitzPatrick
Sean FitzPatrick is facing charges of misleading the banks auditors
about millions of euro in loans.
Sep 26th 2016

THREE NEW JURORS have been sworn for the trial of

former Anglo Irish Bank chairman Sean FitzPatrick on
charges of misleading the banks auditors about millions of
euro in loans.
Last week, a specially enlarged jury panel of 15 had been
sworn at Dublin Circuit Criminal Court for the trial, which is
expected to run for three months. Today, three of those
jurors were excused and new jurors sworn to replace them.
Sean FitzPatrick, aged 68, of Whitshed Road, Greystones, Co
Wicklow is accused of failing to disclose to the banks
auditor Ernst and Young the details of directors loans he
received from Anglo between November 2002 and February
2008.
He pleaded not guilty to 27 offences under the 1990
Companies Act. These include 22 charges of making a
misleading, false or deceptive statement to auditors and five
charges of furnishing false information in the years 2002 to
2007.
Judge John Aylmer told the jury, which now comprises nine
women and six men, that he was giving them a final
opportunity to reflect on whether they were certain that they
could approach the case with impartiality.
He told them that they must not seek out information on the
case on the internet or through social media. He asked them
not to discuss the case with family or friends.
He said they must be absolutely impartial towards all parties
involved and return a verdict in accordance with the
evidence presented in court.
Judge Aylmer asked the jury to return tomorrow afternoon
and said he would then be sending them away for
approximately two weeks.
Decidedly not neutral
Last week, the usual exclusions involved in the process of
choosing a jury were extended when potential jurors were
told they must not serve if they were affected by the banking
crisis or have expressed any views on it on social media or
any other public forum.
They were also told they should not serve if they are a
member of any protest group, including anti-austerity
groups. Banking sector employees and shareholders were
also excluded.
One woman was excused from serving after telling the court
she is decidedly not neutral when it comes to bankers.
Another man indicated he was willing to cancel an upcoming
holiday to serve but he was objected to by the defence.
Another 72 potential jurors were excused for various reasons
before a final jury of eight women and seven men was sworn
in.
Judge Aylmer told jurors they must not seek out information
on the trial outside of the court.Were all aware of the
availability to everyone of the internet, newspapers or social
media, he said.
The case should finish by Christmas and may take less than
the estimated three months.
With reporting from Conor Gallagher
Comments are closed on this article as legal proceedings
are ongoing.
http://www.thejournal.ie/thre
e-new-jurors-sworn-in-
2997463-Sep2016/

Enlarged jury of eight women

and seven men sworn in for
Sean FitzPatrick trial
The trial is expected to run for three months.
Sep 21st 2016
THE TRIAL OF former Anglo Irish Bank chairman Sean
FitzPatrick has begun at Dublin Circuit Criminal Court
where he today denied misleading the banks auditors about
millions of euro in loans.
A specially enlarged jury panel of 15 has been sworn for the
trial, which is expected to run for three months.
Mr FitzPatrick (68) of Whitshed Road, Greystones, Co
Wicklow is accused of failing to disclose to the banks
auditor Ernst and Young the details of loans of up to 119
million which he received from Anglo between November
2002 and February 2008.
He pleaded not guilty to 27 offences under the 1990
Companies Act. These include 22 charges of making a
misleading, false or deceptive statement to auditors and five
charges of furnishing false information in the years 2002 to
2007.
The prosecution intends to call 75 witnesses including Matt
Moran and Tiarnan OMahoney who worked at the now-
defunct bank. Alan Dukes, the former chairman of Anglos
successor bank IBRC, will also be called.
In addition to the usual exclusions, potential jurors were
told they must not serve if they were affected by the banking
crisis or have expressed any views on it on social media or
any other public forum.
They were also told they should not serve if they are a
member of any protest group including anti-austerity
groups. Banking sector employees and shareholders were
also excluded.
One woman was excused from serving after telling the court
she is decidedly not neutral when it comes to bankers.
Another man indicated he was willing to cancel an upcoming
holiday to serve but he was objected to by the defence.
The defence challenged eight potential jurors in total while
the prosecution challenged four. Counsel are allowed to
challenge up to eight jurors each without giving reason.
Another 72 were excused for various reasons before a final
jury of eight women and seven men was sworn in.
Judge Aylmer told jurors they must not seek out information
on the trial outside of the court.
Were all aware of the availability to everyone of the
internet, newspapers or social media, he said.
He also asked the the jurors not to discuss the case with
family or friends.
The case should finish by Christmas and may take less than
the estimated three months.
The jury will return on Monday before being sent away for
two weeks while legal arguments take place.
Comments are closed on this article as legal proceedings
are ongoing.

http://www.thejournal.ie/sean-fitzpatrick-trial-5-2989726-Sep2016/

Ex-Anglo chairman succeeds in

bid to get new trial judge
Sean Fitzpatrick made an application to the High Court to have another
judge take the trial.
Apr 11th 2016
CIRCUIT COURT JUDGE Patrick McCartan has agreed to
recuse himself from Sean FitzPatricks trial on charges of
misleading auditors of Anglo Irish Bank.
Mr FitzPatrick (66) of Whitshed Road, Greystones, Co
Wicklow has pleaded not guilty to 27 offences under the
1990 Companies Act.
These include 21 charges of making a misleading, false or
deceptive statement to auditors and six charges of
furnishing false information in the years 2002 to 2007.
Judge McCartan was assigned to the trial earlier this year
which led to Mr FitzPatrick, who was chairman of Anglo,
making an application in the High Court to have another
judge take the trial.
Judge McCartan previously presided over the trial of three
Anglo officials who were jailed between one and three years.
The Court of Appeal later quashed the convictions of two of
the accused, Bernard Daly and Tiarnan OMahoney.
Stepping aside
Judge McCartan initially refused to recuse himself from Mr
FitzPatricks trial.
In the High Court last week his defence counsel Bernard
Condon SC was told to again ask Judge McCartan to step
aside. This would allow the judge to discuss the issue with
the Circuit Court President, Mr Justice Richard Humphreys
said.
Since then Judge McCartan has agreed to recuse himself and
allow Judge Rory McCabe take the case.
Today Judge McCabe said he is anxious for the trial to
proceed in late May. The trial is due to take three months
and will require a specially enlarged jury of 15 members.
Mr FitzPatrick has denied 27 offences under the 1990
Companies Act, including 21 charges of making a
misleading, false or deceptive statement to auditors and six
charges of furnishing false information in the years 2002 to
2007.
Comments have been closed as the article concerns an
active court case.

http://www.thejournal.ie/sean-fitzpatrick-new-judge-
2709810-Apr2016/

Anglo Irish Bank chairman

Fitzpatrick steps down
Thu, Dec 18, 2008

Chairman of Anglo Irish Bank Sean Fitzpatrick has stepped down tonight
in a controversy surrounding directors' loans.

In a statement Mr Fitzpatrick he said he had made his decision in the best

interests of the bank and all its stakeholders. He said his decision related
to loans he had with the bank totalling 87 million which will be included
in the annual report for 2008 in the note relating to Directors Loans.

This balance is substantially higher than in the 2007 report because in

prior years I had temporarily transferred my loans to another bank before
each year end. I had done this on my own initiative over an eight year
period, the statement said.

He said the transfer of the loans between banks did not breach banking or
legal regulations. However it is clear to me, on reflection, that it was
inappropriate and unacceptable from a transparency point of view, he
added.
He said he was fully responsible for my own decisions and actions and
said he regretted he had adopted this approach.

The Board of Directors of Anglo said in a statement it accepted Mr

Fitzpatricks resignation with regret.

Mr FitzPatricks decision to resign is based on the fact that, over a period

of eight years to 2007 he temporarily transferred loans with Anglo Irish
Bank to another bank prior to the Groups year end. This transfer of loans
did not breach banking or legal regulations. It was, however, inappropriate
from a transparency point of view," the statement said.

Lar Bradshaw, a non-executive Director with Anglo, also tendered his

resignation. His decision was based on the fact that a loan, which he held
jointly with Mr Fitzpatrick, was temporarily transferred to another bank
prior to year end, the Anglo statement added.

Donal OConnor will replace Mr Fitzpatrick as chairman. Minister for

Finance Brian Lenihan said in a statement that Mr OConnor's
appointment was made following consultation with him.

Mr Lenihan said Mr Fitzpatrick's resignation would not interrupt the

"substantial progress" which has been made with Anglo Irish Bank in
relation to the recapitalisation programme announced on Sunday. Mr
Lenihan reiterated his commitment to underwrite the capital needs of
Anglo Irish Bank and to ensure its "long term strength and viability as a
bank of systemic importance in Ireland."

He expressed his disappointment at the circumstances surrounding the

resignation of Mr FitzPatrick but said he believes "strong corporate
governance must be upheld by all financial institutions in the Irish
financial system."

http://www.irishtimes.com/news/anglo-irish-bank-
chairman-fitzpatrick-steps-down-1.833261
In 2008, #SeanFitzpatrick said some dealings were "inappropriate and
unacceptable from a transparency point of view"

The #ODCE says that the employee who shredded documents in the
#SeanFitzpatrick case was "under enormous stress"
Ireland's new flag thanks to #FF #FG #AppleTax, #SeanFitzpatrick, Denis
O'Brien, Michael Lowry, #Digicel, Judiciary, Garda, #liveline
No accountability for Ireland's corrupt bankers, politicians & Gardai. Our
democracy is in serious trouble. #rtenews #SeanFitzpatrick

Justice in #Ireland?!? FitzPatrick, CEO

of collapsd #Anglo bank, acquitted of
ALL 126 charges against him. Well
done #DPP
Probably the most fucked-up battle bus in the history of
the state.

Probably the most fucked-up battle bus in the history of

the state.

#JonathanSugarman @WhistleIRL found #actor 2play U in crime of the

century ignored by #FFFGLAB @mariebrod @angiebeeb we can go 2 premier

Why did @campaignforleo dodge @Ginosocialist's question if he was ever on

social welfare? Does Leo Varadkar think it's beneath him?
This is what life is about, respect
Paper does not refuse ink, nor the @FT utter nonsense. #Recovery ? Oh, that
26% growth?!? #EndaKenny @FineGael
Should the Govt sell AIB ? Can it spend the money from
the sale ? My blog

Using AIB money to pay debt won't win sympathy

Whoever becomes the next finance minister will have
some big items on their in-tray, with the sale of one
quarter of the Government's stake in AIB rapidly becoming
a hot political topic.
rte.ie
EndaKenny, we shook hands when u
tried to get elected. 'Funny' u never
got in touch since... @EndaKennyTD
@FineGael #JonathanSugarman
Must say I admire how quickly @wallacemick and company turned around
these ads, on buses in Dublin for a week now

Truth To Power
The state and it's representatives set out to diminish Dara Quigley as they did
@EricaHome1 irishtimes.com/news/ireland/i
https://www. #RIPDaraQuigley
rish-news/dara-quigley-she-wasn-t-afraid-and-she-wasn-t-a-victim-1.3081474?mode=amp

#twip
The Central Bank set up a
"whistleblower hotline" to report white
collar crime in 2014 - it didn't work out
so well medium.com/@brownec4/bank https: // ers-

r u i n e d - o u r- c o u n t r y - l e o - n o t - s o c i a l - w e l f a re - re c i p i e n t s - b 0 7 8 8 b 7 e b a 1 7 ? s o u rc e = l i n k S h a r e - 5 e 7 a f 4 4 7 e 9 b 2 - 1 4 9 4 3 2 4 4 7 4
Water meter for sale, surplus to requirements! #vinb
#cblive discussing #Blasphemy (Fake) but NOT #JonathanSugarman
#promnotes #irishwater referendum #veratwomey #gardai scandals
Funny' that #Dublin & #Berlin have been so quiet abt t collapse of #DEPFA
#Deutschland kept hapy
Villager September-October 12
including threats to whistleblower,
Sugarman
by Village 11 September, 2012, 5:00 pm Comments are of

Cover-up
Jonathan Sugarman, a former Risk Manager, blew the
whistle on his then employer Unicredit Bank, Italys
biggest, which in 2007 failed dramatically to maintain
proper liquidity ratios which keep banks from customer
runs on their funds. Village was the first to name
Unicredit, despite threats from McCann FitzGerald
solicitors that Unicredit would sue if implicated.
Subsequently the Central Bank Financial Regulators
Department, announced that it would consider any
information ofered about the afair in confidence but
when Sugarman contacted them they revealed that in fact
they reserved the right to report him to the Gardai for
criminal activity if he ofered the Central Bank information
that implicated him. In the end in February Sugarman
bravely nevertheless met the Central Bank, which
indicated that they had already asked Unicredit to recreate
reports dating back to the alleged breaches in 2007 but
gave no information as to how their investigations were
proceeding. Subsequently the Central Bank indicated,
with no reasoning, that it was closing the file and notably
failed to produce minutes. When the Irish Independents
intrepid Mark Keenan recently started sniffing about the
issue, the Central Bank finally sent minutes of the
meeting, It is not clear if the file remains closed, or why,
and the Central Bank, for the moment is keeping schtum.
Hogans magic touch
So water charges will not become fully operational until
2016, at the earliest. Coincidentally, a general election will
be held before that date. Big Phil Hogan who has gone
politically AWOL after presiding over the household charge
and septic-tank fiascos, is now applying his monkey-
repairing-a-television-set nous to domestic water metering.
Bord Gis has been awarded the contract for running the
system. Expect to hear very little until the last minute, and
certainly no justifications for any new unpopular taxes from
this, the States least ideological Minister ever.

Going Nowhere
Reflecting the general stasis, it is remarkable how small
the fluctuations in the numbers of unemployed are. Even
anecdotally there is little talk of hordes heading to
Nirvanas in the New World. A beleaguered domestic
population has resigned itself to pestilence and reality TV.
Numbers on the register have fallen only marginally, from
440,300 in January to the current level of 434,400. In 2012
the unemployment rate has moved between the very
narrow band between 14.7% and 14.8%.

Letterkenny coming to the Home Counties

With the Cabinet reshuffled to incorporate even more
Oxbridge Tories and Northern Ireland secretary Owen
Paterson installed as Minister for the Environment it is
interesting that Britains Chancellor of the Exchequer
George Osborne has signalled plans for a major
deregulation of planning laws, raising the prospect of
allowing more development of Englands 6,000 sq miles of
green belt land. He wants to see more imaginative
thinking by planning authorities and, in thinking redolent of
swan- and snail-hating Bertie Ahern, will fast-track
whatever it takes by October. Ireland doesnt really bother
with green belts, so no lessons there for us, anyway.
Osborne also refused to rule out the option of building a
third runway at Heathrow, saying all options were being
considered. This has annoyed Zac Goldsmith, the tofee
Tories environmental conscience and Boris Johnson, not
to say the Lib Dems (remember them), who note the
expansion was foresworn in the coalitions manifesto.
Clegg should dial up the blower to John Gormley for a pep
talk.

Socialists panic over Indo onslaught

The implosion of the Socialist Party over Clare Dalys
support for Mick Wallace can only be rated as a victory for
those behind the Irish Independents vitriolic campaign
against the financially troubled property developer turned
TD. At the height of the controversy earlier this summer
surrounding Wallaces outstanding debts to the Revenue
the Indo bizarrely ran the Wexford TDs problems across
its front page every day for two consecutive weeks. As
many of the remaining Socialist Party and ULA deputies
ran for cover the heat came on Daly for standing by, and in
the Dil continuing to sit with, the embattled Wallace, who
apologised for his unquestionably unacceptable dealings
with the Revenue Commissioners and ofered to pay them
half his salary. For some in the Socialist Party turning on
Daly provided a long awaited opportunity to cut the Dublin
North representative down to size particularly in light of
her strong media and Dil performances since elected as
their second TD. Those who relented in the face of the
campaign by the Independent News and Media titles
against Wallace did not seem to notice the irony of a
media group attacking a politician over his revenue
problems when its tax exiled owners have been evading
their responsibilities on multiples of the amounts owed by
the Wexford TD for decades.

Click
Villager has replaced his plastic-framed Athena poster of
Brad and Angela, Brangelina with one of Clare and Mick.
Click?

Lie or just bluff?

Day one: Mitt Romney, man of action, will declare China a
currency manipulator, allowing me to put tarifs on
products where they are stealing American jobs unfairly .
Futurology does not record what the reaction of China will
be, nor on what day. But Villager notes that China is the
biggest foreign buyer of US debt securities. If it decides
not to participate in the next Treasury auction, desperate
recourse to the financial markets will be required, sending
interest rates soaring and, most importantly, polls dipping.

GM What?
No-one in Ireland cares about Genetically-Modified food
and how they may spawn irrepressible super-species.
Teagasc (whatever that is) was recently granted
permission by the Environmental Protection Agency to
grow GM spuds and theyve apparently now been planted
at Oak Park. Minister Phil Hogan can instruct Teagasc in
writing to do, or undo, anything he wants, so ultimately the
decision falls on his desk.
Meanwhile, twelve applications were made in the High
Court recently for NPE (Not Prohibitively Expensive)
Orders by EU citizens, invoking the only-recently-ratified
EU Aarhus Convention. The NPE Orders sought
protection from risk of exorbitant expenses in this, the
most expensive legal system in the EU. But the potatoes
are growing away, oblivious.

Savage but Prone

Village has in the past noted the correlation between
meaningful surnames and personality or profession. So for
example, in a move that may presage development of a
new Heathrow runway, Minister Justine Greening has
been moved out of Britains transport portfolio. Meanwhile,
Nick Buckles of security giant G4S admitted, under severe
time pressure, that the firm couldnt meet its obligations to
provide security staf to the London Olympics. Villager has
always been disproportionately fearful of the
Communications Clinic, led as it is by Terry Prone and the
Savage family if only because of the potential for
Nice/Nasty role-playing on their PR victims.

Whats the Rory story?

Villager is surprised how little fuss is being made of Rory
Coveneys appointment as special adviser to Noel Curran,
DG of independent broadcaster, RT. Coveney is brother
to Greencore MD Patrick and Minister for Agriculture,
Simon.

Scorched earth
The recent An Bord Pleanla approval for demolition of
nos. 32 and 33 Henry Street was the worst decision in
Dublin City in years according to Kevin Duf of An Taisce.
It runs counter to recent decisions on Frawleys in the
Liberties, the Ardee House pub on Newmarket and a
number of buildings on King St where demolition has
recently been refused. The buildings are in what is
supposed to be an Architectural Conservation Area.
The Henry St buildings, once the Tower and Arch pubs,
are the only ones on that street to have survived the fires
and destruction which occurred during the 1916 Rising
and the Civil War. They were occupied by volunteers
during the 1916 Rising. Henry Place, which is the laneway
along the side of no. 33, was the route that the evacuating
garrison (including five of the leaders) travelled towards
Moore Street from the burning GPO on the Friday of
Easter Week 1916. The Save Moore Street group want
these buildings and laneways to be declared a battlefield
site and protected.
Anomalously, the current government has set up a 1916
Centenary Committee and Minister Leo Varadkar recently
instructed Filte Ireland to examine the possibility of
opening a 1916 tourist trail. There is a chasm between the
Bord Inspectors Report and recommendation and the
Boards decision to grant (a split decision 3:3 with the
casting vote by the Chairman). The Inspectors reasons for
recommending refusal were detailed but the Board stated,
In deciding not to accept the Inspectors recommendation
to refuse permission, the Board considered that the
demolition of numbers 32 and 33 Henry Street, neither of
which are protected structures or referred to in Appendix 2
of the OConnell Street Architectural Conservation Area
2001, was justified on the basis of the restoration of
numbers 68 and 69 OConnell Street and 31 Henry Street,
the quality of the proposed replacement building and the
need for Dublin City Centre to play its role at the top of the
retail hierarchy.
As to 68 and 69 OConnell Street the Inspector was less
convinced: the heritage value of the existing structures on
site is mainly to do with their external appearance and
contribution to the streetscape with the level of features
internally not exceptional or hugely significant in terms of
architectural heritage. So the Board is approving partial
demolition of the streetscape in order to protect the
streetscape. Local traders are said not to be amused.

Lawyers get stuck in to SIPO, at taxpayers expense

The City Council and Labours Councillor Oisn Quinn will
be in the High Court in October challenging the Standards
in Public Office Commission (SIPO)s decision to find
Quinn breached ethics legislation in proposing resolutions
in Dublin City Council that could have raised the height of
the Revenue Commissioners Building on Mount St that he
and his family own. Villages editor who initiated the
complaint to SIPO is a notice party.
https://villagemagazine.ie/index.php/2012/09/villager-3/
Global investment funds have
made Ireland a world capital
for shadow banking
The sector is more than 10 times the size of the Irish economy.
May 7th 2017,

IRELANDS SHADOW BANKING sector continues to grow,

and is now one of the largest in the world.
According to new statistics from the CSO, companies in
Irelands so-called shadow banking sector held an
estimated 2.9 trillion worth of assets in 2015, up from 2.3
trillion the year before.
Shadow banking typically refers to financial companies that
perform bank-like activities, but are not regulated like a
bank. Examples include mobile payment systems,
investment funds and asset management firms.
While many companies and investment vehicles in the
shadow-bank sector are regulated, the degree of oversight
tends to vary between jurisdictions.
Critics worry about the sector due to the fact that, unlike a
lot of traditional banks, the practises of shadow banks can
obscure risks while also allowing the beneficiaries of
transactions to go without proper vetting.
However, the shadow-banking system is also essential to the
global financial system as it provides credit to individuals
and businesses in areas where traditional banking does
not. Ireland has one of the biggest shadow-banking sectors
in the world.
Shadow banking centre
According to the Financial Stability Board, a group of global
regulators, Ireland ranks only behind the likes of China, the
UK and US when it comes to the worlds biggest centres for
shadow banking.
The local industrys size in 2015 was more than 10 times the
value of the countrys entire economic output. Ireland is also
one of the few countries in the world which has a shadow-
banking sector that is bigger than the domestic banking
industry.
This is due to the international nature of the shadow-
banking sector in Ireland, which has limited linkages to the
domestic economy. Most companies in Irelands shadow-
banking sector do the bulk of their business outside the
country.

Many finance firms are based in the IFSC

Source: William Murphy
Until late 2015, special-purpose vehicles operating in the
country didnt have to tell the regulator, the Central Bank,
that they were in Ireland unless their activities crossed over
with regulated areas.
Since then, Irish officials have been collecting information
on shadow banking in an effort to understand the sector and
the possible risks that it could pose.
According to the new statistics from the CSO, the entire
financial sector in Ireland is estimated to have assets worth
4.6 trillion. After removing banks and financial auxiliaries
such as insurance brokers, this estimate drops to 3.9
trillion.
Expansion
The CSO then discounted several different types of financial
organisations, such as pension funds and equity investment
funds, to get an estimate of 2.9 trillion for the shadow
banking sector.
The remaining provisional estimate is large, though this is
reflective of the type of behaviour present in the Irish
economy, it said.
The CSO said there was an expansion of the shadow banking
sector between 2013 and 2015, which it said was largely
driven by the increase in the non-MMF investment funds
sector.
Non-MMF investment funds refer to all funds except for
money market funds. Assets held by these bodies rose from
1.2 trillion in 2013 to almost 1.8 trillion in 2015.
The statistics body said future work will try to get more
information on different sectors in the shadow-banking
system.
This may be useful to monitor to what extent the relevant
units are engaged in shadow banking activities, the CSO
said.
It said that more information on the shadow banking
industry may reveal to what extent assets in the financial
system are financed by the financial system itself and what
part is transferred to final investors outside the financial
system

http://www.thejournal.ie/shadow-banking-ireland-3-3375469-
May2017/?utm_source=twitter_self
Has Marian been banned from interviewing @WhistleIRL
#JonathanSugarman ?. Or is it her own choice ?.
Simon Coveney, Enda Kenny, Leo
Varadkar and Frances Fitzgerald fully
support Noirin O'Sulivan. La la land
stuff imo
Where is the truth ?. What time are you interviewing @WhistleIRL ?.
I took a few liberties ...
My thanks to @lukeming & @ballyhea14 for having t guts that so many Irish
politicians lack. Mario @ECB, letter cmng
Given the huge numbers of highly paid 'experts' all knowing nothing, the lot of
them should be fired! Same problem across the civil service.
New Social Welfare anti-fraud poster. Report to #Rat4Leo:
welfare.ie/en/Pages/secur @rtenews #vinb #rtept #MorningIreland
https://www. e/ReportFraud.aspx

#cblive #todaysor
FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy
additional rights. Subscribers may share up to 10 or 20 articles per
month using the gift article service. More information can be found
here.
https://www.ft.com/content/7574484a-2fde-11e7-9555-
23ef563ecf9a

A few years ago, Carmen Reinhart and Kenneth Rogoff wrote a

research paper suggesting that public debt became a significant
brake on economic growth once it exceeded 90 per cent of GDP.
Their study provided justification for the policy choice adopted
more or less universally by rich countries at the time to pursue
aggressive fiscal consolidation to rein in public borrowing which had
exploded in the 2008-9 economic collapse. As it turned out, the
paper contained erroneous calculations. Once corrected, the
purported threshold effect evaporated. This led to an academic
scandal, but one that had political consequences: it allowed critics of
austerity to say that such policies were unfounded in economic
evidence. Post-crisis austerity has indeed done more to depress
growth than to boost it. But it is a mistake to believe that this
episode shows debt overhangs do not matter for growth. As a
thorough study just published in The Review of Economics and
Statistics shows, there may be no threshold above which debt
suddenly becomes onerous; but rising debt burdens do seem to slow
down growth. Given that the current predicament of most
economies is a combination of a stubbornly slow recovery and large
public and private debt burdens, it behoves policymakers to
understand better the impact of debt and how to address it. Note,
for example, the signs of high private sector vulnerability to debt
service costs even in relatively robust economies such as the US. A
series of other new studies adds to our understanding of how debt
matters. Keiichiro Kobayashi provides theoretical explanations of
how excessive debt burdens can cause persistent stagnation at the
macroeconomic level. If businesses hit the limit of how much they
are able to borrow, they may, after a shock (such as a financial
crisis), end up producing at an inefficient scale, but still remain in
existence while using their inefficient production to service debt. In
such a situation, either liquidation or debt restructuring that allows
the company to optimise its amount of borrowing or scale of
production can increase productivity in the economy. In their
absence, banks have no incentive to forgive excessive debt
burdens. This is because banks are satisfied with repayments from
debt-ridden borrowers, even though the borrowers themselves
suffer from inefficiency due to debt overhang, which in turn
depresses the aggregate economy. Its not just in a downturn that
the amount of debt in an economy has macroeconomic effects.
Another new study examines the effect of the US government-
sponsored mortgage companies in the run-up to the crisis. It finds
that by increasing the amount of mortgage debt, such credit policies
have a comparable effect to conventional stimulative monetary
policy (low interest rates). In other words, policies that increase
private sector debt add to aggregate demand even if monetary and
fiscal policy remain restrained. What does all this imply for policy in
the current circumstances? Central bank liquidity clearly helps. A
fourth study looks at a fascinating case study: the French phylloxera
blight in the 19th century. Because the securities posted as
collateral for central bank support needed to be physically
presented, banks in places with branch offices of the central bank
received more liquidity than others and, it turned out, their districts
experienced fewer private sector defaults in the crisis. So central
bank support can mitigate debt problems by preventing illiquidity
from turning into insolvency. But as Kobayashi rightly argues,
liquidity support is not sufficient, since surviving debt-burdened
private sector companies may operate inefficiently. Active
interventions by the government are therefore necessary to restore
economic growth...by promoting debt restructuring or wealth
redistribution from lenders to borrowers. Policy measures may
include regulatory reforms to make bankruptcy procedures less
costly and more debtor-friendly, promoting debt-for-equity
conversions to reduce outstanding debt, and the injection of
subsidies (or equity) in the banks that forgive debt and write off
non-performing loans. Most governments have pursued (sometimes
belatedly) aggressive fiscal and monetary policies since the crisis.
These have helped, but only up to a point: the recovery has been
disappointing. The conclusion should not be to pull back, but rather
to develop a third macroeconomic tool consisting of credit and debt
management policies aimed at the private sector. Their goal should
be large and immediate reductions in private sector indebtedness.
All rich countries, and many emerging economies, are being held
back by debt overhangs, but Europe is the most affected. As the
eurozone works to finalise its policy on Italian banks, it should keep
an eye on the prize: it can set an example for the world as well as
remove a brake on growth. Other readables The European Council
has unveiled its Brexit negotiation mandate. Twenty years after the
Bank of England got its freedom from political influence, Ed Balls
and Anna Stansbury revisit the case for central bank independence.
Numbers news Matthew Klein looks under the hood of buoyant US
consumer expectations and finds that the entire rise in optimism is
down to older and less educated respondents. The young and the
educated have if anything become less optimistic since Donald
Trump was elected president. The eurozone posted growth of 0.5 per
cent in the first quarter markedly faster than the UK.

No date for when country will

re-engineer bank debt
Taoiseach
Enda Kenny said his government remained committed to negotiations to
reduce Irelands banking debt.
Jun 12th 2012,

TAOISEACH ENDA KENNY has reiterated the governments

commitment to getting a better deal on the countrys bank
debt by reducing the interest rate and lengthening the term
of repayments but said he can give no date for when it will
happen.
At Leaders Questions in the Dil today, Kenny came under
pressure from Fianna Fil leader Michel Martin and Mary
Lou McDonald over Irelands banking debt following the
weekend announcement of a bailout for Spains troubled
banking sector.
Accused of going around with his eyes closed, of engaging
in spin and failing to stand up for Irelands interests,
Kenny hit back by saying that the government continued to
engage in negotiations with the Troika over lessening the
bank debt burden.
Irelands position here is it continues to negotiate the
complex position with the Troika with a view to having a re-
engineering of our debt, he told the Dil.
Theres a clear strategy, to continue to negotiate, where we
can reach an agreement where that target can be achieved
lower interest rates, longer term.
Addressing McDonald, he said: I remind you that the IMF,
the European Commission, the head of the European
Commission, Commissioner Rehn have all stated that
Ireland will continue to have support in the context of
negotiations to reduce our debt problem and to bring this to
a conclusion.
Pressed on when Ireland could expect to have such a deal,
Kenny responded that he could not answer the questions as
negotiations were not completed.
I cant give you a date for that and therefore I cannot tell
you, he told the Sinn Fin deputy leader.
Kenny also expressed support for a European banking
union, an idea suggested by the president of the European
Commission Jose Manuel Barosso in todays Financial
Times.
The idea broadly includes all 27 EU member states
submitting their big banks to a single cross-border
supervisor with an EU-wide deposit guarantee scheme and a
rescue fund paid for by a levy on financial institutions.
I would be supportive in principle of a banking union
Kenny said in response to questions from Independent TD
Shane Ross. He said that setting up such a process would be
less complex than other measures.
Asked by Ross if the government had any preparations for
the potential collapse of the single currency, Kenny said: I
wouldnt venture t speculate on any of that.
http://www.thejournal.ie/no-date-for-when-country-will-re-engineer-
bank-debt-taoiseach-484247-Jun2012/

FF: Claims of no bank

guarantee documents are a
lie, and this FOI proves it
The government continues to insist that there are no documents in
existence which explain the rationale behind the decision to guarantee
the banks in September 2008.
Jul 8th 2013,
THE TAOISEACHS REPEATED claim that there are no
records in his Department of the rationale behind the
decision to issue a blanket guarantee of Irish banks nearly
five years ago has come under scrutiny again in light of the
Anglo Tapes.
Enda Kenny continued to insist last week that there is no
record in the Department of the Taoiseach of the
conversations about this matter between bankers and those
who were in government.
His claim has been strenuously denied by Fianna Fil which
has released a document to TheJournal.ie which outlines a
schedule of all documents relating to the bank guarantee,
many of which cannot be released because of government
confidentiality. http://www.bankinginquiry.gov.ie/The
%20Irish%20Banking%20Crisis%20Regulatory%20and
%20Financial%20Stability%20Policy%202003-2008.pdf

A spokesperson for Fianna Fil has described the

Taoiseachs claims as a disingenuous smear campaign and
a lie. But a government spokesperson insisted this week:
There is nothing to document the rationale behind the
decision that was taken by the government. Nothing.
The document is what is known as a schedule of records
and lists 146 documents which are relevant to the request
from Fianna Fil for a copy of all notes, memos,
documents and briefing material available in the
Department of the Taoiseach in relation to the banking
guarantee of 2008,

all internal documents in relation to the guarantee, any

notes from meetings with experts and outside groups in
relation to the guarantee since the guarantee was approved
in 2008 and any notes that contained references to
shredding documents about the banking guarantee.
Read the FOI schedule of records related to the bank
guarantee >
Fianna Fail foi-bank-guarantee-schedule-of-records
http://cdn.thejournal.ie/media/2014/01/ff-foi-bank-
guarantee-schedule-of-records.pdf

No rationale
Of the 146 documents 106 have been withheld, 31 have been
released in full and four have been partially released. Many
of the records are withheld under section 19 of the Freedom
of Information Act which concerns the confidentiality of
government records.
Descriptions of the withheld documents include minutes of
Government meeting, a memorandum for government, a
draft guarantee bill and notes concerning discussions on 30
September 2008 - the date the Fianna Fil-led government
made the decision to guarantee the banks.
Speaking to TheJournal.ie a government spokesperson
insisted that this document does not disprove the
Taoiseachs repeated claims of there being no record of the
rationale behind the decision to guarantee the banks.
What we have is, and it has been released under Freedom
of Information already, is a few years of procedural and
administrative documents that refer to certain meetings
taking place but no evidence of any discussion, no minutes,
no memorandum, the spokesperson said.
They added: I think its very reasonable to point out, as the
Taoiseach said at the time and as the Taoiseach does now,
that there exists no documentation as to the rationale
behind that decision. There isnt anything.
No file
Fianna Fil said the the circumstances leading up to the
guarantee of the banking system are laid out in three
independent reports including the report by the current
Central Bank governor Patrick Honohan.
In his report of May 2010, Honohan wrote: A detailed
review of the ensuing discussions is hampered by the
absence of an extensive written record of what transpired.
Enda Kenny first claimed that no documents existed in his
Department in July of last year, telling the Dil: There is no
file in the Department of the Taoiseach. There is no file on
the discussions or the meetings that took place, and the
rationale applied to that.
A spokesperson for Fianna Fil said that the schedule of
records proves the Taoiseachs claim to be demonstrably
untrue and has described the governments position as
being a completely disingenuous smear campaign that they
are running.
They are throwing up new things that they know are just
ridiculous, the spokesperson added.
http://www.thejournal.ie/fianna-fail-taoiseach-no-bank-guarantee-
documents-978865-Jul2013/

After four years and 64.1

billion, bank guarantee is
finally scrapped
Ireland will still guarantee bonds issued by banks since 2010, but will no
longer guarantee new bonds or high-level deposits.
Mar 29th 2013
IRELANDS BLANKET GUARANTEE for its banking sector
has been officially withdrawn, after four-and-a-half years.
The guarantee introduced in infamous haste in September
2008, as an effort to save the banking system from collapse
meant Ireland had to foot a 64.1 billion cost for saving
individual banks.
The sheer cost of the banking bailout meant Ireland itself
was forced into an EU-IMF bailout in November 2010, when
the scale of its banking losses leaving investors demanding
penal interest rates in order to lend to the Irish government.
Six institutions were covered by the guarantee AIB, Bank
of Ireland, EBS Building Society, Irish Life & Permanent,
Anglo Irish Bank and Irish Nationwide.
Irelands investment into those institutions left it with a 15
per cent stake in Bank of Ireland, a 99.8 per cent ownership
of AIB, and in total ownership of EBS, IL&P, Anglo and Irish
Nationwide.
EBS has since been restructured into a subsidiary of AIB,
while Irish Life & Permanent has been split into two with the
Irish Life arm sold off to the owners of Canada Life, while
Permanent TSB remains a wholly-owned government bank.
Anglo and Irish Nationwide were merged into a new body,
the Irish Bank Resolution Corporation, which is currently
being liquidated.
Guarantee for previous bonds still lingers
The withdrawal of the guarantee which lapsed at midnight
means the Irish government will no longer offer a state
guarantee for any new bonds issued by the banks.
It also means that if the banks require further
recapitalisation, after the next round of stress tests, the
government will not be considered legally responsible for
offering any further investment.
The withdrawal also means that the State will revert to
guaranteeing deposits up to 100,000 in each bank a
guarantee made under a separate, permanent scheme but
will not insure balances over that amount.
However, it will continue to guarantee bonds issued while
the guarantee was in place which are collectively worth
tens of billions of euro.
Two of the covered banks, Bank of Ireland and Permanent
TSB, chose to issue new bonds this week before the
guarantee ended.
Bank of Ireland borrowed 5 billion, while Permanent TSB
raised 3.065 billion, with both bonds due for repayment in
March 2015.
Each of the two bonds was issued on Wednesday, just a day
before the guarantee was withdrawn.
http://www.thejournal.ie/ireland-bank-guarantee-officially-ends-
850021-Mar2013/?utm_source=businessetc

Banks repay 3.3 billion in

fees from State guarantee
schemes
New figures show the seven banks covered by the States guarantees
have returned 3.36 billion so far.
Oct 9th 2012,
THE SEVEN IRISH banks covered by the two guarantee
schemes introduced by the government in 2008 and 2009
have so far paid 3.36 billion in fees to the Exchequer, new
figures have shown.
Figures released by the Department of Finance show that
over 750 million has been paid in fees by seven institutions
which were covered by the blanket guarantee introduced in
September 2008 and which ran for two years.
The other 2.6 billion has been paid under a second
guarantee, the Eligible Liabilities Guarantee scheme, under
which the State also agreed to guarantee new deposits and
any newly-issued bonds within a certain period. That
scheme remains in place.
Around half of the fees accrued from the latter scheme were
collected in 2011, when AIB paid fees of 465 million and
Bank of Ireland 449 million.
Fees from the scheme have slowed slightly since then, with
about 515 million paid to the State so far this year again,
with AIB and Bank of Ireland making up the lions share at
205 million and 189 million respectively.
The Irish Bank Resolution Corporation, the institution
formed by the merger of Anglo Irish Bank and Irish
Nationwide, has paid a total of 251 million under the ELG
scheme.
Bank of Ireland and AIB are again the largest contributors
under the previous blanket guarantee, having paid 239 and
233 million in the lifetime of that scheme. Anglo paid 188
million, while Irish Nationwide contributed 33 million.
EBS Building Society now a subsidiary of AIB paid 15.6
million, while Irish Life & Permanent paid a total of 50.2
million. Postbank, the financial services arm of An Post, paid
39,000.
Aside from the fees for being covered under the schemes, the
banks have also paid a total of 5.35 million to cover the
States administrative and legal costs.
The State has spent a total of 64.1 billion recapitalising the
banking sector, including a total of 20.7 billion on the now-
defunct IBRC. Some of that amount has been converted into
shares in each institution, which could be sold on possibly
to the new Eurozone bailout fund at a later point.
The transactions are largely circuitous, given that the State
now almost fully owns each of the institutions covered by the
guarantee. The only exception is Bank of Ireland, in which
the State owns a 15.1 per cent stake. AIB is 99.8 per cent
owned by the taxpayer.
The figures were released in response to parliamentary
questions from Labours Joanna Tuffy.
http://www.thejournal.ie/government-fees-bank-guarantee-626980-
Oct2012/?utm_source=businessetc

Sean Fitzpatrick 'free to

go' as judge directs not
guilty verdict
Former Anglo Irish Bank chairman Sean Fitzpatrick leaving Dublin
Criminal Court
A judge has told former banker and bankrupt Sean Fitzpatrick he is a free man
after directing a jury to find him not guilty of fraud.
May 24 2017
The ex-chairman of the defunct Anglo Irish Bank had been on trial for the last
126 days accused of "artificially reducing" personal loans for a few weeks
around the end of the financial year so their full value was not shown in
accounts.

After the longest criminal trial in Irish history, the former bank boss, who
always denied wrongdoing and pleaded not guilty, returned to the Circuit
Criminal Court in Dublin for one last time on Wednesday morning to hear the
formal acquittal.

The Office of the Director of Corporate Enforcement (ODCE), set up in 2001

to crack down on white collar crime, has said it fully accepts a judge's criticism
of its investigation into the former Anglo chief's loans.

The watchdog accepted witnesses were coached when giving statements

during the investigation and that their evidence was contaminated.

Judge John Aylmer told the jury that he would not repeat a lengthy ruling he
gave in their absence on Tuesday when he told Mr Fitzpatrick he would be
acquitted.

"The prosecution having confirmed that there is nothing else against you, you
are free to go," the judge told the former bank boss.

Mr Fitzpatrick, who was supported in court by his daughter Sarah, said:

"Thank you."
The ex-banker, who built Anglo over 30 years to become one of the biggest
lending institutions in Ireland, declined to comment on the case as he left the
courts but said he celebrated the verdict on Tuesday night.

"I've said everything I had to say yesterday, thank you very much," he said.

"I don't want to be rude but I'm not going to speak or make any comment."

After being told on Tuesday that he would be acquitted, Mr Fitzpatrick

described the trial as very long, tiring and difficult.

The 68-year-old of Whitshed Road, Greystones, Co Wicklow had pleaded not

guilty to more than two dozen offences under company law including making
a misleading, false or deceptive statement to auditors and furnishing false
information between 2002 to 2007.

Judge Aylmer gave the jury a brief outline of why he was directing the not
guilty verdict.

"If any of you have been reading the newspapers or the internet contrary to
my admonitions I can forgive you in that regard," he said.

"I've made a decision in a matter of law that the prosecution has not
established a sufficient case to go to the jury."

The judge said: "The thrust of what I've decided is that there was an
investigation of the charges against Mr Fitzpatrick which fell short of that
which an accused person is entitled to."

He added: "There are shortcomings in the evidence in relation to each of the

charges which meant that there was an insufficient case."

The jurors, who heard the case over eight months, have been excused from
jury service for life.

The ODCE said it accepted witnesses from auditors Ernst and Young were
coached while making statements and their evidence was contaminated.

The former banker's acquittal sparked criticism from opposition politicians

over the handling of the investigation, including a call for the head of the
agency Ian Drennan to resign.

The Director of Public Prosecutions, which does not normally discuss the
outcome of cases, declined to comment.

This was the second time Mr Fitzpatrick stood trial over his personal loans
from Anglo.

The first case collapsed in 2015 after it was disclosed that documents held by
the ODCE had been shredded by one of its officials.
Mr Fitzpatrick was previously found not guilty by a jury after being charged
over multi-million loans that Anglo gave to major clients, known as the Maple
10, to buy shares in the bank as its stock market price collapsed.

Anglo went bust eight years ago and cost the Irish state about 29 billion euro.

Later, Taoiseach Enda Kenny said a report on the shortcomings in the case
would be sent to Government by the ODCE.

"I did not spend the last six years as head of government making very difficult
decisions in a situation where again the allegation will be of white-collar
crime, that people can take away, that nobody is guilty and nothing is being
done about it," he said.

Micheal Martin, Fianna Fail leader, said the outcome of the trial was a
damning indictment of the ODCE.

"This has been, by any measure, a catastrophic, systemic failure," he said.

"The reputation of the ODCE is in shreds."

Gerry Adams, Sinn Fein president, called for the ODCE to be replaced. His
party's justice spokesman, Jonathan O'Brien, called for Mr Drennan, who has
headed the ODCE since 2012, to answer questions on the prosecution at the
Oireachtas Justice Committee.

"This was a high-profile case that cost the state an enormous amount of
money and nothing has come of it," Mr O'Brien said.

"The allegations being made are severe and public deserve answers."

Labour Party leader Brendan Howlin described the failures in the case as
"manifest incompetence", which he said "beggars belief".

Following the calls for a report on the case, the ODCE said it was excluded
from large portions of the trial on the judge's orders.

"Consequently, the ODCE is not at this time in possession of complete

information as regards all aspects of the trial, including legal arguments made
by the prosecution and defence, or the resultant rulings delivered by the
judge," it said.

The ODCE has asked the DPP to hand over transcripts of the trial in order to
compile a report.

http://www.belfasttelegraph.co.uk/news/republic-of-ireland/sean-
fitzpatrick-free-to-go-as-judge-directs-not-guilty-verdict-
35750809.html
A Message from the President 1 ... Michael D. Higgins made an informal visit to
NUI Galway ... Awards 2012. An Taoiseach Enda Kenny
http://www.nuigalway.ie/president/documents/presidents_report_eng
lish_2012_2.pdf
The Governor and Company of the Bank of Ireland (Company only,
not consolidated) Interim Accounts (Unaudited) for the year ended
31 December 2010
https://www.bankofireland.com/fs/doc/wysiwyg/Bank%20of
%20Ireland%20Interim%20Accounts%20%28unadited%29%20for
%20the%20year%20ended%2031%20December%202010.pdf

Danske Bank Fact Book Q4 2008 Supplementary Information for

Investors and Analysts Unaudited Updated- December 31, 2008

http://www.danskebank.com/da-
dk/ir/Documents/2008/Q4/FactBookQ42008.pdf

National Irish Bank (Danske Bank Factbook Q4 2010

http://www.danskebank.com/da-
dk/ir/Documents/2010/Q4/FactbookQ42010.pdf

Interim_Report IRISH LIFE PERMANENT 2009 Half Year Report

Six months to 30 June 2009

http://www.irishlifepermanent.ie/%7E/media/Files/I/Irish-Life-
And-Permanent/Attachments/pdf/annual-and-interim-
reports/2009/ilP_Interim_Report.pdf

Irish Life permanent Annual Report & Financial Statements 2008

http://www.irishlifepermanent.ie/%7E/media/Files/I/Irish-Life-
And-Permanent/Attachments/pdf/annual-and-interim-
reports/2008/arep08.pdf
Irish Life & Permanent plc today issues its 2010 half year report for
the six months to 30 June 2010.
http://www.irishlifepermanent.ie/%7E/media/Files/I/Irish-Life-
And-Permanent/Attachments/pdf/annual-and-interim-
reports/2010/2010-ir_report.pdf

Irish Life & Permanent Group Holdings plc report 2011

http://www.irishlifepermanent.ie/~/media/Files/I/Irish-Life-And-
Permanent/Attachments/pdf/2011/ar-2011.pdf

Noonan denies IBRC legal fees loan approval to Paddy McKillen

was in breach of European Commission commitments

May 17, 2013 by namawinelake

Additional financing to existing borrowers: The merged entity may not provide additional

financing which is not contractually committed at the time of the approval of the joint

restructuring plan (in line with the commitment referred to in point (ii)). European

Commission decision on 29th June 2011 on the run-down of Anglo and Irish Nationwide

There is no development at the High Court in respect of Paddy McKillens (and Denis

OBriens) application for an injunction against the Sunday Times and its reporter, Mark

Tighe there are no new filings and we are now well past the six weeks which was

intimated would be the full hearing date when the partial injunction was obtained by Paddy

at the end of March 2013. The Sunday Times has in recent weeks provided some additional

reporting of the general matter subject to the injunction, and it seems one of the details is

that Paddy sought what was described by the Sunday Times as an emergency loan

approval last October 2012 to pay some of the 25m estimated legal fees which Paddy was

ordered to pay when he lost his High Court challenge against the Barclay brothers.

The Sunday Times reported that Paddy sought approval for a [CORRECTED] GBP 5.0m

(6) the Sunday Times refers to a GBP 5m (5.9m) loan in one part of the story and a

[CORRECTED] GBP 5.9m legal fees bill elsewhere [CORRECTION: the loan sought was

5.9m but the legal fees bill that was falling due to be paid was GBP 5.9m, in other words,

Paddy was seeking a loan for just part of the legal fees bill] loan to pay the legal fees

that he was required to pay on account, pending the appeal of the decision, the outcome of

which were still eagerly awaiting. The Sunday Times reported that the board of IBRC

remember Mike Aynsley was then CEO and Alan Dukes was chairman approved the loan.

According to Paddy, he eventually decided to fund the [CORRECTED] GBP 5.0m element of

the GBP 5.9m legal fees from elsewhere.

All well and good.

But it seems that there is now an issue regarding the decision by the IBRC board to

approve the loan to Paddy, even if Paddy didnt eventually draw it down. IBRC operates
under rules imposed on it in June 2011 when the European Commission approved an

orderly wind-down of IBRC. One of the terms of the decision by the EU is that

Additional financing to existing borrowers: The merged entity may not provide additional

financing which is not contractually committed at the time of the approval of the joint

restructuring plan (in line with the commitment referred to in point (ii)).

Point (ii) states

Ban to develop new activities and to enter new markets: The merged entity will not

develop any new activities and will not enter new markets, that is to say that the merged

entity will not carry out any activities other than those that are consistent with managing

the work-out of the Anglo and INBS legacy loan book (including loan sales, where

appropriate, to maximise recovery values). In particular, the merged entity will maintain

and use its banking licence only as long as necessary for the work-out of the loan portfolios

and will not use it to develop new activities. [].

In the Dail this week, the Sinn Fein finance spokesperson Pearse Doherty asked Minister

for Finance Michael Noonan if IBRC breached these rules in approving a 5m (sic)

additional loan to Paddy. Minister Noonan, whilst citing the European Commission decision

overall, says that he is not aware of any breaches by IBRC of the Commitments contained

in that decision.

The parliamentary question and response is here.

Deputy Pearse Doherty: asked the Minister for Finance his views on whether the Irish

Bank Resolution Corporation breached the terms of its Commitments Letter to the

European Commission by issuing a further 5 million loan to a person (details supplied) in

2012 to pay legal costs, when their debt with IBRC amounted to approximately 900

million in personal and corporate accounts at the time. [23153/13]

Minister for Finance, Michael Noonan: I am advised by the Special Liquidators that

they are not in a position to comment on individual cases. The information requested is

confidential and it would not be appropriate for the Special Liquidators to release

such information.The terms of the European Commission Commitments letter are

contained in the Commission Decision of 29.06.2011 and published at

COMMISSION DECISION of 29.06.2011 ON THE STATE AIDS Nos SA.32504 (2011/N) and

C 11/2010 (ex N 667/2009) implemented by Ireland for Anglo Irish Bank and Irish

Nationwide Building Society (Only the English version is authentic) (Text with EEA

relevance)

http://ec.europa.eu/competition/state_aid/cases/235764/235764_1251125_112_6.pdf

I am not aware of any breaches by IBRC of the Commitments contained in that decision.

IBRC agreed loan for McKillens legal fees

Mark Tighe

April282013,1:01am,The Sunday Times

ADEVELOPERwhoowedIrishBankResolutionCorporation(IBRC)almost900minpersonaland
corporateloanswasgivenapprovalforanemergency5m(5.9m)loanlastOctobertopayalegal
bill.

TheSundayTimescannowrevealthatIBRCagreedtoincreaseitsexposuretoPaddyMcKillen
shortlybeforehefacedadeadlinetopaya5.9mlegalbillheowedafterlosinganEnglishlegalcase
overthreeluxuryLondonhotels.

McKillenwasorderedtopay17.2mincostswhenhelosthiscourtbattlewiththeBarclaybrothers,
whoownTheDailyTelegraph.Some5.9mofthebillwasduebylastOctober23.

McKillenattemptedtoinjunctTheSundayTimesfromrevealingtheIBRCloanbutwasunsuccessful.

TheHighCourt

https://www.thetimes.co.uk/article/ibrcagreedloanformckillenslegalfees3jhx3ffm9l3

Why is Paddy McKillen conducting his negotiations

with IBRC, through the press?
May 4, 2013 by namawinelake
There is deep concern on here at the special liquidation of IBRC
which will see some 16bn of assets disposed of, or transferred to
NAMA over the next six months* The disposal of the assets is taking
place behind a curtain of secrecy and Minister for Finance Michael
Noonan refuses to extend NAMAs anti-lobbying rules to the IBRC
liquidation, which means what stands between these assets and
shenanigans is the professionalism of the special liquidator, Kieran
Wallace of KPMG. KPMG has appointed UBS and PwC to value the
loans but Minister Noonan refuses to publish the request for
procurement citing commercial confidentiality. We dont even know
what the assets IBRC would have had in February 2013, because
Minister Noonan refuses to publish accounts for the second half of
2012, so the latest reporting we have on IBRC is for the six months
ended 30th June 2012.
We are still apparently at the phase of the IBRC liquidation when
existing borrowers at IBRC can refinance their loans; and when this
phase is over, the loans will be offered to the market at no less than
the valuation placed on the loans by PwC and UBS. So, right now,
IBRCs borrowers are scrambling about to refinance their loans, we
believe at 100% of their par values, though Minister Noonan refused
to confirm last week if all refinanced loans were repaid 100%, citing
commercial confidentiality.
And the most vociferous of the IBRC borrowers by a country mile
has been developer and businessman Paddy McKillen who gets a
platform in todays Irish Times here and here to attack the IBRC
special liquidator, the Department of Finance and NAMA. Paddy is
reported to have offered to pay 180m upfront for loans with a par
value of 800m, with the remainder repaid in full by 2016. Trouble
is that IBRC is being wound down now, and by 2016 should be just
a bad national memory. So it is unclear what Paddy expects IBRC to
do with his loans between now and 2016 he has previously fought
a battle against NAMA to stop his loans being taken over by the
Agency, so does he expect IBRC to be kept open specially for him?
The Special Liquidator at IBRC is reported by Paddy in the Irish
Times to have declined the 180m upfront offer so Paddy has a
platform to have a whine and make all sorts of claims but the
Special Liquidators position is not reported. A request for comment
was made to Kieran Wallace this morning but there was no response
at time of writing, and the likelihood is that no comment will be
forthcoming on a specific loan anyway.
You will be hard-pressed to find any greater display of chutzpah in
the media today than when Paddy is quoted as saying : One billion
euro of that amount [2.1bn] has already been repaid to the State
at full value Paddy is seemingly referring to his borrowings from
Irish banks. But, this presumably includes the 800m repaid after
NAMA sold 800m of loans in the Maybourne group, to the Barclay
brothers. Even though he eventually lost, Paddy, memorably, went
to court in the UK to stop that transfer! Paddy was asked to
comment on the 1bn repayment and for an outline of his
repayment plans between now and 2016, but at time of writing
there has not yet been a response.
What we all know is that some of Paddys IBRC loans relate to his
stake in the Maybourne set of three luxury London hotels,
Claridges, the Berkeley and the Connaught. And the Barclay
brothers who own 28% of Maybourne, and have received support
from Derek Quinlans 36%, have made no secret of their desire to
acquire Paddys 36% stake or at least dilute him to such an extent
that his influence as a minority shareholder would be nugatory. It
has been reported that the Barclays would be prepared to pay in
excess of the market value for Paddys Maybourne loans, and no
doubt, Paddy will use all his considerable acumen to prevent that
from happening.
But negotiating through the national press with a Special Liquidator
that is presumably constrained in his ability to comment? Paddy has
a right to refinance his loans right now at 100% and no-one, not
Minister Noonan, Secretary General Moran, Special Liquidator Kieran
Wallace nor NAMAs Brendan McDonagh can stop Paddy in doing
that. Meantime, they all have the duty to maximize returns from
these assets.
* The original plan was for most of the unsold IBRC loans to be
transferred to NAMA in August 2013, but press reporting has since
suggested this has slipped, and Minister for Finance Michael Noonan
has refused to provide an updated estimate.
UPDATE: 5th May, 2013. In the Sunday Independent today, Tom
Lyons provides additional information on Paddys negotiations. He
claims that the offer to refinance the 180m of loans was at a
relatively minor single digit write down. A 9% write down would
equate to about 16m, but we dont know the single digit so it
might conceivably have been 1.8m, which is still significant to a
man who reportedly sought approval of what the Sunday Times last
week called an emergency loan from IBRC in October 2012 of GBP
5-5.9m (5.9-7m). The Sunday Times indicates that although the
facility was approved, it was never drawn down by Paddy who had
other options. So there are mixed messages from the incident with
suggestions that Paddy was in a corner financially, but at the same
time, Paddy had options and didnt need draw down an approved
loan.
Tom writes in the Sindo today that the refinancing offer was
provisionally agreed with IBRC in December 2012 but that the
Special Liquidator of IBRC, Kieran Wallace has subsequently been
holding firm to the position that refinancing be at 100% until such
time that the loans are independently valued and offered to the
market. Despite Minister Noonans refusal to confirm this was the
case two weeks ago, citing commercial confidentiality, I also
understand that it is KPMGs position that loans be refinanced at
100% only in the refinancing window which will expire shortly.
Eyebrows might be raised in some quarters at the claim in Toms
report that Paddys 36-7% stake in Coroin, the company that owns,
the three hotels might be worth 200m. Even after the rights issue
late last year, that looks ambitious for what remains, when you strip
away the razzamatazz surrounding three lumps of performing bricks
and mortar in central London, a heavily indebted company
producing relatively modest profits.

Does this response to a parliamentary question look iffy to you?

April 26, 2013 by namawinelake

Anglo and Irish Nationwide have cost us 34bn so far, so the nation has a very large stake

in ensuring that we get back as much of that money as possible now that the Irish Bank

Resolution Corporation is being liquidated. Unfortunately, a curtain is being drawn across

the liquidation and we should all be concerned at what is happening behind that curtain.

Finance minister Michael Noonan has been refusing to provide information about IBRC for

some time, he wouldnt give us a breakdown of its legal costs, in fact last year, he wouldnt

even confirm its total legal costs, he refuses to provide us with the accounts for IBRC for

the six months ending 31st December 2012 which means the most up-to-date accounts
are for the first six months of 2012 and we believe that IBRC now has about 16bn of

loans which it is presently valuing in advance of being offered for sale.

We know that right now, borrowers at IBRC are trying to refinance loans and we were

given to believe that borrowers refinancing their own loans would be paying IBRC 100% of

the amount due. If borrowers were unable to refinance their loans, they were to be offered

to the market and if they couldnt fetch a minimum independently-valued price, they were

to be transferred to NAMA. The Special Liquidator of IBRC is KPMG.

Denis OBrien and Paddy McKillen have recently been in the news because of injunctions

they have sought to prevent the Sunday Times publishing information about them. Both

are understood to be major IBRC borrowers with Paddys personal loans reported to be

300-370m and his corporate loans reported to be 550m and in April 2012, the Sunday

Independent reported that Denis OBriens loans at Anglo in 2009 were 833m but that

these had fallen to under 500m in April 2012.

This week in the Dail, Minister Noonan was asked to confirm the value of loans refinanced

to date since the IBRC liquidation announcement on 6th February 2013 and to assure us

that any loans refinanced were 100% repaid. The response from the Minister was that this

information is commercially sensitive! But why should repeating a previous statement that

loans would only be refinanced 100% be commercially sensitive unless borrowers were

refinancing loans at less than 100%? And why would an overall total of refinancing in the

75 days be commercially sensitive?

Does this look iffy to you?

The parliamentary question and response are here:

Deputy Pearse Doherty: To ask the Minister for Finance if he will confirm the value of

loans at Irish Bank Resolution Corporation that have been refinanced out of IBRC between

6 February 2013 to date; and if he will confirm that in all cases, the refinancing was for

100% of the outstanding amount on the loan inclusive of all amounts due.

Minister for Finance, Michael Noonan: I have been informed that the information

requested is commercially sensitive and it would not be appropriate for the Special

Liquidators to release such information.

Revealed: top 13
borrowers who owe Anglo
Builders, Secret Millionaire and O'Brien on
list

Former Anglo Irish boss David Drumm

Tom Lyons
April 15 2012

Information obtained by the Sunday Independent has revealed for the first
time the top 13 borrowers of the former Anglo Irish Bank, which is now called
IBRC.

The 13, which include developers such as Joe O'Reilly and Bernard
McNamara, owed a total of 13.9bn in March 2009, according to a
government review by accountants PWC, which was completed around May of
that year.
PWC told the Government that the bank's top borrowers would only cost the
State 629m and that the bank was "not unreasonable" in its prediction in
March 2009 that losses on the entire loan book would only be 4bn.

This figure has since ballooned to between 25bn and 30bn demonstrating
how badly the property crash caught out the then government and its many
advisers.

IBRC's biggest individual borrower by a long stretch is the family of Sean

Quinn, which then owed the State 2.2bn, and they are joined on the list by a
number of Ireland's best-known property developers.

Denis O'Brien, the telecoms entrepreneur, is listed as owing Anglo Irish Bank
833.8m on foot of personal and corporate loans just after the bank was
nationalised in 2009, making him its then sixth largest borrower.

Mr O'Brien has over the past three years reduced his borrowings to under
500m using cash generated by his Caribbean and Pacific-based mobile
phone empire.

Ireland's fourth richest man is understood to hope to reduce his borrowings to

300m some time this year as part of an extensive, agreed debt-repayment
plan. He has not missed an interest payment and is considered the bank's
best-performing large borrower.

Mr O'Brien's mobile phone company Digicel has debts to various banks of

billions but it also had revenues last year of $2.23bn and earnings of $954m
making it more than capable of servicing its debts.

Digicel raised $250m in February through a bond issue which was used to buy
a rival mobile phone company in Haiti for $97m. Some of this money,
combined with Digicel's strong cash generation, may have been used to reduce
Mr O'Brien's debts to IBRC and to fund his 45m acquisition of Siteserv, the
infrastructure and utilities support services business.

This purchase was controversial as the taxpayer took a 105m hit on Siteserv's
sale and there were allegations that the company might have been sold for
more to a trade buyer. This has been denied by Siteserv and its advisers.
advertisement
Advertisement 00:24
Mr O'Brien's borrowings from Anglo go back to when he founded 98FM, the
Dublin pop radio station, and continued as he bid for Ireland's second mobile
phone business. It lent to him when he set up Digicel in the Caribbean and
branched into golf and property investments.

The multibillionaire, who employs 2,000 people in Ireland, has defended his
friend Sean FitzPatrick, Anglo's former chairman, who has become a
scapegoat for Ireland's entire economic collapse. "Anglo Irish Bank has been
blamed for absolutely everything that has gone wrong in Irish banking. That is
both wrong and unfair," Mr O'Brien said in 2009.
Much of Mr O'Brien's and his fellow 12 borrowers' lending took place under
David Drumm, Mr FitzPatrick's successor as chief executive, with funding
from German and French money markets.

Denis O'Brien is the largest single shareholder in Independent News & Media,
the publisher of the Sunday Independent. He has lost an estimated 500m on
his 21.6 per cent stake in the media group.

A spokesperson for Mr O'Brien declined to comment.

http://www.independent.ie/business/irish/revealed-top-13-borrowers-
who-owe-anglo-26843161.html

Nothing learned of Cover Up Whitewash crimes or

Economic treason, and Conspiracy With
Politicians and Bankers, multinationals , all
Robbing, lying, Scourging, and Venturing like
Vultures of Irish Citizens Homes from under them
Seanie is celebrating. The rest of the country is left puzzled, perplexed and
piqued at the manner in which the criminal case against the former Anglo
Irish Bank chairman Sean FitzPatrick collapsed.

Mr FitzPatrick walked free from court yesterday morning after being formally
acquitted of misleading Anglo's auditors about millions of euro in loans.

The longest-running criminal trial in the history of the State ended at 10.50am
when Judge John Aylmer directed the jury to find Mr FitzPatrick not guilty on
all charges.

Sadly, the majority reaction to the end of the 127-day trial of former Anglo-
Irish bank chief Sean FitzPatrick was one of weariness. It wasn't only that this
was the second trial - the first collapsed in 2015 - or that the evidence was
complex or that there were extraordinary admissions on the part of the
prosecuting Office of the Director of Corporate Enforcement (ODCE) during
the trial about shredded documents, poor investigation techniques and the
treatment of witnesses. It was the fact that there seems to be a widely held
belief that the chances of successful prosecutions in this area by the State are
slim.

But there is a further dimension to the national exhaustion on this issue and
that concerns the question of what happens next. Jobs Minister Mary Mitchell
O'Connor has established an inquiry into this legal debacle, aspects of which
were described by the presiding judge as "extraordinary" and which, in the
words of the Taoiseach, leaves "the taxpayer... (taking) up all the tab, all the
costs involved here".
But will anyone be held accountable? We know of the mistakes made by the
chief investigator but this was wider than one individual. The Garda Siochana
were involved. The present director of corporate enforcement was involved, as
was his predecessor who got a sweetheart pension package. Prominent legal
and accountancy firms had a role.

Fine Gael's leadership contest offers change at the top of Government.

Last night's hustings between Leo Varadkar and Simon Coveney was an
invigorating affair. The candidates made their respective pitches to the party
grassroots at the Red Cow Inn in Dublin.

Although the vote may be academic due to the commitments of the party TDs,
Senators and MEPs, it is productive to hear adult debate about the political
choices facing the electorate.

Eddie Hobbss US partner firm in court accused of

Ponzi scheme of mini-Madoff proportions
May 11, 2013 by namawinelake

It should be said upfront that Eddie Hobbss Brendan Investments

Property Management has issued a statement here in which it states
that it is aware of legal action against a Michigan USA company
called Metro Property Group but stresses that there is no claim or
alleged impropriety being made against Brendan Investments.
Brendan Investments is jointly owned by Eddie Hobbs, Dermot
Flanagan, Hugh ONeill and Vincent Regan, with each being a
director. The company in its statement expresses confidence in the
US company now being sued.
This week in a Michigan District Court, a group of investors
represented by celebrity lawyer Deborah Schlussel has filed a case
alleging serious misconduct by a Michigan property company, Metro
Property Group and associated companies and individuals. The 116-
page complaint is here and it makes for fascinating reading. In brief,
a group of UK, Australian and Yemeni investors are claiming
shenanigans on the part of Metro and others and want their
investment back. Finance and economics pundit and TV personality
Eddie Hobbs (50) is dragged into it because his company Brendan
Investments has apparently teamed up partnered according to
the lawsuit claim with Metro for property investment, though
again, to stress, there is no allegation of any impropriety on the
part of Eddie or his company.
The lawsuit does however refer to Brendan Investments and
claims it has recently partnered with Metro with Brendan
Investments reportedly providing what is called an
infusion of 15m. A request for comment from Brendan
Investments was made before 5pm today, but was not responded to
at time of writing. There is comment reported in the old media from
Hugh ONeill, a director of Brendan, who says there are a number
of inaccurate references to Brendan Investments in the filing. Ms
Schlussel, the lawyer representing the plaintiffs, was asked for
information relating to the alleged 15m infusion by Eddies firm,
and again, there has not been any comment at time of writing.
So, whats the beef? It is alleged that Metro buy extremely run-
down houses in Detroit for between USD 500-5,000 and that they
sell them to investors for USD 40,000-50,000 promising impressive
returns of, for example, 16.9% per annum from rent alone, that the
buildings arent habitable, that Metro manage the properties and
after a few months, a tenant who may be a fake stops paying rent
and the investors are left with dud property and no income. It is
also alleged the buildings arent up to code and that investors
have been fined by state authorities because of the condition of the
properties. The complaint is written in colourful language and
paints the Metro Property Group as a bunch of villains, accusing it of
operating a Ponzi scheme reaching mini-Madoff proportions. It
even suggests that profits from the alleged scam may have ended
up with Iranian-backed Lebanese political and military group,
Hezbollah, a group regarded as terrorists in the US.
There is no filing in the case, on Metros part yet but newspaper
reporting carries comment from Metro that it says the action is
unfounded and that Metro is confident the case will be thrown out of
court. One of the defendants is a lawyer, Tarek Baydoun who has
provided comment to the media and says allegations of any
wrongdoing are completely ludicrous and Im firmly denying any
wrongdoing whatsoever The colourful language in the lawsuit
probably wont do much for its credibility over here where were
used to more sober allegations, but having said that, there are very
specific and presumably easy to prove or disprove allegations in
the lawsuit which paint a worrisome picture, and although there is
no allegation of impropriety whatsoever against Eddies Brendan
Investments, he may find himself fielding questions about the
safety of investments with this US company.
DEBBIE SCHLUSSEL:

Conservative political commentator, radio talk show host, columnist, and attorney
Schlussels unique expertise on radical Islam/Islamic terrorism and a host of other issues make her a
popular speaker and television and radio news talk show guest, both nationally & internationally. (Her
online fan club is the Internets second largest for a political personalitybehind only Ann Coulter.)
She is a University of Michigan graduate and holds both Law and MBA degrees from the University of
Wisconsin.

As both an attorney and a frequent New York Post and Jerusalem Post columnist, Schlussels
writings/commentary on radical Islam and her legal actions against radical Islamic parties have gotten a
great deal of attention and results. Columns shes written in the New York Post and appearances
shes made on OReilly Factor:

* caused FBI Director Robert Mueller to revoke an award to an American citizen who was a Popular
Front for the Liberation of Palestine terrorist and was involved with a group with Al-Qaeda and Hamas
ties (October 2003);

* caused Caribou Coffee to have its worst financial quarter ever, when Schlussel exposed the coffee
chains radical Islamic ownership and leadership of Sheikh Yusuf Al-Qaradawi (a supporter of homicide
bombings), and caused Starbucks to have its best quarter, when Schlussel exposed the radical Muslim
boycott of the Jewish-led chain (June/July 2002). Caribou Coffees then-CEO, Don Dempsey, credited
Schlussel with driving down sales and profits at his national coffee chain by calling him to the mat on
Qaradawi, and her work on this issue was cited in Newsweek and Business Forward magazines;

* exposed Detroits U.S. Attorney (the Justice Departments chief official in the heart of Islamic America),
his secret dealings with Hamas money-launderers and terrorists the U.S. government had fought to
deport (November 2003), and his efforts to overturn a guilty verdict against members of Detroits Al-
Qaeda sleeper cell and set them free (December 2003); and

* exposed billionaire hip-hop mogul Russell Simmons and his Hip-Hop Summit Action Networks
political/voter registration efforts on behalf of not only Louis Farrakhan and the Nation of Islam, but also
radical Palestinian and anti-Semitic, anti-Israel activists and groups.

In 2002, radical Muslim University of Michigan Regent Candidate, Ismael Ahmed, credited Schlussel for
his election defeatwhen she exposed his tax-funded Arab organizations financial and moral
support of Al-Qaeda, Hezbollah and Hamas terrorists.

In 1998, Schlussel went undercover, dressed as a religious Muslim woman, to the Islamic Center of
America, North Americas largest mosque, and reported, in The Detroit News on its support for terrorism,
and anti-American, anti-Semitic hate. She was interviewed and quoted by Rolling Stone about the
mosque and its radical imam, Hassan Qazwini, who is frequently consulted by President Bush and was
invited to his Crawford, Texas ranch. Qazwini was embarrassed by the radical speakers and anti-Semitic
hate he fostered in his mosque, and refused to address it in newspaper interviews. Schlussel was even
attacked for her work on terrorism by movie critic Roger Ebert in a 2005 syndicated movie review.

Schlussel, who speaks Hebrew, Arabic, French, and Russian, works closely with several Federal law
enforcement agencies, consulting on fighting the domestic War on Terrorism, and has provided them
with much useful information. She has gone undercover, infiltrating many Muslim organizations in the
Detroit area (the heart of Islamic America), exposing their radical nature and support for terrorism.
Schlussel continues to represent a very valuable Muslim confidential informant to several federal
government agencies, who has been responsible for putting hundreds with terrorism connections behind
bars. She also represented several whistleblowers who exposed terrorist operations now under
investigation.

Schlussel was also the first journalist/columnist to expose Indicted Islamic Jihad frontman, Sami Al-
Arians visits to the Bush White House and photos with President Bush, as well as his campaign
contributions to prominent U.S. Congressmen, including House International Relations Chairman Henry
Hyde. Al-Arian blamed Schlussel (because of her series of columns on Al-Arian in 2001) and FOX News
Channels Bill OReilly (on whose show Schlussel appeared, in October 2001, regarding Al-Arian) for his
dismissal from the University of South Florida.

As an attorney, Schlussel represented University of Michigan students in a lawsuit against the University
when it hosted Al-Arian as a speaker at a radical conference (a conference urging divestment from
Israel) on campus, exposing him and other radical speakers, and putting them and their supporters on
campus on the defensive.
You can read her popular twice-weekly online column, Debbie Does Politics, on the Internet, at
www.PoliticalUSA.com, where she is a Contributor/Columnist and her own website,
debbieschlussel.com. Schlussel is also a frequent New York Post, Jerusalem Post, and Vancouver
Province columnist. Her columns have often been read on the air by Rush Limbaugh, on whom she
broke the Monday Night Football story. Schlussels columns have also frequently appeared on the
Knight-Ridder Newswire and in several major newspapers, including The Washington Times, The New
York Post, The Jerusalem Post, The Detroit News, Detroit Free Press, Wisconsin State Journal. She has
also written columns for FOXNews.com.

Schlussel has often been quoted in quoted in The New York Times, Wall Street Journal, The Washington
Post, Newsweek, Rolling Stone, USA Today, New York Post, New York Daily News, New York Newsday,
Los Angeles Times, Chicago Tribune, Miami Herald, Sports Business Daily, The Washington Times,
Philadelphia Inquirer, Philadelphia Daily News, Minneapolis Star Tribune, Indianapolis Star, Seattle Post
Intelligencer, Kansas City Star, The Arizona Republic, San Jose Mercury News, The Austin Statesman,
The Wisconsin State Journal, Charlotte Observer, National Post of Canada, McLeans of Canada,
Daily Telegraph of London, The Guardian U.K., The Vancouver Province, The Jerusalem Post, The Age
of Australia, The Irish Times, The Irish Examiner, Associated Press, Knight-Ridder Wire, CanWest
Global Wire, Golf World, CNN.com, and many other mainstream press publications.

Attacked as Enemy #1 by Ms. Magazine (Women to Watch . . . and Watch Out For, February/March
2001), Schlussel is a frequent guest on ABCs Politically Incorrect with Bill Maher, CBS Early Show,
FOX News Channels OReilly Factor, Hannity & Colmes, FOX News Live, Beyond the News, and
Judith Regan Tonight, Comedy Centrals The Daily Show, MSNBCs Hardball with Chris Matthews,
Buchanan & Press, The Abrams Report with Dan Abrams, Scarborough Country, and MSNBC
Live, CNNs Crossfire, Talk Back Live and Weekend Wrap, C-SPANs Washington Journal,
ESPNs Outside the Lines, FOX Sports Nets Best Damn Sports Show Period, and the Nationally
Syndicated Americas Black Forum (hosted by NFL on FOXs James Brown).

The Hotline, politics and talk shows most influential newsletter and online website, called Schlussel a
rising GOP pundit, and The Hotlines influential former columnist (and current Hardball producer)
Howard Mortman wrote in his Extreme Mortman column that Schlussel is one of the fastest rising
young TV pundits today. The sites webcast of Schlussel was The Hotlines most viewed webcast ever.

In 2002-2003, Schlussel was the host of her own show, The Debbie Schlussel Show, on 97.1
FM, Detroits FM Talk Station (Infinity/CBS)#1 in its time-slot. A regular on the nationally syndicated
The Howard Stern Show (audience: 20 million every morning), Schlussel has frequently
appeared on National Public Radios All Things Considered, the Sean Hannity, Mitch
Albom, Larry Elder, and Tom Leykis nationally syndicated radio shows, ESPN Radio, Sporting News
Radio, and has been a frequent contributor to nationally syndicated FOX Sports Radio.

On Election Night 2000 through 2001, Schlussel was the political analyst for Detroits CBS and UPN
Television affiliates, and was a regular political commentator on the weekly series, Flashpoint,
on Detroits NBC affiliate, WDIV-TV. In the past, Schlussel was a daily political commentator on the
nationally syndicated (in 23 states) morning radio show, Mancows Morning Madhouse, a
top Chicago morning show, where she successfully predicted John McCains win of the Michigan
Republican Primary.

The granddaughter of immigrant Holocaust survivors, Schlussels mother was born in the former
Nazi concentration of Bergen Belsen in Germany, and her father is a Vietnam-era Army Veteran. A
frequent speaker at conservative, pro-Israel, and Jewish conferences, gatherings, college campuses,
and events around the U.S. Schlussel was a featured speaker at the 2004 National Board Meeting of
JINSA (Jewish Institute for National Security Affairs), 2004 National Conference of the Zionist
Organization of America (ZOA), 2001 and 2002 NRA Annual Meetings, 2002 Alpha Epsilon Pi (AEPi)
Fraternity National Convention, and 2000 Toward Tradition Conference.

In 1988, Schlussel was the youngest female and youngest Jewish delegate to the Republican National
Convention, a National Youth Vice Chairman of George H. W. Bushs 1988 Presidential campaign,
and a Youth Chairman of his 1989 Inauguration. An avid athlete who works out regularly, Schlussel won
several medals in tennis, track and cross country running in the 1984 Maccabi Games (the Junior
Jewish Olympics). In 1985, she was a finalist to represent the U.S. in tennis at the Maccabiah Games
(Jewish Olympics) in Israel.

Schlussel worked for Fred Barnes, Editor of The Weekly Standard Magazine, host of FOXs
Beltway Boys, and Mort Kondracke, also of the Beltway Boys when Barnes and
Kondracke were Senior Editors of The New Republic. Schlussel also worked in Washington for several
Congressmenincluding Rep. Phil Crane, Chairman of the powerful House Trade Subcommittee.

A lifelong conservative Republican activist, at the age of 21 and with all odds against her, Schlussel ran
for the Michigan House of Representatives from the suburban Detroit area and lost by just one vote, the
closest election in Michigan political history. In 1986-87, Schlussel was awarded the title of
Outstanding Teen Age Republican in the Nation and was honored by President Ronald Reagan.
You can often hear or read Schlussels insightful commentary on various political and sports-related
issues in many publications and on many major radio and television stations in many major-market
cities.

Schlussel has literally worked on campaigns for conservative Republican candidates since she was in
the sixth grade, when she worked on Ronald Reagans first campaign for President. A long-time
member of Mensa, the high IQ society, Schlussel was a National Merit Scholar Finalist. She is the only
female member of the Advisory Board of the Motor City Bowl, an NCAA Division I college football bowl
game, played at the Pontiac Silverdome and Ford Field and has been featured in both Whos
Who of Outstanding Young Americans and Whos Who of Executives.

Hobbs firm says it was

wrongly linked to alleged
Ponzi scheme

The Cork-born financial expert Eddie Hobbs

TV STAR Eddie Hobbs's property venture says it has been wrongly linked to
an alleged US "Ponzi scheme".

His Brendan Investments was named in court papers filed in Detroit in

relation to an alleged multi-million dollar property fraud.

But neither Eddie Hobbs nor Brendan Investments, where he is a director, are
being sued, and the Irish firm says its shareholders and clients are not affected
by the case.
"The directors of Brendan Investments Plc and the directors of Brendan
Investments Property Management Ltd have no cause for concern about the
interest of our shareholders or clients at this time," director Hugh O'Neill told
the Irish Independent. Mr O'Neill moved to clarify the situation after British
investor Kathryn Llewellyn-Jones and six others began legal action in a US
Federal Court.

The action is being taken against Detroit-based property firm Metro Property
Group and a number of connected companies and individuals, over alleged
property investment losses.

No findings have been made against Metro Property Group, which is expected
to lodge its own response to the claims made in the opening legal argument.

Papers filed in court include a suggestion that Metro Property established a

property joint venture with Brendan Investments last year.

But Mr O'Neill said that this is wrong. Brendan Investments has done
business with Metro Property, he said, and is involved in the Detroit property
market.

But he said that claims made about the extent of its involvement with Metro
are inaccurate.

"There are a number of inaccurate references to Brendan Investments in the

filing. It should be noted that Brendan Investments is not a party to these
proceedings," he said.

"Brendan Investments advises its own clients on property purchases in the US

and uses Metro Property Group as one of its service providers," he added.
advertisement
Advertisement 00:24
The case against the US firm has been taken by investors from the UK,
Australia and Yemen.

They say they bought investment property in Detroit from Metro Property
Group with the promise of high annual rent, based on the homes being
refurbished and rented to vetted tenants.

Those lucrative rentals never happened as planned, according to claims in the

court papers.

In her initial filing, lawyer Debbie Schlussel, representing the seven investors,
says the entire scheme was a scam, with tenancy agreements and even an
eviction faked to make it look like a better investment than it really was.

Bizarre

In a bizarre twist, Ms Schlussel even claims the case could have links to the
radical Lebanese militia group Hizbollah, citing the fact that Metro Property is
owned by a family of Lebanese-Americans.
Ms Schlussel is both an attorney and a high-profile commentator in the US
media, including as a pundit on Fox news show 'The O'Reilly Factor'.

She has a reputation for taking a pronounced anti-Islamic stance on the show.

http://www.independent.ie/business/irish/hobbs-firm-says-it-was-
wrongly-linked-to-alleged-ponzi-scheme-29253185.html

Hobbs backs service

company in US dispute

Eddie Hobbs

Donal O'Donovan
May 10 2013

A US company accused of running a 'Ponzi' scheme in the Detroit property

market says it is confident a case against it will be thrown out of court.

The company at the centre of the case, Detroit's Metro Property Group, is the
main US service company for Brendan Investments, the overseas property
venture launched by Eddie Hobbs.
Here, Brendan Investments has backed Metro in a note on its own website
reacting to news of the legal action.

"We have no reason to be concerned about the integrity of Metro, having

worked with the company on a daily basis over the past 18 months in
particular, but will always remain vigilant to protect the interests of our
clients/shareholders," the note said.

The Detroit property market is a significant focus for Brendan Investments.

No legal claims have been made against Brendan Investments.

In the US, Metro Property and a number of related US-based businesses and
individuals are being sued by a group of investors from the UK, Australia and
Yemen.

The investors say they bought investment property from Metro with the
promise of high annual rent, based on the homes being refurbished and rented
to vetted tenants.

The case was initiated in a US federal court last Friday.

Metro Property Group said it believed the legal action against it was
"unfounded" and that it is confident the case would be thrown out of Court.

However, one of the property owners taking the case said she believes that the
facts of the case are "overwhelming
http://www.independent.ie/irish-news/hobbs-backs-service-company-
in-us-dispute-29255487.html
Michigan District Court, a group of investors represented by
celebrity lawyer Deborah Schlussel has filed a case alleging serious
misconduct by a Michigan property company, Metro Property Group
and associated companies and individuals.
https://namawinelake.files.wordpress.com/2013/05/metropropertygr
oup.pdf
Goldman Sachs explains decision to revise dow n EUR/USD forecast

1. We are revising down our EUR/$ forecast to 1.29, 1.25 and 1.20 in 3, 6 and
12 months (from 1.35, 1.34 and 1.30 previously). We are also revising our
longer-term forecasts lower, bringing the end-2015 number down to 1.15
(from 1.27), that for end-2016 to 1.05 (from 1.23) and that for end-2017 to
1.00 (from 1.20). We switched from forecasting Euro strength to weakness in
April, when we revised our 12-month forecast from 1.40 to 1.30, and the
decline since then has been faster than we anticipated. Our latest forecast
change aims to signal that the current move lower in EUR/$ has staying
power and, in our view, is the beginning of a trend.
2. This forecast change is very much a restatement of our bullish Dollar view,
which we laid out in the April FX Analyst. Indeed, because we are keeping our
EUR/CHF, EUR/GBP, EUR/NOK and EUR/SEK forecasts unchanged, this
change is disproportionately important for our trade-weighted Dollar forecast.
When we first switched to forecasting Euro weakness in April, this implied a
6% appreciation of the trade-weighted Dollar against the G10 on a 12-month
horizon. Since then the Dollar has appreciated about 3%, i.e., about half that,
thanks in large part to the drop in EUR/$. Revising our 12-month EUR/$
forecast to 1.20 implies a trade-weighted appreciation of the Dollar against its
G10 peers of a further 6%. We think the USD still has room to catch up with
the 2-year rate differential, which is currently the most Dollar-supportive since
mid-2009 (Exhibit 1). In addition, changes to the Feds forward guidance in
coming months have the potential to move the rate differential further in
support of the Dollar (Exhibit 2), especially if US data continue their cyclical
outperformance versus the rest of the G10.

the internal Goldman Sachs note and rationale

3. We also believe that the dynamics of the Euro have fundamentally
changed. Prior to the ECBs latest round of easing in June, the foreign
exchange market was very sceptical that additional monetary stimulus could
be Euro-negative, since it would attract foreign inflows that would buoy the
single currency. That thinking has changed fundamentally, in our view, not
because foreign portfolio flows into the Euro area have abated (Exhibit 3), but
because domestics are increasingly sending portfolio flows out of the Euro
area, as ongoing ECB easing encourages a hunt for yield elsewhere (Exhibit
4). Our view is that these portfolio outflows have much greater potential to
grow than foreign flows into the Euro area, given that periphery risk premia
are already so compressed. Key pushbacks to our view are that: (i)
speculative short Euro positioning is already very stretched, with the CFTCs
CoT report for example putting positioning now on a par with 2011/12, when
concerns about a potential Euro area break-up were very real; and (ii) the
view that the ECB is de facto on hold, as it implements easing measures
announced in June. As we have argued in a recent FX Views, the large size of
foreign portfolio inflows into the Euro area over the last two years likely means
that the CoT report overstates speculative Euro shorts, which we see as
moderate in the scheme of things. As far as ECB policy goes, we think there is
counter to market consensus plenty of room for President Draghi to talk
the currency lower, which he notably started to do in the August press
conference when he said that fundamentals for a weaker exchange rate are
today much better than they were two or three months ago. Reinforcing his
comment, we estimate that the fair value for EUR/$ is around 1.19. Therefore,
even with the depreciation of the Euro in recent months, it is still expensive.
Because we believe the dynamics of the Euro have fundamentally changed
and because we expect cyclical outperformance of the US, a prolonged
period of Euro undervaluation can be expected and this is reflected in our
longer-term forecasts.
Goldman Sachs explains decision to revise down EUR/USD forecast
4. Our 12-month EUR/$ forecast of 1.20 implies a 5% weakening of the Euro
on a trade-weighted basis versus the G10. With our 12-month forecast for
EUR/GBP unchanged at 0.75, this amounts to a downgrade to our GBP/$
view, with the 12-month forecast now 1.60 (from 1.73 previously). As a result,
we are now expecting somewhat less appreciation of Sterling, with the trade-
weighted index rising well below 5% on a one-year horizon, down from 6%
earlier this year.

That particular breast cancer gene is Jewish in origin. It is an inherited gene defect in

those descended from Ashkenazi Jews.

http://theoncologist.alphamedpress.org/content/1/5/335.full

The Irish writer Emma Hannigan author of the book about her own breast cancer

experience Designer Genes is a case in point.

the latest from Detroit is the judge has ordered the claimants to show cause or for the

claimants to demonstrate the court has jurisdiction to hear the claims against all the

defendants, it appears to be a territorial matter, are they all US companies and citizens.

https://namawinelake.files.wordpress.com/2013/05/judgeshowcause.pdf

I dont think anyone in this part of the world cares if the claimants or respondents are

Arabs, Sheikhs, Hindu, Sikhs or Jesus freaks. The interest is the claim that Eddie Hobbss

company has an allegedly substantial relationship with a company against which serious

allegations have been made. The Detroit company and respondents that have provided

comment deny any wrongdoing and of course we are still awaiting a response from the

respondents to be filed.
As for civil preceding criminal process, I seem to remember Bernard Madoff was arrested

lickety-split when allegations emerged, and the civil claims followed suit. And since this

company is accused in the claim of operating a Ponzi scheme of mini-Madoff proportions

we might have expected a similar sequence.

Yay! Judge Costello is NOT

bankrupt. But since we still
don't have a register of
judges' interests, we don't
know how indebted she is.
Its 10 wks since public accounts committee published its
NAMA Project Eagle report. Heres progress update
(summary: there hasnt been any)
Fair play to @Aliceeire for asking obvious question last week - if NAMA lost
200m on Project Eagle how much is it losing on today's sales
Despite being his key demand in joining this govt, one year on, Shane Ross is
still appointing judges under "jaabs for the boys" scheme

No Anglo Irish Prosecution "for Several Years"

I got a polite letter back to my question about the approximate date that the ODCE
expects to finish the enquiry into Anglo Irish.
The Financial Regulator and the ODCE are working together on this. I mistakenly said
that the Fraud Squad were involved. So far as I know, the Garda investigation is separate.
I'll check this out.

I refer to your phonecall to this Office. With regard to the Anglo

investigation, we are legally precluded under section 17, Company Law
Enforcement Act 2001 from discussing the particular aspects of any
investigation.
All I can say is that it is proceeding satisfactorily. The
Director has indicated publicly that he hopes to conclude the investigation
in months rather than years. At the conclusion of our investigation, we
would hope to be in a position to forward a file to the Director of Public
Prosecutions. Ultimately it would be a decision for his office as to
whether any charges are pressed, and against whom.

I trust this is of some assistance.

Kind regards

Kevin Prendergast
Corporate Compliance Manager
Office of the Director of Corporate Enforcement
I'm considering my reply, but the interpretation of Section 17 seems a little circular to me.

17.(1) Information obtained by virtue of the performance by the Director of any of his or
her functions which has not otherwise come to the notice of the public, shall not be
disclosed, except in accordance with law, by any person, including
(a) the Director or a former Director,
(b) a professional or other adviser (including a former adviser) to the Director, and
(c) an officer or former officer of the Director.
(2) Notwithstanding subsection (1), information referred to in that subsection which, in the
opinion of the Director, may be required
(a) for a purpose or reason specified in subsection (1) of section 21 of the Act of 1990,
(b) for the performance by a competent authority (within the meaning of that section 21)
of a function or functions of the authority, or
(c) for the performance by the Director of a function or functions of the Director,
may be disclosed by or under the authority of the Director to the extent that, in the opinion
of the Director, is necessary for that purpose.
(3) Notwithstanding subsection (1), information which, in the opinion of the Director or an
officer of the Director, may relate to the commission of an ofence which is not an ofence
under the Companies Acts may be disclosed to any member of An Garda Sochna.
(4) A person who contravenes this section is guilty of an ofence.
This has been already addressed more than once, and two separate dates given.

Am I now to understand that Mr. Appleby was in breach of the Act when he gave out the
information

No Anglo Irish Prosecution "for Several Years"

In February there were press reports based on Garda leaks claiming that there would be
a number of arrests in relation to Anglo Irish Bank.
Several employees of Anglo Irish Bank are expected to be arrested before the end of
February as Garda continue their probe into the bank's activities. The investigation is
understood to be focusing on the alleged falsification of loan documents and a Garda
source said that the activities of a mid-single digit number of people are being
concentrated upon.

The Garda are likely to ask solicitors for copies of certain loan documentation in the
coming weeks so they can compare them with those held by the bank.

The bank is currently the subject of investigations by the Office of Director of Corporate
Enforcement (ODCE) with assistance from the fraud squad. The ODCE had no comment
last week. It is almost a year since the ODCE seized 20 large boxes of documents and
computer records from the bank's headquarters on St Stephen's Green.
There were a couple of brief arrests all right, including Sean Fitzpatrick's, but no
prosecutions and it appears very little progress is being made.

http://www.tribune.ie/business/artic...o-irish-staf/

http://www.rte.ie/business/2010/0702/anglo.html

Yesterday's Irish Times reported that the Director of the Corporate Enforcement (ODCE)
expects the investigation into Anglo Irish to go on for "a year or two".

This came out in the legal case in which the ODCE sought a waiver of claimed privilege
from Anglo Irish Bank so the Office could obtain records for the investigation

Mr Justice Peter Kelly said it was 'curious' that the ODCE had not formally requested the
bank to waive legal privilege until it was raised by the Court.
The judge refused an application for an extension of six months to the ODCE in relation
to the retention of material seized during the investigation. He said he would grant an
extension until November next and wants a progress report on what has 'already been a
lengthy investigation'.
Whatever about complexity of some of what they are looking at, it appears that there may
be ample evidence to hand to make a case.

Two weeks ago, exasperated with the slow progress of the investigation, Denis Casey
formerly of ILP published an afadavit on back to back loans with Anglo Irish which made
it clear that he had not been questioned by either the ODCE or the Garda.

http://www.google.ie/url?sa=t&source...1VbDPT6VvwlJdg

FED UP with waiting around for garda and the Office of the Director of Corporate
Enforcement (ODCE) to interview him about the flattering 7 billion circular deposits
between Irish Life Permanent and Anglo Irish Bank in the run-up to the latters
nationalisation, former ILP boss Denis Casey last week sought to move matters along.
The sworn statement he sent to the Garda and the ODCE 17 months into their
investigations provides an insight on relations between the two financial groups at the
time.
Only back in May, Paul Appleby, who has been Director of the ODCE for many years,
said that the Anglo Irish investigation would be completed in months rather than years.
What has changed from the time in May he launched the 2009 Annual Report to the time
of the Court Case last week, when presumably his representatives were speaking on
oath ?

http://www.irishtimes.com/newspaper/...271297971.html

I'm starting this thread so that we can follow the progress of the investigations by the
ODCE and the Fraud Squad.

There's Been No Anglo investigation" "Extensive Patronage of Anglo Irish Bank"

CF may have put his/her finger on something there. If Anglo had been allowed to fall over
then the bondholders might have dropped senior FF figures right in it if they were to make
a legal case that the bank was being mismanaged and seeking compensation.

Suddenly makes sense when you consider the extraordinary lengths cabinet figures are
going to to prevent Anglo's books being examined forensically.
And no Dail today, I love this part. They knew major **** was about to hit so they ran. the
plan is clearly to wait this one out and let the Goldfish efect kick in so when that Circus
resumes once again, it will be of the Front pages and of the Main news headline.

I wonder if they knew Casey was going to give a sworn statement like that? Has he
panicked, maybe realising that this could spell the end for that crew? Once FF are down,
its open season on the whole lot. An incoming Govt will have to appear tough on Crime
and tough the causes of Crime.

17 months and no one thought to ask him about a 7 billion. Either its the Keystone cops
looking into this or certain aspects of this investigation have been declared of-limits. I
know what I believe.

This is almost as conclusive as it gets. A major insider has exposed a Conspiracy that
directly implicates Govt depts and Senior civil servants. And it happened BEFORE
Lehmans went under. Every lie and excuse has been exposed. The words Patronage
and Systemic Support was used by Casey. Anglo and FF were tight, thats why they
were saved. Thats why we are paying for their mess. THAT IS THE ONLY REASON.

I'll say it again, if this doesnt get peoples blood up then nothing will. This is a crucial time
for us. It will be carte blanche for any Govt from now on if we let this slide.....
The first robot president won by exactly one vote. Ah, yes! John Quincy Adding Machine.
He struck a chord with the voters when he pledged not to go on a killing spree. But, like
most politicians he promised more than he could deliver
Lads, a fraud of this level is organised and approved by the highest level in the land, it all
did not happen by accident.

The truth behind this is all very simple, even since day 1 I've been saying it, the order for
all of this came from the very top. The guarantee is all part of the same scam. None of
this was about protecting the country, its all about protecting the doners and friends of FF.
It seems that the Honohan Report will nail that the Regulator and Central Bank were
behind this.

Do you have evidence that the Department of Finance and Minister were aware of this ?
Its an important question.
Having worked in many government departments I can tell you that civil servants do
nothing unless they are ordered to do something. It will become clear that both the
regulator and central bank knew, 2 diferent organisations, whats the common link? The
dept of finance. The order has to have come from in there.

Believe me, there is no way that somebody in either the regulator or central bank hatched
this scheme as why would they? They are all guaranteed a job and pension, the role of
those lads is to do as little as possible and keep a clean nose in the hope of a promotion
someday.

This was all ordered and controlled by the very highest level as it could not have
happened any other way.
Having worked in many government departments I can tell you that civil servants do
nothing unless they are ordered to do something. It will become clear that both the
regulator and central bank knew, 2 diferent organisations, whats the common link? The
dept of finance. The order has to have come from in there.

Believe me, there is no way that somebody in either the regulator or central bank hatched
this scheme as why would they? They are all guaranteed a job and pension, the role of
those lads is to do as little as possible and keep a clean nose in the hope of a promotion
someday.

This was all ordered and controlled by the very highest level as it could not have
happened any other way.
I would agree that initiative is not a big feature of the Civil Service. Where does a person
start if the Honohan Report doesn't deliver the goods? An FOI of all phone records at the
relevant times ?
Housing and Property Sector Chartpack May 2017
http://www.finance.gov.ie/sites/default/files/170525%20Housing%20and
%20Property%20Sector%20Chartpack%20May%202017.pdf

Iconic looks at
Landmark papers
Brian Carey
May 28 2017, 12:01am,
The Sunday Times

Malcolm Denmark, owner of Iconic Newspapers, is exploring the

purchase of regional Irish titles
TREVOR JONES

Iconic Newspapers, a media group owned by the

British businessman Malcolm Denmark, has held
talks about a possible purchase of the regional titles
owned by Landmark Media, publisher of the Irish
Examiner.
The approach from Iconic comes as The Irish Times
and Key Capital, owner of The Sunday Business
Post, are considering a possible bid for the Irish
Examiner.
Landmark, which is owned by Tom and Ted
Crosbie, is exploring possible disposals of media
assets as one of a number of options designed to
reduce its debt.
AIB, the groups banker, has appointed Declan
McDonald of PwC to advise on any possible debt
reduction proposals from management.
Landmark is believed to have debts of 21m.
https://www.thetimes.co.uk/edition/ireland/iconic-looks-at-landmark-
papers-7knzj7hwk
Is anyone buying why NAMA is deleting so many emails? Here's Noonan's
defence.
Ministers Noonan and Donohoe visit European
Investment Bank to explore new funding
opportunities for Irish infrastructure
24.05.17

Ministers Noonan and Donohoe visit European Investment

Bank to explore new funding opportunities for Irish
infrastructure
The European Investment Bank is expected to strengthen backing
for transport, education, housing, healthcare and small business
investment in Ireland, in addition to examining support for sectors
such as exporters and agriculture most afected by Brexit, following
the meeting of the Ireland-EIB Financing Group held at the
European Investment Bank headquarters in Luxembourg earlier
this week.
The two day visit to the European Investment Bank headquarters
by Ministers Noonan and Donohoe comes at a turning point for the
EU Banks engagement in Ireland. In recent years the EIB has
supported Irelands impressive recovery across key sectors, with
projects around the country, and we look forward to working
closely to ensure a strong future for the country by backing small
business and tackling infrastructure needs. The broad focus of the
EIBs involvement in Ireland would not have been possible without
the firm resolve of Minister Noonan to ensure that no opportunities
were lost to overcome challenges and unlock transformational new
investment. said Werner Hoyer, President of the European
Investment Bank.
Two days of discussions were led by Irish Finance Minister Michael
Noonan, Minister for Public Expenditure and Reform, Paschal
Donohoe, European Investment Bank President Werner Hoyer and
Vice President Andrew McDowell. The meeting brought together
senior officials from government, the EIBs financing and advisory
teams and the European Investment Fund.
Speaking in Luxembourg today Michael Noonan T.D., Minister for
Finance of Ireland and Governor of the European Investment Bank
said: The European Investment Bank has played a key role
supporting transformational investment across Ireland for more
than 40 years and both increased and broadened engagement in
recent challenging times. We are anxious to grow Irelands social
and economic infrastructure. We welcome clear progress to
explore possible access to EIB funding for projects that are
economically necessary. Continued discussions with the President
Hoyer and EIB colleagues, strengthened in recent months through
the appointment of Andrew McDowell as the first Irish Vice
President in 12 years, the new EIB Dublin office opened by the
Taoiseach in December and structured partnership through the
Ireland-EIB Financing Group is already unlocking support for new
investment.
I am confident that following todays meeting, exploratory talks will
take place with the EIB and the EIB will intensify its consideration
of how to support projects crucial for Irelands future such as social
housing, ports, community nursing homes, improvements to the
national road network, Dublin Metro North in the years ahead
added Minister Noonan.
The second meeting of the Ireland-EIB Financing Group, chaired
by Minister Noonan, discussed forthcoming capital infrastructure
projects that could benefit from financial and technical support from
the EIB, the expansion by EIB Group supports for lending to Irish
companies particularly in those sectors that may be afected by
Brexit, and options for the potential further use of Public-Private
Partnerships or concessions to finance infrastructure where this
may be appropriate.
The EIB supports crucial investment across the country and has
helped to attract financing from international investors for new
schools, roads and healthcare. I am confident that continued close
and excellent cooperation between Government Departments and
agencies and the EIB will ultimately deliver rewards for all
concerned. Earlier stage discussions on proposed projects in
development will help ensure that good projects can be identified
that will be eligible for EIB financing, subject to due diligence,
approval of the EIB shareholders and agreement of Government.
said Paschal Donohoe T.D., Minister for Public Expenditure and
Reform.
New financing possibilities for smaller and more challenging
projects under the EUR 315 billion Investment Plan for Europe,
expected financing for Irish enterprise by the European Investment
Fund and possible increased engagement to support investment in
sectors most vulnerable to UK withdrawal from the European
Union were also outlined.
Over the course of this year the EIB is able to ofer around EUR 1
billion of new financing for projects across Ireland, including urban
development, expanding port facilities, improving energy
distribution, upgrading university facilities and construction of new
social housing.
Recent renewed eforts by Irish partners and EIB colleagues are
ensuring that the EU Banks unique technical and financial
experience from successfully supporting infrastructure and
business investment across Europe and around the world can
benefit Irish projects. This weeks meeting will ensure even closer
cooperation to ensure that opportunities are not lost to unlock new
investment that improves lives and opportunities in the years
ahead. said Andrew McDowell, European Investment Bank Vice
President.
The Ireland-EIB Financing Group was established in December
2016, alongside the opening of the EIBs first permanent presence
in Ireland, to strengthen cooperation between the European
Investment Bank and Irish government departments and
stakeholders.
The European Investment Bank is Europes long-term lending
institution and owned directly by the 28 EU member states and the
worlds largest international public bank.
Over the last decade the EIB has provided more than EUR 6.8
billion for long-term investment across Ireland, including education,
energy, transport, social housing healthcare, agriculture and water
projects, as well as investment by small business and corporate
research and development.
The Ireland-EIB Financing Group discussions followed the annual
meeting of the Board of Governors of the European Investment
Bank and ECOFIN gathering of finance ministers in Brussels.
Background information:
The European Investment Bank (EIB) is the long-term lending
institution of the European Union owned by its Member States. It
makes long-term finance available for sound investment in order to
contribute towards EU policy goals.
Press contacts:
Department of Finance: David Byrne, Press Officer to the
Minister for Finance, pressoffice@finance.gov.ie, Tel.: +353 86 026
7978
Website: www.finance.gov.ie
Department of Public Expenditure and Reform: Deborah
Sweeney, Press Advisor to Minister Donohoe,
pressoffice@per.gov.ie, Tel.: +353 86 858 6878
Website: www.per.gov.ie
EIB: Richard Willis, r.willis@eib.org, Tel.: +352 4379 82155, +352
621 555 758
Website: www.eib.org/press Press Office: +352 4379 21000
press@eib.org
Pictures: images are available to download and use here (Credit
EIB)

Statement by Minister for Finance - Supreme Court

Judgement on Setanta Insurance Liquidation

25.05.17

Supreme Court Judgement

Law Society of Ireland v Motor Insurers' Bureau of Ireland (MIBI)

Setanta Insurance Liquidation

The Supreme Court has today made a decision in the case of Law Society of Ireland v
Motor Insurers' Bureau of Ireland (MIBI). The Court found that the Insurance
Compensation Fund is liable for claims of policyholders in cases where a motor insurance
company has become insolvent.

The context to this case is that when Setanta insurance collapsed it was anticipated that
the Insurance Compensation Fund (ICF) would compensate up to 65% of policyholders
losses and that the balance might be recovered from the liquidation process in
accordance with the rights of policyholders as unsecured creditors of the business.

Subsequently, the Law Society took a case arguing that the Motor Insurance Board of
Ireland (MIBI) should be liable for compensation rather than the ICF. This would have had
the efect that policyholders would have been covered for up to 100% compensation
rather than the 65% which would apply were the ICF to be liable. While 100%
compensation was desirable for Setanta policy holders there was legal uncertainty at the
time. In the event the case was won by the Law Society and this decision was upheld by
the High Court. However, this mornings decision has now overturned those earlier
decisions.

The position now is that we have clarity in respect to payments that are to be made to
Setanta policyholders. Based on todays decision the Insurance Compensation Fund will
now commence the process of making payments of 65% of the amount due from each
outstanding third party claim, or 825,000, whichever is the lesser. It is likely that in
respect of third party claimants, a significant proportion of the balance of a claim will be
met from the proceeds of the distribution of Setantas assets on completion of the
liquidation process.

Arising from the Supreme Court decision the Department of Finance is moving speedily
to bring certainty to the structure of the compensation framework in the future, particularly
in the event of a liquidation of an insurer that is providing motor insurance in Ireland. Draft
Heads of a Bill for amendments to the relevant Insurance Acts are expected to be brought
to Government by the Minister for Finance shortly. This legislation will reflect the
judgment of the Supreme Court today and the recently published Department of Finance
report on the reform of the Insurance Compensation Fund which will ensure 100% of third
party motor claims will be covered in future.

Thursday 25 MAY 2017

ENDS

For Further information:

David Byrne Press Officer pressofficer@finance.gov.ie 086 026 7978

http://www.finance.gov.ie/news-centre/press-releases/ministers-
noonan-and-donohoe-visit-european-investment-bank-explore-new

Minister Noonan welcomes CSO figures which show

employment gains of 68,600 in the first quarter of this
year

23.05.17

Minister Noonan welcomes CSO figures which show employment gains of 68,600 in the first
quarter of this year

Employment rose by 68,600 (3.5%) in the year to the first quarter of this year, the
strongest rate of annual increase since the pre-crisis era.

The level of employment is now at its highest since 2008. Full-time employment
increased by over 84,000 (5.5%) in the first quarter a very positive development.

The unemployment rate continues to fall, reaching 6.4% in April.

Todays (23rd May) data published by the CSO show that employment increased at an
annual rate of just under 69,000 in the first quarter of this year. Reacting to these very
strong figures whle attending meetings of the EcoFin council in Brussels, Minister for
Finance Michael Noonan T.D. stated:

The labour market has begun the year in a very positive manner and I welcome the very
strong employment growth that was recorded in the first quarter. Employment gains of
68,600 (3.5%) clearly demonstrate that economic growth is generating significant
dividends in the labour market. Indeed, it is noteworthy that full-time employment
increased by over 84,000 in the first quarter and I particularly welcome this development.

In parallel, unemployment continues to fall with the unemployment rate reaching 6.4% in
April.

The policies that have been implemented by the Government continue to bear fruit. The
objective in the months and years ahead is to enhance the resilience of the economy in
order to protect these gains and generate more jobs in the future.

ENDS

For Further information contact David Byrne Press Officer pressoffice@finance.gov.ie 086
026 7978

European Insurance Forum: 25th May 2017 - Croke

Park

25.05.17
Speech by Dr Paul Ryan

European Insurance Forum: 25th May 2017 - Croke Park

CHECK AGAINST DELIVERY

Opening Comments

Thank you Kevin for the welcome and introduction.

Good morning ladies and gentlemen, I am very pleased to be present this morning to
represent the Minister of State for Financial Services Eoghan Murphy at the opening of
EIF 2017 in the very impressive surroundings of Croke Park.

Unfortunately Minister Murphy was unable to be here this morning and he sends his
apologies to you the attendees of the Forum but also to the organisers, Insurance Ireland,
and the speakers through the day. He was very much looking forward to opening the
Forum and getting to meet some of you because of the significance of the event, but also
the very important theme of Change the Game.

As many of you may be aware, Minister Murphy has also had considerable engagement
with the Insurance Sector, both from a domestic and international perspective, and he is
fully aware of the importance of this financial service to Irelands financial services
ecosystem as a whole in terms of economic activity and employment, direct and indirect.

I would now like make some remarks on IFS2020 which is the Governments Strategy for
Ireland's International Financial. Specifically, how IFS2020 links to the EIF 2017 theme of
Change the Game.

IFS2020

The Government launched the International Financial Services 2020 Strategy (IFS2020)
in 2015 to address the ever-changing and increasingly competitive environment for
international financial services.

The IFS2020 Strategy takes a whole-of-Government approach with significant input from
industry to driving the development of Irelands international financial services sector.
The Strategy embraces all Government Departments and State Agencies with Quarterly
sign-of and reporting to the Cabinet and the Taoiseach/Prime Minister. Significantly,
IFS2020 is developed and implemented jointly between the public sector and industry
no one sector owns the Strategy instead, it belongs to everyone involved in Irelands
international financial services sector from the Government to Departments/Agencies,
industry representative bodies and, of course, individual businesses. I am pleases to say
that the insurance sector in its widest sense plays a key role in IFS2020.

In terms of vision, the Strategy highlights that we want Ireland to be recognised as a

global location of choice for specialised international financial services. This builds on
our strengths in talent, technology, innovation and excellent client service, while focusing
on capturing on new opportunities in a changing market and embracing the highest forms
of governance.

The key aim of IFS2020 is to increase the numbers employed in international financial
services by 30% or 10,000 net new jobs over the five years of the Strategy from 2015 to
2020. I am pleased to say that by end-2016 we have already seen a 13% increase in
those employed with significant levels of economic activity since the Strategy was
launched. Ireland is currently the 5th largest centre for IFS in the EU after London,
Paris, Frankfurt and Luxembourg. However, we want to be bigger and this is achievable!
Clearly the Strategy was devised long before Brexit, but because it is underpinned by
annual Action Plans it is designed to allow for flexibility so it can react to changes in the
international environment such as Brexit, Trump Presidency, etc.

May 2016

In May of 2016, as part of the new incoming Government Minister Eoghan Murphy
appointed Minister for Financial Services. In this role, he leads IFS2020 Strategy and
Chairs the various Committee charged with developing, implementing and overseeing
IFS20202 and specifically the annual Action Plans. The appointment was important
because for the first time, there is a Minister for specific sole responsibility for
international financial services previous incumbents (Simon Harris and Brian Hayes)
held responsibility for the OPW as well as MOS in the Dept of Finance and sister Dept of
Public Expenditure & Reform.

MOS Murphy has a role across the Dept. of Finance and Dept. of Public Expenditure &
Reform similar to predecessors but responsibilities for Financial Services is unique and a
sea-change for international financial services. He also has a very specific role in relation
to insurance.

At the same time, responsibility for IFS2020 and the underlying structures, including
supporting M/Murphy moved from the D/Taoiseach to D/Finance. This was an important
move because for the first time the development and implementation of IFS Strategy is
linked to policy development, domestically & EU, on the complete range of financial
services: banking, insurance, funds, payments, etc.

Clearly the main focus of work on IFS2020 since last May has been the potential impact
of Brexit on IFS: how to address the challenges and how to benefit from the
opportunities. One of the Governments four priorities for Brexit has been to minimise the
impact on trade and the economy IFS fits into this space. In December of 2016, an
IFS2020 Brexit Strategy was developed and subsequently approved by the Governments
Cabinet Committee on Brexit. This was subsequently launched in the context of the 2nd
European Financial Forum in Dublin Castle on 24th of January 2017 by Minister Murphy.

Action Plan 2017

In January Minister Murphy launched the IFS2020 Action Plan for 2017, this Action Plan
is the first since the UKs vote to leave the European Union and although IFS2020 is not a
Brexit strategy in itself, Brexit underpins the strategy and features in a number of specific
measures. The Action Plan is divided into two distinctive components. The first part is a
contextual piece with a strong focus on Brexit and how we approach the challenges from
an IFS perspective. This part also highlights the importance of communications between
government and industry and the continued promotion of the IFS Ireland brand and Team
Ireland identity.

The second part outlines the 40 individual actions that are to be implemented in 2017 and
the agencies, departments and organisations responsible for their delivery. Each of the
measures is linked to one of the four strategic priorities of IFS2020.
The 2017 Action Plan is a clear framework to maximise opportunities that may arise in
the international financial services sector from Brexit. The plan is fully integrated into the
wider cross-Government Brexit contingency planning that deals with challenges and
opportunities facing IFS, especially ensuring that our ofering remains competitive for
firms looking to locate here from the UK and those who are currently based outside
Europe but seeking an EU location.

IFS2020 is a dynamic and evolving strategy and the structures provide the toolkit to react
to domestic and international challenges and opportunities that will arise over the coming
months and years.

International Outreach

There has been significant international outreach by Government and State Agencies
with the help of industry organisations and individual businesses over the past twelve
months. A key part of the IFS2020 Strategy has been a focus on ensuring efective
messaging of Irelands financial services ofering. In January 2016, the IFS Ireland
Banner Brand and accompanying website IFSIreland were launched. The Brand is
designed for use by both private and public sector stakeholders when promoting Ireland
overseas. We are now able to go out into the market with a single Team Ireland identity,
under a single banner brand a brand that stands for innovation and specialisation.

Upon the appointment of Minister Murphy he established a Communications Subgroup as

part of the implementation framework. This group works on the continued coordination of
messaging and promotional material in order to ensure Irelands financial services sector
is presented in the best way possible globally.

Minister Murphy has travelled extensively to promote Irelands IFS ofering. In late-2016
he launched the IFS Ireland brand in key markets such as China, Singapore, Japan, UK
and the US. As part of these visits he met with both IDA and Enterprise Ireland client
firms and also with government officials, state agencies, regulators, the media and think
thanks.

Regions

One area we have been keen to highlight through engagement with IFS firms is that
Irelands IFS sector is not just a Dublin-based industry, although it began in Dublins
docklands in the late 1980s it is now nationwide in 2017. In fact 30% of the people
employed in the sector in Ireland are based outside of Dublin in our regional towns and
cities and this is a percentage we are keen to see increase towards a target of 50%.
Firms based in our regional locations report greater staf retention and lower operating
costs as key reasons for locating outside Dublin and given the international accessibility
we enjoy through Cork, Shannon and Dublin airports our regional centres have good
access to the global financial centres such as London and New York.

From an insurance perspective we are pleased to see the likes of AIG in Cork, MetLife in
Galway and Zurich in Wexford and as part of IFS2020 we will hopefully see more
insurance firms opting for our regional cities.

Education and Skills Measures

IFS2020 also places a strong emphasis on education and improving Irelands ofering in
terms of skills and talent. One education measure that I should note here today is the
insurance apprenticeships ofered by the Insurance Institute of Ireland. The
apprenticeship is a earn and learn style programme whereby successful applicants both
earn a salary while working towards a level 8 degree over three years and is designed as
a method to attract new entrants into an industry who may not have considered it before.

As part of IFS2020 we have also seen the development of apprenticeships across other
subsectors of financial services such as accounting, FinTech, and data analytics in
addition to insurance. These apprenticeships are designed for a broad range of
applicants from school leavers to those looking for a career change.

Diversity and Inclusion

A second area that we decided to incorporate into IFS2020 for 2017 is the area of
diversity and inclusion. I must commend Insurance Ireland on their Year of Inclusion for
2017. We have now committed to providing quarterly updates on the promotion of
diversity measures across the sector in the strategys quarterly progress reports for 2017.
Insurance Irelands commitment to a year of inclusion for 2017 is the kind of leadership in
this area we are looking to see from across financial services and I hope to see other
representative bodies dedicating the time and resources to promoting diverse and
inclusive working environments.

EFF 2018

In January Minister Murphy hosted the European Financial Forum in Dublin Castle, which
is a key deliverable as part of the Strategy. The 2017 event was the second EFF and built
upon the success of the inaugural forum in January of 2016. The 2017 forum was
attended by approximately 650 delegates, representing over 300 organisations from
around the world.

Keynote speakers included Jin Liqun (President of the Asia Infrastructure Investment
Bank), Phillip Hildebrand (Vice-Chairman of Blackrock) and Noreen Doyle (Vice-Chair of
the Board of Directors of Credit Suisse), to name just a few.

Given the significant continued success of the forum I am pleased to confirm the
European Financial Forum 2018 will return to Dublin Castle on the 31 January 2018.
Although still a growing event the European Financial Forum has gone from strength to
strength since the inaugural 2016 and we are sure the event will continue to be a success
and become a flagship event in the international financial services calendar and I hope to
see some of you in Dublin Castle next January. We hope to develop more parallel
sessions and are keen to discuss potential topics for these sessions and, of course, the
Forum itself with industry including the insurance sector.

Setanta Insurance

I would like to take the opportunity this morning to update you on the position in relation
to Setanta Insurance Company (in Liquidation). Setanta Insurance was placed into
liquidation by the Malta Financial Services Authority in April 2014 and this liquidation is
being carried out under Maltese law.
Progress in the liquidation to date has been delayed due to court proceedings in the case
of Law Society of Ireland v the Motor Insurers' Bureau of Ireland (MIBI). The focus of the
court action is to determine whether it is the Insurance Compensation Fund (ICF) or the
MIBI which is responsible for the payment of third party claims.

The Supreme Court heard the case in October 2016 and the judgment is due to be
delivered later this morning.

It does not make sense to speculate on the outcome of the judgement at this late stage,
as most people here today on whom it will impact are aware of the consequences of
whatever decision is made. However, wherever the responsibility for meeting the Setanta
third party claims falls, it is imperative that every efort is made to ensure that payment is
made as quickly as possible. It is however recognised that because of the complex
nature of this issue and the fact that due process needs to be followed including fully
verifying the claims, some cases will take additional time to conclude.

It is also appreciated that going forward industry are seeking certainty about the extent of
any future exposure they may have in the event of another motor insurer insolvency. The
Minister for Finance is conscious of this and has indicated a willingness to address this
issue in the proposed insurance compensation fund legislation which is currently being
prepared.

Solvency II Directive:

The Solvency II Directive, which has been transposed into Irish law and came into efect
on 1st January 2016, represents a substantial overhaul of European insurance
regulation. This framework puts in place a stronger EU-wide requirements on capital
adequacy and risk management for insurers with the key aims of increasing policyholder
protection and better ensuring the financial soundness of insurance undertakings over
time.

The Solvency II regime presents challenges to the insurance industry but I am aware that
industry here have been well prepared for some time and are responding positively to
them. These challenges include the change of emphasis of the regulatory regime to a
system more focused on risk management including the need for firms to define their own
risk profile, the need to appropriately implement key functions, and the increased
reporting requirements.

The end result of improving risk management, developing sustainable business models
and more consistent supervisory approaches across Member States should benefit all
stakeholders over time. Based on the indications available as at March 2017, the first full
year of Solvency II application has been largely successful in contributing to the financial
stability and integration objective of the European Union.

As you will be aware, the review of the Solvency II regime is now underway and is due to
be completed by 2021. The review of the Solvency Capital Requirement (SCR) standard
formula, the first phase of the overall review, has commenced and this should be
completed by the European Commission before December 2018. The objective of the
review process in the context of the SCR standard formula is to achieve a proportionate
and technically robust, risk-sensitive and consistent supervisory regime for the insurance
sector. EIOPA, which has until February 2018 to provide its technical advice to the
Commission, is particularly interested in proposals to ensure greater simplicity and
proportionality whilst reflecting the risk-sensitivity of the system and avoiding pro-
cyclicality. EIOPA has not proposed policy options but these will be addressed during
roundtable discussions with relevant stakeholders organised in the course of 2017.

The Department of Finance continues to liaise with both the Central Bank and the
insurance industry with regards to the impact and implementation of the transposed
Directive.

Conclusion

Id like to conclude by once again in thanking you for the opportunity to speak here today
and I hope I have given you a flavour of the ongoing work and commitment Minister of
State Murphy and the Government has in terms of promoting Ireland as a location for
continued high quality financial services investment. It only remains for me to wish you
all the very best for the remainder of the day and I hope that it is a very useful and
productive event for all participants.

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Speech by Minister Murphy - The Financial Services and

Pensions Ombudsman Bill

25.05.17

The Financial Services and Pensions Ombudsman Bill

Second Stage Speech

Minister of State Eoghan Murphy TD

25th May 2017

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I welcome the opportunity today to debate the legislation concerning the Financial
Services Ombudsman and the Pensions Ombudsman. As you are aware, the
Government published the Bill entitled Financial Services and Pensions Ombudsman Bill
2017 on the 10th of May, and todays Second Stage debate on the general principles of
the Bill is a positive step in the progress of this significant piece of legislation which deals
with a number of important issues for consumers of financial services and pensions.
Introduction

The Bill will amend, update, and consolidate into one Bill all of the legislation
underpinning the Financial Services Ombudsman and the Pensions Ombudsman with the
aim of forming a unitary structure and amalgamating the Financial Services Ombudsman
and the Pensions Ombudsman into the Financial Services and Pensions Ombudsman.

The Government decision to amalgamate both offices follows the recommendation of a

Critical Review[1] under the Public Service Reform Plan. In the drafting of this Bill, a full
Regulatory Impact Analysis (RIA) was undertaken by my Department, including a public
consultation process, along with a series of consultations with relevant stakeholders (both
public and industry representatives).

The Financial Services Ombudsman is an independent statutory officer who deals with
unresolved complaints from consumers about their dealings with regulated financial
service providers.

The statutory role of the Pensions Ombudsman is to investigate complaints of financial

loss due to maladministration and disputes of fact or law in relation to occupational
pension schemes, trust retirement annuity contracts and personal retirement savings
accounts. The Pensions Ombudsman performs these functions independently and acts
as an impartial adjudicator.

Given the fact that financial investments and pensions are increasingly becoming inter-
mingled, the merging of these two Offices will provide a simpler process for consumers
who will have a one-stop-shop for complaints in relation to the a wide range of products
falling within the two general areas.

Since the Government agreement on the outline Heads of Bill, both Offices have been
physically merged in one location on Lincoln Place. In addition to this, recent legislative
changes under the Social Welfare Pensions Act 2015 have enabled the appointment of
the Financial Services Ombudsman Mr. Ger Deering as Pensions Ombudsman in May of
2016

The detailed Heads of Bill underwent pre-legislative scrutiny on 27th October of 2016,
along with a Sinn Feins Private Members Bill on the Financial Services Ombudsman
entitled: Central Bank and Financial Services Authority of Ireland (Amendment) Bill 2014.
I welcome the Scrutiny Report of the Joint Committee which has provided a useful
service to this House. I am particularly glad that the Report recognises the improvements
for consumers that the Governments legislation will bring to financial investments and
pensions.

The Report, in its analysis of the General Scheme of the Bill, recommended changes in
the Heads that would bring further clarity to its proposals. I have reviewed the
Committees recommendations, and I can assure that these most of these
recommendations have been addressed in the published Bill, where it was feasible to do
so. I look forward to discussing the detailed provisions at Committee stage at a later date.

Main Changes

In drafting this legislation, the Department of Finance reviewed the legislation

underpinning the Pensions Ombudsman (Pensions Act 1990, inserted by the Pensions
(Amendment) Act 2002) and the Financial Services Ombudsman (Part 7 of the Central
Bank Act 1942) as inserted by the Central Bank and Financial Services Authority of
Ireland Act 2004).

The published Bill is more comprehensive and provides for a number of improvements to
the existing legislation. Firstly, it amalgamates the Offices of the Financial Services
Ombudsman and Pensions Ombudsman; secondly, and most importantly, it consolidates
and updates the legislation, including the extension of the time limits for complaints.

I will now outline the key features of the Bill for Deputies.

Part 1: Preliminary and General

The first part of the Bill deals with preliminary matters. As is the normal practice, this part
contains definitions of terms used throughout the Bill. An important definition is that of a
financial services consumer which is defined as meaning in general terms individuals,
small businesses (sole traders, partnerships and companies), charities, clubs, and so on.
Small businesses are those businesses whose annual turnover is 3 million or less.

This part of the Bill also sets out the power of the Minister for Finance to make
Regulations, and what type of Regulations he can make including the ability to specify
additional classes of persons who may make a complaint to the Ombudsman. Section 3
sets out the new dual funding structure of the merged Body. The existing levy on financial
services industry is maintained, but it should be noted that monies will continue to be
received from the Oireachtas insofar as they relate to the investigation of complaints
regarding pension providers which reflects the current funding of the Pensions
Ombudsman.

Finally, Section 5 refers to Schedule 1 which lists all the legislation and statutory
instruments to be repealed and revoked on the relevant commencement date. We are
repealing the Central Bank Act 1942 Part VIII (seven) and Part XI (eleven) the Pensions
Act 1990 which set up the respective Ombudsman offices originally.

Part 2: Establishment of Office of Ombudsman and Deputy Ombudsman

Part 2 of the Bill establishes the Office of the Financial Services and Pensions
Ombudsman. Part 2 also gives the Minister for Finance the power, by order, to appoint a
day as the Establishment Day for the Office of the Financial Services and Pensions
Ombudsman.
This Part provides that the power to appoint the Ombudsman and Deputy Ombudsman
will be the responsibility of the Minister for Finance (having consulted with the Minister for
Social Protection) from a list of candidates following a Public Appointments Service
competition.

This Part also sets out the functions of the Ombudsman and Deputy Ombudsman, the
terms of their employment, and the ability to remove the Ombudsman from office on
certain grounds. Terms and conditions of the staf of the Office, including consultants
and/or advisors working in the Office are also dealt with under this Part it covers their
obligation to deal with information confidentially.

Section 18 outlines the power of the Ombudsman to exchange information with the
Central Bank of Ireland or the Pensions Authority as appropriate, which is a very
important provision that we have reproduced from the original legislation. Finally,

Part 2 of this Bill sets out the accounting and reporting requirements of the Office,
including the accountability of the Ombudsman to the Public Accounts Committees and
other Oireachtas Committees.

Part 3: Dissolutions and Transfers of Functions to Financial Services and Pensions

Ombudsman

Part 3 of the Bill sets out the functions that are to be dissolved or transferred to the new
bodies, including transitional provisions pertaining to staf, accounts, and the Council.

Specifically, Chapter 1 dissolves the former Financial Services Ombudsmans Bureau,

the Financial Services Ombudsman Council and the Office of the Pensions Ombudsman.
All of the functions that were vested in the Financial Services Ombudsman or the
Pensions Ombudsman are, on and from the Establishment Day, to be transferred to the
Ombudsman.

All reference in enactments to the Financial Services Ombudsman Bureau and the Office
of the Pensions Ombudsman are to be taken as references to the new Office of the
Financial Services and Pensions Ombudsman upon Establishment Day. All land and
other property, and rights and liabilities, and records that belonged to any of the dissolved
Bodies are to be transferred to the Office under Chapter 1 of this Part.

Chapter 2 transfers staf and superannuation from the dissolved Bodies to the new Office.
Finally, Chapter 3 deals with the final accounts and Annual Reports of the dissolved
Bodies.

Part 4: Financial Services and Pensions Ombudsman Council

Part 4 establishes the Financial Services and Pensions Ombudsman Council.

To reflect the changing workload of the Council, the Bill reduces the membership of the
Council from a maximum of 10 to a maximum of 7 members. One member is required to
have pensions experience, while one will need to have financial services knowledge, and
now at least two members must have knowledge of consumer protection or consumer
issues. The members are appointed by the Minister from a short list of more than three
persons following a competition by the Public Appointments Service. One member with
pensions experience will be nominated for appointment by the Minister for Social
Protection. The Minister for Finance shall appoint a Chairperson from among members
of the Council.

In the amalgamation of the two Bodies, the Minister for Finance has maintained the
prominent oversight role the Council plays, but he has made some changes.

He proposes to remove the Regulation-making power of the Council with respect to how
the Ombudsman operates. Instead, the Minister, rather than the Council will have the
Regulation-making power under Section 4 relating to the operation of the Office of the
Ombudsman. This can be done either on the Ministers own initiative or at the request of
the Ombudsman, having consulted with the Council and the Ombudsman.

The Council will continue to keep the efficiency and efectiveness of the Office under
review, but it will no longer be responsible for the appointment of the Ombudsman or
Deputy Ombudsman.

The Council will maintain its role in approving the draft Statement of Accounts prepared
by the Ombudsman, before they are to be submitted to the Minister for Finance.

A notable change in the legislation is the new funding structure of the amalgamated Body
(part-industry for financial services complaints and part-Exchequer for pension
complaints). For this reason, the Council will continue to determine and prescribe by
Regulation, the levies or fees to be paid to the Ombudsman by financial services
providers. Further provisions in relation to the operation of the Council are set out in
Schedule 2.

Part 5: Complaints to the Ombudsman

Part 5 of the Bill outlines the type of complaints that can be made to the Ombudsman and
the format in which they should be submitted.

In relation to the conduct of a financial service provider, a person can complain about:

the provision of financial services;

an ofer of financial services; or

failure to provide financial services.

In relation to the conduct of a pension provider, a person can complain about financial
loss or a dispute in relation to pensions.
Part 5 also sets out some practical arrangements such as, the provision for a complaint to
be continued on the death of a complainant (this is a new provision for financial services
complaints).

Section 47 outlines the powers of the Ombudsman in relation to an investigation and

Section 48 sets out transitional provisions for the investigation of complaints that were
made before Establishment Day.

Section 50 sets out rules in relation to the option of staying of Court proceedings where a
complaint is being investigated by the Ombudsman.

Part 6: Complaints Procedure

Part 6 outlines the complaints procedure that consumers will be subject to once the Bill is
enacted, including the most significant change in the legislation. This change relates to
an extension to the time limits applicable for complaints to the Ombudsman which I will
outline in a moment. Section 50 outlines the matters within jurisdiction of the
Ombudsman.

It is worth noting that there have been some significant changes under this Part of the
Bill. For example, it contains provisions for the Ombudsman to adopt rules of procedure
regarding the dealing with complaints, and to publish these rules. These changes have
been proposed with the intention of providing more clarity and certainty for the consumer
about the process for dealing with complaints and it will also help them to understand
what to expect when the Ombudsman is dealing with a complaint.

The Bill outlines the steps involved in the resolution of a complaint ranging from internal
dispute resolution to investigation of the complaint by the Ombudsman. There are related
provisions relating to mediation and adjudication.

The Minister for Finance is retaining the requirement for consumers to first try to resolve
the matter with the internal dispute process of the provider of the financial/pension
product. However, the Minister is now allowing the Ombudsman to waive the internal
dispute process in certain cases such as when the Ombudsman determines a complaint
is of such importance as to warrant waiving the process. This also means that in cases
where the provider may be seen to frustrate the process, the Ombudsman can intervene.

I would like to emphasise the fact that the Bill continues to provide for mediation as a tool
for the Ombudsman in cases where he sees fit, while at the same time strengthening the
role of the Ombudsman in promoting engagement in the mediation process.

A key feature of the new legislation is the increased communication between the
Ombudsman and complainants. Under the proposed provisions, once the Ombudsman
has considered the complaint, he may now issue a Preliminary Decision which will
indicate the potential decision to be made and the evidence considered in arriving at this.
This ensures that all parties to the complaint are aware of developments in a complaint
and they have to opportunity to ensure that the Ombudsman has all evidence necessary
for making a final decision.

Part 6 also sets out the redress available to consumers. The Ombudsman can direct a
financial service provider to pay compensation of up to 250,000 and he can also direct
other measures, for example, rectification. Such rectification can be very significant as it
can involve putting a person back to the position in which they previously were before the
complaint arose. Part 6 also details the manner in which the Ombudsman can publicise
decisions which is a new measure to increase transparency for consumers and providers.

Part 6 (Section 51): Time Limits

Section 51 sets out the new time limits applicable to complaints made to the
Ombudsman. The current legislation prohibits the Financial Services Ombudsman from
examining any aspect of a complaint where the conduct being complained of occurred
more than six years from receipt of the complaint in his Office.

Extensive research was undertaken by my Department into designing the most

appropriate time limit achievable within the law that would provide the necessary
protection to consumers over the longer term. In this regard, my Department engaged
with stakeholders, analysed views received from the public consultation process, and
sought advices from the Office of the Attorney General on this issue.

The Bill extends the time limits for complaints in relation to certain long term financial
services to the same time limit that currently applies to pension products, namely six
years from date of the conduct complained of or three years from the date the
complainant knew/ought reasonably to have known about the conduct.

The rationale for this expansion is that those who have long-term financial services, may
not become aware of an event to be complained of, until their service or product matures
and they should have some access to the Ombudsman at that stage. Long term financial
services are, in basic terms, services that exceed five years and one month.

The new time limits for long-term financial services will apply to complaints made to the
Ombudsman about conduct that occurred during or after 2002 and the service in which
complaint is about must not have expired or otherwise been terminated more than six
years before the date of complaint. This 15 year period (i.e. from 2002 to 2017) is
inspired by the long stop recommended by the Law Reform Commission who were
considering a new discoverability time limit for personal injury claims. The introduction of
a long stop prevents the opening-up of stale cases and gives some certainty to the
parties as to the cut of time for bringing actions

My Bill also provides an extra discretion to the Ombudsman to extend the time limit that
would benefit consumers of long-term financial services and pensions in cases where it is
just and reasonable, similar to the provision that currently exists for pensions complaints.

Part 7: Appeals and Application to Court

Part 7 sets out the rules relating to appealing decisions of the Ombudsman to the Courts
and Court applications. The steps involved in appealing a decision of the Ombudsman to
the High Court on a point of law is detailed under this part. Furthermore, Part 7 deals with
the ability of the Circuit Court to enforce a direction of the Ombudsman and the ability of
the Ombudsman to refer a question of law to the High Court. Finally, Part 7 includes
transitional provisions for appeals in the Court system of complaints already in the system
before establishment day.

Part 8: Other Transitional Provisions

Part 8 outlines some other transitional provisions for the saving of regulations made by
the former Council and the transfer of functions from the Financial Services Ombudsman
Bureau to the Office of the Financial Services and Pensions Ombudsman.

Part 9: Consequential Amendments

Part 9 contains consequential drafting amendments to the Central Bank Act 1942 and the
Freedom of Information Act 2014.

Part 10: Miscellaneous

Part 10 contains miscellaneous provisions such as the ability for the Ombudsman to
cooperate and exchange information with the Central Bank of Ireland, the Registrar of
Credit Unions and the Pensions Authority. Part 10 also empowers the Financial Services
and Pensions Ombudsman to partake in the Memorandum of Understanding on a
Cross-border out of-court Complaints Network for Financial Services in the European
Economic Area (EEA).

Schedule 1 sets out all the repeals and revocations that must be made to Acts of the
Oireachtas and Statutory Instruments on foot of this new legislation.

Schedule 2 sets out the operational matters in relation to the Financial Services and
Pensions Ombudsman Council.

Conclusion

To summarise, this Financial Services and Pensions Ombudsman Bill will amend,
update, and consolidate into one Bill all of the legislation underpinning the Financial
Services Ombudsman and the Pensions Ombudsman. It has the aim of forming a unitary
structure amalgamating the Financial Services Ombudsman and the Pensions
Ombudsman into the Financial Services and Pensions Ombudsman (FSPO).

The measures I have outlined will strengthen the functions of the new Ombudsman, and
improve the experience for consumers of both pensions and financial services.

As you are aware, there are many consumers for whom this Bill is a pressing issue, in
particular the proposed change to the rules regarding the time period in which the
Ombudsman can investigate complaints. With this in mind, I hope that this Bill can be
sent forward to Committee Stage, where the Bill can be discussed in more detail.

END

[1] The Public Service Reform Plan Critical Review - Integration of the Regulatory
Function of the Pensions Board with the Central Bank and Amalgamation of the Pensions
Ombudsman with the Financial Services Ombudsman, April 2013

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Minister Noonan - Asian Infrastructure Investment
Bank Bill, 2017 Second Stage Speech

18.05.17
Asian Infrastructure Investment Bank Bill, 2017

Second Stage Speech

Dil ireann

Introduction

The Asian Infrastructure Investment Bank Bill, if approved by the Oireachtas, will facilitate
Irelands future membership of the Asian Infrastructure Investment Bank (AIIB). It will
provide for the approval of the Articles of Agreement of the AIIB and for payments to be
made to the Bank.

Irelands Application for Membership of the AIIB

The AIIB is a new multilateral financial institution which came into operation in January
2016. Its objectives are to foster economic development and regional integration in Asia,
primarily through investment in infrastructure. The Bank has 57 Founding Members,
including fourteen EU Member States, and is based in Beijing, with China playing a
leading role in its establishment.

Following Government approval in December 2015, the Department of Finance

commenced formal negotiations with the AIIB Secretariat on Irelands potential
membership of the Bank. Ireland made a formal application for membership of the Bank
in January 2017. On the 23rd of March 2017, the AIIB approved the applications of 13
new prospective members, including Ireland.

Irelands AIIB membership would require ratification of an international agreement

represented by the Articles of Agreement of the AIIB. Ireland would also have obligations
as regards capital contributions. Article 29.5 of the Constitution provides, among other
things, that the State shall not be bound by any international agreement involving a charge
upon public funds unless the terms of the agreement shall have been approved by Dil
ireann. Passage of the proposed Bill by the Oireachtas, and its enactment by the
President, would confirm such approval. Similar requirements applied when Ireland joined
other International Financial Institutions such as the World Bank and, most recently, in
2006 the Asian Development Bank.

Rationale for Membership

The rationale for Irelands membership of the AIIB includes geopolitical and economic
considerations, in particular trade relations with China and the wider Asian economy.
Over the past 15 years, Ireland has increased its engagement with Asia, and particularly
China, the world's second largest economy, in a broad number of areas. Bilateral trade
has grown in significance and, in 2015, Ireland's total trade with China was worth over
11 billion. There are significant benefits to strong and open ties with China. Becoming a
member of the AIIB would reflect and reinforce the growing relationship between the two
countries.

AIIB membership will also complement Irelands international development policy, which
aims to support sustainable development and inclusive economic growth. The Banks
governance standards and performance since its establishment in January 2016
reinforce the perception that it will be an efective driver of development. It has worked
very closely with other International Financial Institutions such as the IMF, World Bank,
European Investment Bank and Asian Development Bank to adopt their best practices in
relation to governance, organisational practices and project appraisal.

On the other hand, to not join the AIIB would raise questions about Irelands position on
Chinas increasing integration into the global economy and international financial
architecture. Such a decision could impair Irelands growing bilateral relationship with
China, with potential adverse efects for Irish businesses.

About the AIIB

The AIIB was founded to address the significant infrastructure gap in Asia. Research from
the Asian Development Bank estimates that Asia will need to invest 1.7 trillion US dollars
per year in infrastructure between now and 2030. This significant demand for investment
cannot be met from other channels of finance such as existing International Financial
Institutions, Governments or the private sector in these Asian countries.

The Bank was declared open for business on 16 January 2016. It approved its first loans
on 24 June 2016. The authorised capital stock of the Bank is US$100 billion, with US$20
billion in paid-in capital. The AIIB will follow the model of other Multilateral Development
Banks, raising funds on international markets at competitive terms. Since it came into
operation, the Bank has approved over US$2 billion in loans.

Governance Structures

The AIIB currently has 57 founding members which are divided into regional members
(that is, Asian Countries) and non-regional members (mainly European, but also including
Australia and New Zealand). Regional Countries will hold 75 percent of the Banks
shareholding and thus contribute 75 percent of the capital of $100 billion, with non-
regional Countries holding 25 percent of Banks shareholding and contributing $25 billion
in capital.

China is the largest shareholder in the Bank with 26 per cent of its voting power. India is
the second largest shareholder with 8 per cent of total voting power, while Germany is
currently the largest non-regional shareholder with 6 per cent of total voting power.

Each member country is represented on the Board of Governors and nominates a

Governor and an Alternate Governor. As is the norm for membership of International
Financial Institutions, it is envisaged that the Minister for Finance would be Governor for
Ireland at the Bank.

The principal office of the Bank is located in Beijing, China. Unlike other International
Financial Institutions, there are no representatives from member states based in Beijing,
although the permanent staf may include people from member states.

The Board of Governors meets formally once a year for the AIIBs Annual Meeting. They
elect a President for a term of five years. One or more Vice Presidents are appointed by
the Board of Directors on the recommendation of the President. The current President is
Mr. Jin Liqun, a Chinese national and former Vice President of the Asian Development
Bank, whose current term will expire in 2021.

The Board of Governors also elect the twelve members of the Board of Directors, who
are responsible for the direction of the general operations of the Bank. Nine Directors are
elected by regional members, and three others are elected by non-regional members.
Members are arranged in Constituencies headed by one of the twelve Directors. Upon
joining, Ireland would be part of the euro area Constituency and be represented by the
Director for the euro area.

Operations and Standards

To date the Bank has approved thirteen projects in eight diferent countries, with focuses
spanning from transport to energy to urban development. Some examples of projects the
AIIB has financed to date include:

a 216.5 million dollar loan for a National Slum Upgrading Project in Indonesia, to
be co-financed with the World Bank;

a 100 million dollar loan to finance a motorway project in Pakistan, co-financed

with the Asian Development Bank and the United Kingdoms Department for
International Development;

A 600 million dollar loan to support the Trans Anatolian Natural Gas Pipeline in
Azerbaijan, co-financed with a number of development banks.

EU Member States have used their influence to ensure that standards of other Multilateral
Development Banks are mirrored at the AIIB in terms of investments, environmental and
social safeguards, institutional governance and organisational matters. The Bank has
been very receptive to discussions on standards and safeguards. It has sought to adopt
best practices. The mandate of the Bank and the work undertaken by it to-date on
governance structures and safeguards covering investment, environmental and social
issues demonstrate that it will complement existing International Financial Institutions.

Indeed, the majority of AIIB projects have been co-financed with other development
banks, including the World Bank, the Asian Development Bank and the European Bank
for Reconstruction and Development. This demonstrates the standard of project which is
being financed by the AIIB and its intent to cooperate constructively with other
International Financial Institutions. Both the President of the World Bank Group, Mr Jim
Yong Kim, and the President of the AIIB, Mr Jim Liqun, have recognized the importance
of ensuring a partnership approach, as is evidenced by the memorandum of
understanding recently co-signed by both Presidents at the 2017 IMF/World Bank Spring
Meetings to strengthen cooperation and knowledge sharing between both institutions.

Cost Implications

The expected cost of membership for Ireland will be a total of approximately 25 million,
spread over a five year period, depending on prevailing exchange rates.

Ireland has been ofered 1,313 shares in the Bank. This figure is based on the remaining
unallocated capital in the Bank and Irelands relative GDP share among non-regional
countries applying for membership in this round of applicants.

In capital terms, this equates to a total subscription of approximately 125 million split
between 80% callable capital and 20% paid in. In practice this would result in the
subscription of approximately 25 million, to which I have already referred.

In general, callable capital represents the capital which a member Country would be
liable for if the Institution encountered acute financial distress, while paid-in capital is the
amount which a member actually contributes to the Institution in normal circumstances.
Based on Irelands membership of existing International Financial Institutions, and the
performance of those Institutions to date, the probability of the callable capital being
called upon is negligible.

A contribution of approximately 25m would also be broadly in line with our contribution
to other International Financial Institutions, relative to their size. For instance, in the World
Bank, where taking into account the Banks global role, Ireland has paid-in capital of
approximately 49m, and in the Asian Development Bank, where Ireland has paid-in
capital of approximately 15m.

Irelands capital contribution to the AIIB would be sourced from the Central Fund as is the
normal practice for International Financial Institutions. This has been provided for in the
legislation.

It is also expected that Irelands contributions to the AIIB would count toward the UN
target of 0.7 per cent of GNP for overseas development assistance (ODA). The
Programme for Government commits to continue eforts to achieve this target as
economic circumstances allow. While it remains to be formally decided whether
contributions to the AIIB will count toward ODA, indications are positive that this will be
the case. In December 2016, the Secretariat responsible for this issue in the OECD
recommended that the AIIB be included on its list of ODA-eligible organisations. Once
details are finalised, AIIB members would be able to count their AIIB contributions, or a
significant proportion of them, towards their individual ODA targets

I will now turn to the specific provisions of the four sections of the Bill

Section 1 sets out the definitions used in this Bill.

Section 2 provides for the approval of the terms of Agreement for membership of the
Asian Infrastructure Investment Bank. The Articles of Agreement establishing the Asian
Infrastructure Investment Bank are set out in a Schedule to the Bill.

Section 3 sets out the financial and other provisions associated with joining the Bank.

Section 4 deals with the short title of the Bill. It also provides for the commencement of
the provisions in Section 3 on the day when the State becomes a member of the AIIB.

I will conclude by saying that I strongly recommend Irelands membership of the AIIB. The
Bank will make a significant contribution to economic prosperity and regional integration
in Asia. Irelands active participation in the AIIB will further strengthen our ties to this
region, with expected benefits in terms of trade links and possible procurement
opportunities. Our membership would be in line with Irelands strong commitment to
international development and I am confident that the AIIB will be an efective channel in
this regard.

I recommend the Bill to the House.

http://www.finance.gov.ie/news-centre/speeches/current-
minister/minister-noonan-asian-infrastructure-investment-bank-bill-
2017
Criminal Justice (Terrorist Offences) Act 2005 (Section 42)
(Restrictive Measures Concerning Certain Persons Aand Entities
Associated With The ISIL (DAESH) AND AL- QAIDA Organisations)
(N0.3) Regulations 2017
http://www.finance.gov.ie/sites/default/files/SI%20209%20of
%202017%20Al%20Qaida%20%28No.3%29.pdf
European Union (Restrictive Measures Concerning Yemen)
Regulations 2017
http://www.finance.gov.ie/sites/default/files/SI%20210%20of
%202017%20Yemen.pdf

Betting Tax Review

19.05.17

Betting Tax Review

During the Finance Bill 2016 debate in the Oireachtas, Minister of State Eoghan Murphy
gave a commitment that betting duty would be examined as part of the Tax Strategy
Group process in 2017. This reviews the roll out of the betting regime to remote
bookmakers and betting exchanges in 2015, as well as looking at the likely impact of an
increase in the rates of betting duty on

1. Exchequer revenues including potential for unlicensed operators,

2. the bookmaking industry including the remote sector.

As part of this review your views are requested on the current system of taxation,
specifically:

The inclusion of the remote sector into the betting regime under the Betting
(Amendment) Act 2015;

Is the existing model of turnover tax, with diferent approach to betting

exchanges, the most appropriate for the industry at this time?

What is an appropriate level of betting tax and the equivalent tax on betting
exchanges commissions?

What would be the impact of a move from taxing the bookmaker to taxing the
punter i.e. either a percentage tax on all bets placed but paid by the punter rather
than the bookmaker, or a (higher) percentage on winnings paid by the punter?

In order to meet the timeframe of the TSG process, submissions are requested not later
than close of business on 19 June 2017. Submissions should be forwarded
to betting@finance.gov.ie If you believe that a meeting would be useful, please indicate
this when returning your submission.

Please note that all submissions made to the Department of Finance may be subject to a
request for release pursuant to the Freedom of Information Act 2014. Responses to the
consultation may also be published on the website of the Department of Finance.

If you have any queries please do not hesitate to contact Vivienne Behan at 353 (0)
761007661 or at the above e-mail address.

Indirect Tax Policy

Department of Finance

IDA Ireland welcomes Legal &

General Investment
Managements decision to
locate operations in Ireland
26th May 2017

IDA Ireland welcomes Legal & General Investment Management's

(LGIM) decision to choose Ireland, subject to regulatory approval, for
part of their investment management operations. The decision is
part of LGIMs strategy to ensure it can continue to serve its
customers, both in Ireland and across the EU, after the UK leaves
the European Union.

Established in 1836, Legal & General Group is a leading provider of

insurance, savings and investment management products, and
headquartered in London. LGIM is a top 10 global asset manager
with assets under management of 1tn (at 31 December 2016).

Minister for Jobs, Enterprise and Innovation, Mary Mitchell

O'Connor TD said "This decision by Legal and General to establish
this operation in Dublin is very welcome news and illustrates the
strength of Ireland's position in attracting significant companies in
the Financial Services Sector. The Government has been making
strenuous efforts to ensure that we have the right conditions in
place in Ireland, especially regarding skills availability, to attract the
knowledge based sectors and announcements like this one today
are a vindication of these efforts. We represent a very attractive
base in the Eurozone for these companies and we will continue to
pursue new investors in this sector".

Following todays Board decision, Eoghan Murphy TD, Minister of

State for Financial Services noted: Todays decision reflects the
increasing importance of Ireland as a gateway for the Single Market.
Legal & General, one of Europes largest asset managers and a
major global investor, will be a welcome addition to Irelands
thriving Asset Management community. I look forward to working
with Legal & General to advance the Governments IFS 2020
strategic ambition to position Ireland as the location of choice for
specialisation and innovation in Financial Services.

Martin Shanahan, CEO IDA Ireland said: We are delighted that

Legal and Generals Board has chosen Ireland as a place to service
their European Union customers. This is yet another very important
signal to the market that financial services companies can come to
Ireland quickly and service their European customers, with minimum
disruption to their business.

This is another vote of confidence in Ireland and its expanding

international financial services sector, and shows that our track
record, pro-business environment, highly skilled talented workforce
and an unwavering commitment to the European single market
continues to appeal to investors.
Ireland has the right mix of regulation, skills, experience and office
space to make us a very logical place for financial services to
locate.

Ends

For further information, please contact:

Press Office, Department of Jobs, Enterprise and Innovation ph.

6312200 or press.office@djei.ie

OpenJaw Technologies sets out

expansion plans which will see the
company double its workforce,
following TravelSky Technology
acquisition

PRESS RELEASE

24 MAY 2017

OpenJaw Technologies sets out expansion

plans which will see the company double
its workforce, following TravelSky
Technology acquisition
DUBLIN, Ireland May 24 2017 Irish travel software
company and wholly owned subsidiary of Chinese
technology firm TravelSky, OpenJaw Technologies,
(www.openjawtech.com) announced today, plans to
double its global workforce from 230 to 450 employees in
the next three years, with at least 50 of the jobs being
located at the companys offices in Dublin and Galway.
The jobs announcement was made at OpenJaws travel
retailing summit at Dublins Mansion House, a two day
event attended by executives from the worlds leading
airlines and travel companies, IDA Ireland, the Chinese
Ambassador to Ireland, H.E. Dr. Yue Xiaoyong, Larry
Liang, Chairman of the Board of Directors of OpenJaw
and General Manager of TravelSky R&D Division as well
as other industry experts in travel retailing and
technology.

OpenJaw delivers eCommerce Technology to the worlds

leading travel brands and supports them become online
retailers, using OpenJaws specialist software. The
company is headquartered in Dublin on Ormond Quay and
following its acquisition by TravelSky last year, OpenJaw
became the only travel tech company to have unique and
proprietary access to the Chinese market. OpenJaws
software also facilitates many of the worlds leading
customer loyalty programmes.
From startup, (OpenJaw was set up by three Irish
entrepreneurs in a one roomed office in 2002), to a
business processing an annual gross transaction value of
$2bn on the companys platform, the company has taken
advantage of one of the fastest growing trends travel
retail and one of the fastest growth markets, China.

OpenJaw has over 30 customers globally, including;

British Airways, Iberia, Cathay Pacific, Hainan Airlines,
Four Seasons Hotels, Avis Budget Europe and Air Miles.
The company services its global customer base from
regional offices in Galway, Krakow, Madrid and Hong
Kong. A major R&D Centre in Dalian, China will
commence operations in June of this year. Todays
announcement and expansion project is supported by the
Department of Jobs and Innovation through IDA Ireland.
Welcoming the announcement Minister for Jobs,
Enterprise and Innovation Mary Mitchell OConnor TD said
"It is a tremendous achievement to be doubling your global
workforce so soon after your acquisition by TravelSky last
year and I particularly welcome the additional 50 jobs
being created in Dublin and Galway as part of the global
expansion. It is a huge endorsement of your product that
30 global travel companies have already become
customers. I wish you every success with your expansion
both here and In China and I look forward to watching you
grow in the coming years."

Kieron Branagan, CEO, OpenJaw Technologies, said:

Our intention to expand our workforce globally, is directly
linked to the tremendous growth we are experiencing in
Asia, especially in the domestic Chinese market. Our
relationship with TravelSky has given us proprietary
access to the Chinese market and were already live with
four Chinese carriers and we have another four in
development. Ireland is a great location from which to
attract key talent into our business and we are opening a
large R&D centre in Dalian, China. As part of this
recruitment campaign, we are looking for a wide range of
talent including; travel tech specialists and software
engineers.
Speaking at the announcement, Martin Shanahan, Chief
Executive of IDA Ireland, said: The decision by OpenJaw
to expand here in Ireland and internationally, is a major
endorsement of Ireland as a leading location for global
software companies. OpenJaw will act as a reference
company of IDA Ireland when encouraging Chinese FDI
into Ireland.
Recruitment for the positions has already started and
OpenJaw intends to fulfil up to half of the roles by the end
of 2018, before completing the recruitment drive by the
end of 2019. For details of how to apply for these
positions, please visit
http://careers.openjawtech.com/jobs/.

The theme for OpenJaws Global Travel Summit is

Re:Inventing Retail and sets out the opportunity for travel
companies in online retailing, using cutting edge software
technology. Speakers at the two day Summit, include;
Professor David Rogers of Colombia University and best-
selling author of the The Digital Transformation Playbook,
Meg Elzea, Industry Manager, Global Travel at Google,
Catherine Fitzgerald, Global Client Partner (Travel) at
Facebook, International Air Transport Association, Cathay
Pacific, Skyscanner, Hainan Airlines and Chinese online
behemoth, CTrip.
http://www.idaireland.com/newsroom/openjaw-technologies-
sets/index.xml
Economic Letter- A review of residential mortgage lending in 2017
https://www.centralbank.ie/docs/default-
source/publications/economic-letters/economic-letter-vol-2017-
no6.pdf
200417 Final Crowdfunding Consultation Paper
http://www.finance.gov.ie/sites/default/files/200417%20Final
%20Crowdfunding%20Consultation%20Paper.pdf
Expressions of Interest Sought for the Appointment of a Director
(Consumer Interest) to the Board of the ICCL
http://www.finance.gov.ie/sites/default/files/170518_iccl_director_inf
o_booklet_final.pdf

Statement by Michael Noonan, T.D., Minister for Finance

18.05.17

Statement by Michael Noonan, T.D., Minister for Finance

18 May 2017

Following the Taoiseachs announcement yesterday, I want to state that I do not wish to
be considered for Cabinet by his successor, whoever that may be.

I have been honoured to serve as Minister for Finance since March 2011 and have
introduced 6 annual budgets and one supplementary budget.

I believe now is a good time for a new Finance Minister to take up office. Ireland is the
fastest growing economy in Europe, the budget is almost balanced and we are on the
cusp of full employment.

I will continue to carry out my duties as Minister for Finance until a successor is
appointed.

I will not be seeking re-election to Dil ireann at the next General Election. It has been
a privilege to represent the people of Limerick since I was first elected in 1981 and I look
forward to continuing to do so until an election is called.

ENDS

for further information

David Byrne Press Officer david.byrne@finance.gov.ie 086 026 7978

Closing statement by Minister Eoghan Murphy TD

for Dil ireann Private Members Motion proposed
by Fianna Fil Business and Motor Insurance Costs

17.05.17
CHECK AGAINST DELIVERY
Closing statement for Dil ireann Private Members Motion proposed by Fianna Fil

Business and Motor Insurance Costs

Eoghan Murphy TD, Minister of State for Financial Services

17 May 2017

Ceann Comhairle,

Introduction

I would like to thank Fianna Fil for tabling their motion on business and motor insurance
costs. This is an important issue because of its impact on society as a whole.
Throughout the country people have been paying significantly higher premiums for
insuring their motor vehicles and businesses, and many are struggling to aford what is,
after all, an essential requirement for day-to-day living.

As indicated in the opening statement, while the Government does not dispute that the
increase in the cost of insurance has had a negative impact on consumers and
businesses, it disagrees with the thrust of the motion that the Government has done
nothing to try and address the underlying causes of this problem, and that is why it is
opposing the motion.

Progress on the implementation of the Recommendations

Key to the Governments commitment on this issue is the establishment of the Cost of
Insurance Working Group, of which I am the Chair. Much work has been done by this
Group which culminated in the publication of the Report on the Cost of Motor Insurance
in January. This report contains 33 recommendations and 71 action points all of which
have been assigned to relevant bodies for completion by specific dates. Therefore there
is a rigour to this project which puts pressure on all parties to deliver on time.

A key part of the work to date has been the interaction of the Working Group with the
Joint Committee on Finance, Public Expenditure and Reform and Taoiseach. In this
forum, I have listened closely to the views of the Committee and its chair John
McGuinness TD, and considered its recommendations on motor insurance many of which
were in line with the emerging recommendations published by the Department of Finance
in October and which were further elaborated upon in the Report on the Cost of Motor
Insurance. Therefore, while there are some diferences in emphasis between the
respective reports, there are much more similarities than diferences.

It is recognised by the Government that implementing the cost of motor insurance report
quickly is very important. In this regard, therefore the first quarterly report of Cost of
Insurance Working Group provides a comprehensive update on progress to date and
reasons where delays exist.

However it should be noted that throughout this process, there has been recognition by
all sides that there is no single policy or legislative silver bullet to immediately stem or
reverse premium price rises. Therefore while the most recent CSO figures suggest that
motor premium levels have stabilised to some degree, the Government is not taking this
position for granted and also recognises that the levels at which motor insurance
premiums are at is still too high. Therefore the implementation between now and the end
of 2018 of all the reports recommendations are critical to introducing fairer premiums for
consumers.

The motion correctly points out that 10 actions were scheduled for completion in Q1
2017. Seven of these 10 actions were fully completed, while two of the remaining
measures are due to be completed shortly, while the third measure is ongoing. It is
important to recognise that substantial work has also been undertaken in respect of a
number of the other actions, including the further eight which are classified as ongoing
in the Action Plan.

As mentioned earlier there has been some criticism of the timeframes for the delivery of
some of the key recommendations of the Report. However as explained earlier on issues
such as the work of the Personal Injuries Commission and the development of a National
Claims Information Database, these unfortunately take time. Lots of details need to be
considered and the appropriate level of consultation needs to take place in order to get
things right. In addition, legislation will be required.

Other recommendations rely on the resources of the relevant stakeholders, in particular

where several recommendations have been addressed to them. With 71 actions, it would
simply be impracticable to be able to work on all of the recommendations at the same
time.

I will ensure that the Working Group continues to monitor the implementation of the
recommendations by the relevant Government Departments and Agencies and keep the
Oireachtas appraised of progress. In this regard, I am due to provide the Committee with
another update on 1 June.

Tackling the Rising Cost of Business Insurance (Employer and Public Liability Insurance)

The CSO does not publish data for business insurance, and it is not possible for me
therefore to give definitive official figures for price increases or decreases. Nevertheless,
the Government recognises that the motion makes a number of valid points with regard to
the rising cost of business insurance. It is important to recognise that motor was the
priority for the Working Group and the Oireachtas Committee given its impact on so many
people. Almost half of all non-life insurance business written in 2015 was motor
insurance. This is where the focus of our resources must continue to be, while looking
now at EL & PL as we have been since January.

It is also important to note that reforms being made to the insurance sector will address
motor directly, but will also read across to EL & PL, for example the Personal Injuries
Commission. So it is wrong to suggest that nothing is being done for EL & PL at the
moment.

There is little acknowledgement that the Cost of Insurance Working Group commenced
the second phase of its work in January to look at public and employers liability
insurance in parallel with implementing the motor insurance recommendations.

The Working Group has met a range of stakeholders and the following broad themes
have emerged:
 Significant increase in costs for both PL and EL for all businesses

Public liability seems to be of greater concern to most groups we have talked to

Increasing trend towards taking on a greater excess to keep premiums down (as
the motion mentions also)

Related to this an increase in number of business self insuring

Lack of competition

Frustration with inconsistency of awards

Huge legal and business costs associated with challenging claims through court
process

Companies not being given sufficient credit for improving health and safety
standards

Statute of limitations concerns

Insurers settling without proper notification or consultation

Seeking legislative limits on book of quantum

Some businesses feel they are victims of fraudulent and exaggerated claims

Role of PIAB should be developed

The Working Group is currently considering these matters and will consider what
recommendations it can make to address them. It must be recognised however that there
are some very complex legal and constitutional issues which would need to be addressed
if we are to make progress on these points to the satisfaction of the business sector.

I also note that the motion refers to the practice of insurance companies using non-
disclosures where they would have had no bearing on the decision by an insurer to price
cover at a particular level. I agree with the motion that it is unacceptable that they be used
for the sole purpose of avoiding payment. I will raise this matter with industry.

As outlined in the opening address, my current intention is to publish an addendum to the

motor report to cover EL and PL. However I am reviewing this at present, as there might
be additional elements that we also want to introduce to the motor section, where there
are strong linkages between it and EL and PL. Furthermore, we are considering the need
to address quite fundamental constitutional issues, [such as the statute of limitations,
capping of awards,] on which serious legal consideration will be necessary.

A final report may not be ready until September, but this does not mean that work on EL
& PL reforms will only commence then. Im hopeful that we can have clarity around the
potential new measures in July. When I am certain of our planned direction of travel I will
publish it and appear before the Oireachtas committee to explain our thinking.

Conclusion

In conclusion, for the reasons outlined this evening, the Government does not accept the
assertions made in the motion and must oppose it.

In our view, little recognition has been given to the significant level of work done to date
by of the Cost of Insurance Working Group in relation to addressing the cost of insurance
issue. There is also no acknowledgement that the satisfactory resolution of this issue is a
complex one which involves addressing an array of disparate issues which will inevitably
take some time. However that being said the Government believes that cooperation and
commitment between all bodies and individuals with a stake in a stable and accessible
insurance market will result in fairer premiums for consumers over the course of the
implementation of the Cost of Insurance Working Group Report.

ENDS

17 May 2017

CHECK AGAINST DELIVERY

http://www.finance.gov.ie/news-centre/speeches/current-
minister/closing-statement-minister-eoghan-murphy-td-dil-ireann

Minister Noonan makes it easier to invest in Irelands

growing businesses by extending an exemption on Stamp
Duty

17.05.17

Minister Noonan makes it easier to invest in Irelands growing businesses by extending an

exemption on Stamp Duty

The Minister for Finance, Michael Noonan T.D., today has signed an order to provide an
exemption from Stamp Duty on transfers of shares in Irish companies admitted to the
Enterprise Securities Market (ESM) of the Irish Stock Exchange. The measure will come
into efect on 5th June 2017.

Speaking earlier today the Minister for Finance, Michael Noonan T.D. said:

The purpose of the measure is to encourage more investors to back Irish Small and
Medium Enterprises, increasing the supply of equity available to SMEs for growth and job
creation. It is also our intention that the measure will encourage entrepreneurs and
growing businesses to use public equity to raise finances. The cost of the exemptions is
estimated at 5m in a full year.
The Enterprise Securities Market (ESM) is the Irish Stock Exchange's (ISE) market for
growth companies. It is designed for small and mid-sized companies, particularly those in
the early stages of their development who have specific funding needs. I hope the
measure I am introducing will assist SMEs in accessing funding to grow their
businesses.

Id like to thank the Irish Stock Exchange for the help they have provided in this matter
and I am confident that a productive relationship between the ISE and the Department of
Finance will have a positive efect on the fortunes of Irelands businesses and the
prospects for job creation in Ireland.

ENDS

Wednesday 17 May 2017

For Further information:

David Byrne Press Officer pressoffice@finance.gov.ie +353 86 026 7978

Notes for Editors

What is the aim of this measure?

The signing of this order commences section 70 of the Finance (No.2) Act 2013.

Non-bank finance has become an increasingly important source of capital for those
businesses that wish to grow and create employment.

The Enterprise Securities Market (ESM) is the Irish Stock Exchanges (ISE) market for
growth companies. It is hoped the exemption from Stamp Duty will encourage more
investors to back these companies increasing the supply of equity available to SMEs for
growth and job creation.

This Stamp Duty measure could encourage entrepreneurs and growth companies to use
public equity markets as a source of financing.

The exemption removes any competitive disadvantage that Irish growth companies may
face compared to companies located in other EU jurisdictions where a stamp duty regime
is not in place. The measure also brings them on a par with UK companies following the
abolition of stamp duty for UK companies listed on Alternative Investment Market (UK
equivalent to the ESM).

What is the estimated cost of the proposed exemption for ESM companies?

The cost is estimated at 5m in a full year.

What is the charge to Stamp Duty on the transfer of shares?

Transfers of shares in Irish companies incur a 1% stamp duty charge

What is the annual yield from Stamp Duty on share transfers?

The annual yield from Stamp Duty on share transfers since 2009 is as follows:

2009 208 m

2010 182 m

2011 195 m

2012 172 m

2013 252 m

2014 282 m

2015 424 m

2016 392 m

How will this exemption benefit the Company if it is the purchaser that is liable for the Stamp
Duty?

When a companys shares are transferred, Stamp Duty is a cost to the purchaser of the
shares and not the Company. However, the exemption and therefore the cost saving,
may increase the attractiveness of the shares to potential purchasers thereby increasing
the funding available to a company.

http://www.finance.gov.ie/news-centre/press-releases/minister-
noonan-makes-it-easier-invest-irelands-growing-businesses

Microfinance Ireland awarded

European Code of Good
Conduct
16th May 2017
Microfinance Ireland, the government funded not-for-profit lender is
delighted to announce it has been awarded, by the European
Commission (EC), a certification of compliance with the European
Code of Good Conduct for Microcredit Provision.

The certification confirms Microfinance Irelands position as a best-

in-class micro credit provider in Europe, being one of the first four
institutions in Europe to qualify and the only organisation in Ireland
to receive this award.

To achieve this award recipients must comply with 175 standards

and ethical practices set down by the EC. The Code determines
quality in the sector across several areas including: customer
relations; governance; credit and risk management; and
management information systems.

Welcoming the award Pat Breen, T.D. and Minister for Employment
and Small Business, said: This is a significant achievement by
Microfinance Ireland. As Irelands national micro credit organisation,
it is important that it operates to the highest level and this award
confirms that Microfinance Ireland functions amongst the top
providers in Europe. Of particular note is the fact that Microfinance
Ireland has been recognised for its positive dealings with customers
and its risk management. I would like to congratulate the team in
Microfinance Ireland on this achievement.

Commenting on the new accolade, Garrett Stokes, CEO of

Microfinance Ireland said the endeavours of the not-for-profit lender
has resonated across the country since its inception in 2012, with
18m in loans helping the small business community.

As a small micro credit provider in European terms, we are

delighted to have reached the standards of business behaviour and
performance required to achieve this award, he said. These
standards are for the benefit of our customers, the Irish government
who fund us, regulators and partner organisations.
We provide loans to small businesses which supports the creation
of jobs across Ireland. We are very pleased to be confirmed as a
centre of excellence for the provision of micro credit in Europe. We
continue to see growing demand for our services and as we
continue to develop, it is important that the company operates to
the highest standards, across all our activities.

ENDS

Notes for the editor:

About Microfinance Ireland (MFI)

www.microfinanceireland.ie: Microfinance Ireland is a not-for-
profit lender established in 2012 to deliver the Governments
Microenterprise Loan Fund. Microfinance Ireland benefits from a
guarantee funded by the European Union under the Programme for
Employment and Social Innovation (EASI).

Microfinance Ireland provides an alternative source of funding to

micro-enterprises* both new and existing - who may be having
difficulties in accessing finance from commercial providers. It
ultimately supports the creation and/or retention of jobs.

Offering four types of start-up loans ranging between 2,000 and

25,000, MFI has to date approved approximately 18 million in
loans to 1,250 businesses, supporting an estimated 2,950 jobs.

* Micro-enterprises are defined as any business with less than 10

employees and annual turnover of less than 2M.

More information on the Code of Good Conduct is available on the

ECs
website: http://ec.europa.eu/regional_policy/sources/thefunds/doc/co
de_bonne_conduite_en.pdf

Minister Noonan publishes the Asian Infrastructure

Investment Bank Bill 2017

12.05.17

Minister Noonan publishes the Asian Infrastructure Investment Bank Bill 2017
The Minister for Finance, Michael Noonan T.D. today (12 May 2017) published the Asian
Infrastructure Investment Bank Bill 2017. This Bill will provide for Irelands potential
membership of the Asian Infrastructure Investment Bank (AIIB). As previously
announced, Irelands application for membership of the AIIB was accepted on 23 March
2017.

Membership of the AIIB would require ratification of an international agreement.

Under the provisions of the Constitution, such ratifications require the approval of the
Oireachtas through the enactment of appropriate primary legislation.

Irelands application for AIIB membership is based on a desire to further

strengthen our growing trade and economic links to Asia and China in particular and
to continue Irelands firmly established commitment to international development.

The AIIB will seek to address the significant demand for infrastructure in Asia,
with the aim of fostering economic development and regional integration.

This is the second piece of legislation published by the Minister for Finance
Michael Noonan T.D. this week.

Commenting on the decision to approve Irelands application for membership, Minister for
Finance Michael Noonan T.D. stated:

I am pleased to announce the publication of the Asian Infrastructure Investment Bank Bill
2017. This is the next step in completing Irelands membership of this important regional
development Bank, which will play an important role in fostering sustainable economic
growth and prosperity in Asia.

Irelands membership of the AIIB will further develop our strong ties to this region and is
in keeping with our commitment to international development. During my recent visits to
Malaysia and Singapore I witnessed the extent of Irelands connections with this growing
and vibrant area of the world. I could also see the potential of this region to deliver even
greater economic opportunities for our exporters and how important it is to have strong
ties with the region. Membership of the Asian Infrastructure Investment Bank will give
Ireland a permanent connection to Asia and China as they continue to grow and
advance.

ENDS

Friday 12 May 2017

For Further information:

David Byrne Press Officer pressoffice@finance.gov.ie +353 86 026 7978

Note for Editors

About the Asian Infrastructure Investment Bank (AIIB)

The Asian Infrastructure Investment Bank is a new multilateral financial institution which
came into operation in January 2016 and aims to foster economic development and
regional integration in Asia, primarily through investment in infrastructure. The Bank has
57 Founding Members and is based in Beijing.

http://www.finance.gov.ie/news-centre/press-releases/minister-
noonan-publishes-asian-infrastructure-investment-bank-bill-2017

Minister Noonan publishes the Asian Infrastructure Investment Bank

Bill 2017
http://www.finance.gov.ie/sites/default/files/AIIBmemo.pdf
Asian Infrastructure Investment Bank Bill 2017 Explanatory
Memorandum
http://www.finance.gov.ie/sites/default/files/AIIBmemo_0.pdf
AIIB Regulatory Impact Analysis, Title of Legislation- Asian
Infrastructure Investment Bank Bill 2017
http://www.finance.gov.ie/sites/default/files/Updated%20RIA
%20Publication.pdf

Aspire Technology announces

150 new jobs in Dublin
12th May 2017

New state-of-the-art Network Support Centre in

Sandyford
Aspire Technology, an independent, Irish-owned and managed ICT
company today (Friday, 12 May 2017) announced 150 new jobs at
their Irish headquarters in Sandyford, County Dublin. Founded in
2010, Aspire Technology delivers end-to-end mobile network
lifecycle professional services and product solutions to the worlds
leading telecommunications, equipment and software providers.

The new positions, which are supported by the Department of Jobs

through Enterprise Ireland, cover a broad spectrum of ICT and
mobile telecommunications technologies and competencies. The
roles include software developers, network engineers, design
specialists and project managers at both experienced and graduate
levels. Recruitment of the new positions is starting immediately
including an extensive graduate recruitment programme.
As part of the expansion, Aspire Technology will be adding to their
existing headquarters in Sandyford where they will build a state-of-
the-art Network Support Centre. The new centre will serve over 16
million mobile customers across 32 markets during 2017. Plans are
already in place to grow this facility to manage over 50 million
mobile customers.

Announcing the new jobs, Bill Walsh, CEO and Founder of Aspire
Technology said: Aspire Technologys growth is based on our world-
class people whose deep expertise, allied with the innovative and
entrepreneurial culture within the company, has resulted in a
significant increase in demand for our solutions. We are thrilled that
we are doubling our team in 2017. We have amazing opportunities
for ambitious candidates who love working with people and
technology. Our culture is built on developing and supporting our
teams to deliver exceptional expertise to our international blue-chip
customers. This culture is reflected in our high levels of employee
satisfaction and we are proud to be known in the industry as having
an exceptionally high employee retention ratio.

Welcoming the announcement, Minister for Jobs, Enterprise and

Innovation, Mary Mitchell OConnor TD, said: Todays
announcement that Aspire Technology, an indigenous company, is
creating 150 new high-tech, professional jobs in Dublin is exciting
and very welcome. It is testament to the vision and hard work of
everyone in Aspire Technology that the company has grown from a
small start-up into a highly innovative and successful company. The
Government through Enterprise Ireland looks forward to continued
engagement with Aspire Technology as they scale their business in
international markets. I wish Bill and all the team at Aspire
continued success for the future.

Kevin Sherry, Executive Director, Enterprise Ireland concluded:

Enterprise Irelands mission is to partner with innovative Irish
businesses with the drive and ambition to scale internationally.
Aspire Technology is a great example of an indigenous Irish ICT
company with global ambition, competing and winning against
strong competition in international markets. This expansion is
testament to the ambition and capabilities of the
company. Enterprise Ireland has been working with Aspire
Technology since its establishment in 2010, and we are proud to be
backing this exciting new phase in its development with support for
150 new highly-skilled jobs at their headquarters in Dublin.

ENDS

Photos will be syndicated by Fennell Photography on Friday

morning.
For further information contact:

Bill Walsh, CEO, Aspire Technology M: 087-1418801

Nicola Corboy, Press & Media Relations, Enterprise Ireland M: 086-

021011

Notes to Editor:

Insert text here about Aspire Technology and reference to finalist in

2014 E&Y Entrepreneur of the Year Awards

External and Internal Spillovers - Governor Philip R. Lane speech to ACI World
Congress
http://www.bis.org/review/r170517c.pdf

Central Banks Rainbow Network

launches in Dublin

The Central Banks Rainbow Network launched in Dublin on

Wednesday May 24 2017 at a special inaugural event, attended by
Governor Philip R. Lane, Sodexo Ireland CEO Margot Slattery and
more than 120 Central Bank staf.
The new network supports an organisational culture in which
LGBTQ colleagues can live and work openly. It also aims to
combat homophobic or transphobic behaviours and demonstrate
the Central Banks leadership as a public sector employer.
Governor Lane introducing Margot, currently LGBTQ
businessperson of the year, as keynote speaker at the event in
North Wall Quay said the Rainbow Network launch was a happy
day for the Central Bank.
He said after the vote for equal marriage two years ago and the
2015 gender recognition law, which enshrine transgender rights,
Ireland was a European leader in social acceptance.

While we can all be proud of those achievements, there is more to

be done. Research published last year in the United States by
Human Rights Campaign showed that 62 percent of millennial
LGBTQ graduates in the US return to the closet when they enter
the workplace. We all know people who are open in a social setting
but shut up when they go to work.
He said : We spend so much time in work, it is only right that we
can present ourselves honestly and openly to our colleagues,
many of whom become our friends.
There is a clear business case for us to have a diverse and
inclusive workplace. In order to carry out our mission of
Safeguarding Stability and Protecting Consumers, we need to
make good decisions, challenge our approaches and safeguard
against groupthink. Diversity and inclusion help to achieve these
outcomes.
Margot Slattery said: What we are all doing here in Irelands
Central Bank matters, because it is special. It matters because you
here doing this - its a public acceptance and a visible embrace of
diference and inclusion of our togetherness.
She spoke about her own life as a woman initially afraid to state
her sexuality at work and how much progress had been made in
recent years. For her, visibility and endorsement in the workplace
were important.

There are the things you say and the things you dont say. How
you make people feel included. People who feel open and give of
themselves fully can bring so much more to the organisation; they
are more productive and focus their energy on development and
growth. For us in Ireland and Europe right now this is vital.

Earlier, the Governor spoke about Central Bank staf choosing

BelongTo as one of our partner charities. "Over the last two years
more than 50,000 has been donated in support of their work in
schools, combating homophobic and transphobic bullying,
supporting teachers and mentoring parents and LGBTQ young
people, he said.
The Governor added that the Central Banks Diversity and
Inclusion programme has seen the Womens Network go from
strength to strength. He said there would be a whole matrix of
networks launching in the near future in the Central Bank including
a Parents and Carers and a BankAbility Network.
https://www.centralbank.ie/about/corporate-social-
responsibility/workplace/rainbow-network-launch

Irelands IMF Country Report No. 16/258 FINANCIAL SYSTEM

STABILITY ASSESSMENT

http://www.imf.org/external/pubs/ft/scr/2016/cr16258.pdf

Patrick Honohan of Ireland's Central Bank on making the euro

viable
Nov 16, 2012
Patrick Honohan, Governor of the Central Bank of Ireland, on keeping the
euro viable and introducing banking supervision.
Full International Bar Association Global Insight interview with Patrick
Honohan: http://bit.ly/Qisunf

More IBA films at http://tinyurl.com/ibafilms

http://www.ibanet.org

https://www.youtube.com/watch?v=oYj77qXT5AE

Remarks by Governor Philip R. Lane to the London Irish

Business Society
31 Jan 2017 Speech

International Policy Trilemmas

The implications of global and regional integration for policymaking have been much
studied in recent decades. Indeed, I spent 2002-2008 as Director of the Institute for
International Integration Studies (IIIS), which aimed to provide multi-disciplinary
perspectives on the myriad policy challenges associated with cross-border integration[i].

In relation to economic policy, three so-called trilemmas capture the tensions in

determining policy choices in an integrated world economy. First, the Mundell-Fleming
trilemma postulates that only two of the following three choices are simultaneously
feasible: an independent monetary policy; a stable exchange rate; and unrestricted
international capital mobility[ii]. Among the advanced economies that largely adhere to
the principle of unrestricted capital mobility, we see countries with independent monetary
policies and floating exchange rates and we see countries opting for a shared monetary
policy through the elimination of national currencies in the form of the European monetary
union. For some major emerging economies, restrictions on international capital mobility
are imposed in order to target both a stable exchange rate and some independence in
domestic monetary policy.

Second, as proposed by Dirk Schoenmaker, the financial trilemma has it that only two of
the following three options are possible: financial stability; independent national financial
policies; and cross-border financial integration[iii]. A restrictive approach to cross-border
financial trade can enable a country to combine the maintenance of financial stability with
purely domestic financial sector policies, while liberalisation in financial services trade
typically requires considerable cross-border policy collaboration if financial stability is to
be achieved, especially during periods of financial turmoil.

Third, as developed by Dani Rodrik, the political economy trilemma lays out the restrictive
choices between: deep economic integration; democratic politics; and national policy
autonomy[iv]. At a strategic level, the institutional development of the European Union
has been directed at providing sufficient democratic foundations to underpin enhanced
integration across various policy dimensions, through Treaty reforms, inter-governmental
mechanisms such as the European Council and an enhanced role for the directly-elected
European Parliament. However, the Brexit decision now compels Europe to also develop
mechanisms to foster collaboration between two entities (the EU and the UK) that will no
longer be bound together by a common multi-layered institutional framework.

While the trilemma framework is perhaps too stark, it is analytically helpful to recognise
the genuine tensions across inter-linked policy dimensions. Let me focus in on the
monetary policy and financial trilemmas. In relation to monetary policy, Brexit does not
alter the status quo, which no commitment on either side to stabilise the value of Sterling
against the euro and the Bank of England and the European Central Bank each pursuing
an independent monetary policy.

In relation to financial stability policies, much has already been written as to the prospects
for post-Brexit financial services trade between the UK and the EU. In relation to the
clearing of euro-denominated trades in the UK, President Draghi has recently pointed out
that it will be important to find solutions that at least preserve, or ideally enhance, the
current level of supervision and oversight.[v]This is important both in relation to the
ECBs role as a supervisor of clearing member banks and as the central bank of issue for
the euro.

More broadly, the maintenance of financial stability necessarily requires considerable

bilateral and multilateral collaboration across major central banks. During the global
financial crisis, this included a network of currency swap lines to facilitate access to
foreign-currency liquidity, while fora such as the Bank for International Settlements and
the Financial Stability Board enable the sharing of analysis and information across
jurisdictions. Similarly, there is a significant degree of coordination in banking regulation
through the Basel Committee. Still, there are inevitably diferences of degree in terms of
the scale of coordination within the EU relative to that achievable through global
institutional frameworks. Let us see if some intermediate-level arrangements between
the UK and the EU will be delivered through the upcoming EU-UK negotiations.

https://www.centralbank.ie/docs/default-source/news-and-media/legal-notices/settlement-
agreements/public-statement-relating-to-settlement-agreement-between-central-bank-of-
ireland-and-allied-irish-bank.pdf?sfvrsn=12

Settlement Agreement between the Central Bank of Ireland and Drimnagh Credit Union
Limited

https://www.centralbank.ie/docs/default-source/news-and-media/legal-notices/settlement-
agreements/public-statement-on-drimnagh-credit-union.pdf?sfvrsn=4

Settlement Agreement between the Central Bank of Ireland and Kinsale Capital
Management Limited
https://www.centralbank.ie/docs/default-source/news-and-media/legal-notices/settlement-
agreements/public-statement-on-kinsale-capital-management.pdf?sfvrsn=4

[i] This work now carries on under the umbrella of Trinity Research in Social Sciences
(TRiSS), which is the successor institution to the IIIS. The work of the IIIS is archived
at http://www.tcd.ie/iiis.

[ii] Maurice Obstfeld, Jay C. Shambaugh and Alan M. Taylor (2005), The Trilemma in
History: Tradeofs Among Exchange Rates, Monetary Policies and Capital
Mobility, Review of Economics and Statistics 87(3), 423-438.

[iii] Dirk Schoenmaker (2011), The Financial Trilemma, Economics Letters 111, 57-59.

[iv] Dani Rodrik (2011), The Globalization Paradox: Democracy and the Future of the
World Economy, WW Norton.

[v] Letter from the ECB President to Ms Perevenche Beres, MEP, on the legal framework
for central counterparties, 11 January 2017.

https://www.centralbank.ie/news/article/remarks-by-governor-philip-
r-lane-to-the-london-irish-business-society

Warning Issued on Unauthorised

Investment Firm/Investment Business
Firm - Chicago Law Group (USA)
22 May 2017 Press Release
The Central Bank of Ireland (Central Bank) today (22 May 2017)
published the name of an unauthorised firm, Chicago Law Group
(USA). Chicago Law Group (USA) is not authorised by the
Central Bank as an investment firm, investment business firm or to
provide investment advice.
A list of unauthorised firms published to date is available on the
Central Bank website.
It is a criminal ofence for an unauthorised firm/person to provide
financial services in Ireland that would require an authorisation
under the relevant legislation which the Central Bank is the
responsible body for enforcing. Consumers should be aware, that if
they deal with a firm/person who is not authorised, they are not
eligible for compensation from the Investor Compensation
Scheme.
Any person wishing to contact the Central Bank with information
regarding such firms/persons may telephone (01) 224 4000. This
line is also available to the public to check if a firm is authorised.
Since obtaining the necessary legal powers in August 1998, the
names of 294 unauthorised firms have been published by the
Central Bank.
https://www.centralbank.ie/news/article/warning-issued-on-
unauthorised-investment-firm-investment-business-firm-chicago-
law-group
AIB Annual Financial Report
https://aib.ie/content/dam/aib/investorrelations/docs/resultscentre/a
nnualreport/AIB-Group-UK-plc-Annual-Financial-Report-2015.pdf
AIB SALE Senior Management Team, Accountant in Bankruptcy

https://www.aib.gov.uk/sites/default/files/publications/Resource/Doc/
4/0000347.pdf
ACADEMY OF INTERNATIONAL BUSINESS US-MIDWEST CHAPTER
ANNUAL REPORT 2014-2015 Man Zhang President, AIB US-Midwest
ABOUT THE AIB US-MIDWEST CHAPTER
http://documents.aib.msu.edu/community/chapters/2015/15_USMid
west.pdf
Annual Financial Report 2009 Annual Financial Report 2009. ... AIB cautions that
the foregoing list of ... NAMA,an agreement with the EU
https://aib.ie/content/dam/aib/investorrelations/docs/resultscentre/a
nnualreport/annual-report-2009.pdf
Programme for Government: Annual Report 2012 ... minimum wage
and agreement on ... and Allied Irish Bank no longer availing of ELA.
https://www.labour.ie/download/pdf/annual_report_of_govt_2012.pdf
ireland General Insurance Convention Study Group" International
Actuarial Association. 1985
http://web.archive.org/web/20060222102559/http://www.actuaries.o
rg.uk/files/pdf/library/proceedings/gen_ins/gic1985/ireland.pdf

Allied Irish Banks plc (AIB) (Irish: Bainc-Aontas ireann),ISEQ:

ALBK, LSE: ALBK, NYSE: AIB, FWB: AIB is a major commercial bank
based in Ireland not to be mistaken for Anglo Irish Bank. AIB is one
of the so called Big Four commercial banks in Ireland.

Allied Irish Banks plc

Type Public
Founded 1966
Headquarters Dublin, Ireland
Dermot Gleeson, Chairman
Key people Eugene Sheehy, Group Chief
Executive
Products Banking products
Revenue 4.868 billion (2007)
Operating
income
2.508 billion (2007)
Net income 2.248 billion (2007) [1]

Employees 24,000 (2004)

 Website aib.ie
The bank has one of the largest branch networks in Ireland; only
Bank of Ireland fully rivals it. AIB offers a full range of personal
banking services, including loans, credit cards and mortgages. The
bank also offers a range of general insurance products such as
home, travel, and health insurance. It offers life assurance and
pensions through its wholly owned subsidiary, Ark Life Assurance.
The bank also offers the full range of corporate banking services.
AIB Capital Markets is the division of the company that offers
international banking and treasury operations. It offers stockbroking
services through its subsidiary Goodbody Stockbrokers.
Internationally, AIB operates mainly in the United Kingdom (as
Allied Irish Bank (GB) and First Trust Bank in Northern Ireland), and
Poland (as BZ-WBK). It also owns a 22.5% stake in M&T Bank in the
United States.
Name
Allied Irish Banks is usually referred to, both inside and outside the
company, as simply AIB and often by its trade name of Allied Irish
Bank (singular). In Northern Ireland however, the bank trades as
First Trust Bank, while in Great Britain, it is called Allied Irish Bank
(GB) the only part of the operation where the full name, in the
singular, is still in day-to-day use.
Initially, the bank operated under the names of its former
constituent companies, alongside a new AIB logo, a circle divided in
three with an A at the centre. From 1970, these were replaced by
Allied Irish Banks. In 1990, AIB introduced a new logo (prompted,
it was said in some quarters, by the remarkable similarity between
its previous logo and that of Mercedes-Benz.). Since then, the bank
has preferred to be referred to as simply AIB, though Allied Irish
Banks plc remains its legal name.
The bank is often referred to colloquially as AIB Bank, an example
of a redundant acronym. This is due to the name AIB Bank being
adopted for the Republic of Ireland branch banking business at the
time of the 1990 rebrand (with the word Bank being printed in the
green stripe in the logo). This version of the logo is no longer used
in print advertising but can still be seen on the facades of most AIB
branches in the Republic. The Trustees Savings Banks similarly
rebranded to TSB Bank in 1993.
[edit] History
Allied Irish Banks Limited was formed in 1966 as a new company
which acquired three Irish banks: Provincial Bank of Ireland, Royal
Bank of Ireland, and Munster & Leinster Bank. The banks saw an
alliance as the best way to overcome the fragmented nature of the
Irish banking industry. Ireland in the mid-1960s was changing fast
and the merger strengthened the banks position in the emerging
global business era. In 1966, AIBs aggregate assets were 323.8
million as at 31 December 2005, the AIB Group had assets of
133 billion.
[edit] Early history
* 1825 Provincial Bank commenced operations, pioneering joint
stock branch banking in Ireland. It also established a branch in
London.
* 1836 Royal Bank of Ireland (RBI) commenced operations. It was
known for its mercantile links.
* 1837 Shaws Bank merged with Royal Bank.
* 1864 The Munster Bank is established.
* 1867 The Munster Bank purchased some of the branches of the
unsuccessful Union Bank of Ireland.
* 1870 The Munster Bank acquired the long established private
bank David La Touche & Son.
* 1885 The Munster Bank failed due to mismanagement and fraud
and is liquidated. However, Munster and Leinster Bank commences
operations. Eventually it will become the largest of the three banks
with the most extensive branch network.
* 1923 The Royal Bank of Ireland bought the Irish Free State
business of the Belfast Banking Company, which in turn bought the
Northern Ireland business of the Royal Bank.
[edit] Recent history
Over the decades, AIB has become an increasingly international
organisation. It created a branch network in Britain in the 1970s.
Then in 1983, AIB invested in First Maryland Bancorp in the USA. In
July 1991, AIB merged the Groups interests in Northern Ireland
with those of TSB Northern Ireland to create First Trust Bank. In
July 1997, AIB acquired Dauphin Deposit Corporation which it
merged with First Maryland Bancorp to form Allfirst in 1999.
AIB invested in Poland by gradually building a majority shareholding
of 60.1% in Wielkopolski Bank Kredytowy (WBK) between 1995 and
1996. In June 1999, AIB reached an agreement with the Polish
State Treasury to acquire an 80% shareholding in Bank Zachodni
SA. In June 2001, AIB completed a merger of the two banks to
create Bank Zachodni WBK SA. AIB now owns 70.5% of the
combined bank, which is a leading bank in Poland in terms of asset
size and key product market shares.
Between 1999 and 2001 AIB had an interest in Keppel TatLee Bank
in Singapore, but withdrew after Oversea-Chinese Banking
Corporation (OCBC) acquired Keppel TatLee.
In April 2003, AIB completed a deal merging AIBs US subsidiary,
Allfirst, with M&T Bank Corporation. AIB now has a 22.5% stake in
M&T, which is headquartered in Buffalo, New York. AIB maintains
representative offices in the United States in Chicago, Philadelphia,
Atlanta, Los Angeles, and White Plains.
Controversy
The Can of Worms at ICI was the headline in Business & Finance
magazine on November 8, 1984.[2] Insurance Corporation of
Ireland (ICI) was a wholly owned subsidiary of AIB when it
collapsed in 1985 with losses of over 200 million that had arisen
due to severe under-reserving and poor underwriting performance,
particularly in its London office. Reinsurance business accounted for
nearly half the companys income. ICI management were at fault for
failing to monitor closely the activities of its London office, to find
out what business was being written, whether adequate reserves
were being maintained and to monitor the true profitability of the
business. When it was discovered in November 1984 that ICI was
operating below the statutory reserve ratio a request for further
capital was made to AIB ICI had returned a profit of 80 million
the previous year.
This collapse occurred at a time of deep economic recession in
Ireland. The level of Government debt at that time was 116% of
GDP. But the Irish taxpayer bailed ICI out of its difficulties. The Irish
Government did so to ensure a continuation of the insurance
business and to protect policyholders. AIB claimed that it could not
resolve the problems of ICI without putting its core banking
business in jeopardy. The investment of 85 million by AIB in ICI
was written off and the cost to the Irish taxpayer was 400
million[3].
John Rusnak
It was Irelands biggest banking scandal and the fourth-biggest
banking scandal in the world when it was exposed on February 4,
2002 during Michael Buckleys tenure as group chief executive. John
Rusnak , a lone wolf currency trader at Allfirst, a regional Maryland
based bank owned by AIB racked up losses of almost
$700,000,000[4], [5]
[edit] Tax evasion
The 90 million settlement that AIB reached with the Revenue
Commissioners in respect of Deposit Interest Retention Tax evasion
in 2000 was the highest tax settlement in the history of the State.
The banks internal auditor, Tony Spollen[6], highlighted a potential
deposit interest retention tax (DIRT) liability of 100 million for the
period 1986 1991[7],[8] but Gerry Scanlon, the group chief
executive at that time rubbished this estimate, describing it as
infantile. The Oireachtas Sub-Committee Inquiry into DIRT hearing
on September 27, 1999 concluded that it was extraordinary when
Scanlon told the Inquiry that he was unaware of the scale of the
DIRT issue.
Four former senior executives were fined by the Revenue
Commissioners on March 28, 2006 for a tax settlement arising plus
penalties from their interest, while employed by AIB, arising from
investments they maintained in Faldor Limited[9]. Faldor was an
investment company set up in the British Virgin Islands to manage
funds on behalf of these senior AIB executives as well as people
connected to them between 1989 and 1996. The funds in the
company were then managed on their behalf by Allied Irish Banks
Investment Managers at a time when Mr Gerry Scanlan was chief
executive of the bank.
Faldor subsequently benefited from inappropriate deal allocations,
and artificial deals that amounted to 48,000 out of AIB Investment
Managers own funds.
Those cited include
* Gerry Scanlon, chief executive AIB Group when this arrangement
was in place, of Glenageary, County Dublin from whom tax and
interest penalties amounting to 206,010 was secured.
* Diarmuid Moore, former director of corporate strategy at AIB,
Malahide, County Dublin from whom tax and penalties of 51,044
was secured
* Roy Douglas, chairman, Irish Life & Permanent Plc and formerly of
AIB, Howth, County Dublin from whom tax and penalties of
53,245.43 was secured
* Patrick Dowling, former deputy chief executive, late of Delgany,
County Wicklow from whose estate tax and penalties of 13,000
was secured
[edit] Excess FX charging issues
In 2004 it was revealed that the bank had been overcharging on
foreign exchange transactions for up to ten years. The overcharging
affected 3 million purchase transactions of foreign drafts. Initially
the projected amount of overcharging was 14m. However the bank
has set aside 50m to cover the cost of refunds.
The Irish Financial Services Regulatory Authority published a report
into an investigation of AIB Group concerning overcharging its own
customers for FX transactions and deal allocation and other
associated issues[12]. This revealed excess charges of 34.2
million, including interest. AIB failed to comply with the law for a
period of almost 8 years and that certain staff and management
were fully aware of this at the time.
AIB announced on September 27, 2006 that the final outlay in
respect of restitution and interest arising from overcharging
amounted to 65 million and that this included a donation of 20.6
million on behalf of its customers to an unspecified charity that it
was unable to identify. No employee or officer of the banks is to be
disciplined [13].
Other charging issues
Apart from FX, the Financial Regulator discovered, following an
anonymous tip-off, that AIB overcharged customers 8.6
million[14]. The account categories involved were:
* Surplus Builder, variable rate mortgage product with savings;
4,200 customers impacted; financial impact 3.6 million
* Student and Graduate facilities: 34,000 customers impacted;
financial impact 1.4 million
* Overdraft limit amendments, fees incorrectly applies: 24,000
customers impacted; financial impact 600,000
* Financial & Leasing, early termination of consumer leases: 950
customers impacted; financial impact 230,000
* Personal Savings Plans Products, loan discounts: 2,436 customers
impacted; financial impact 196,000
* Overdraft interest in Foreign Currency Hold Accounts, incorrect
reference rate applied: 200 customers impacted
* Merchant Terminal Rental Charges: 155 customers impacted
* PPI Mortgage Top Ups: 573 customers impacted
Deal Allocation and associated issues
Between 1989 and 1996, funds of certain senior executives of AIB
at the time and/or related parties were managed by Allied Irish
Investment Managers Limited (now AIBIM) through a British Virgin
Islands investment company, Faldor Ltd
Faldor benefited from inappropriate favourable deal allocations, by
way of artificial deals, amounting to approximately 48,000 out of
AIBIMs own funds. We have no evidence to indicate that the
beneficiaries of Faldor influenced or were aware of these allocations.
AIBIMs own trading funds were also used to boost, through the
unacceptable practice of artificial deals, the performance of certain
clients portfolios, other than those of Faldor.
Further inappropriate deal allocation practices relating to eight
transactions in the period 1991 to 1993 were identified which
adversely affected the performance of two specialist unit trusts,
amounting to a total of 174,000, to the advantage of other clients.
These were unrelated to Faldor. While the Internal Audit function of
AIB did identify some inappropriate dealing practices in 1991 and
1993, there is no evidence that the Faldor account was identified in
these audits.
No disciplinary action was taken against individuals involved in
these practices at the time and compensation was not paid to the
unit trusts affected. When this episode of law breaking was exposed
a disciplinary process was put in place within AIB and compensation
has been paid to those who were disadvantaged.
Tom Mulcahy, group chief executive of AIB from 1994 to June 2001,
resigned the chairmanship of the board of Aer Lingus on May 28,
2004 following the disclosure of this matter.
[edit] Charles Haughey and the Moriarty Tribunal
In 2006, the Moriarty Tribunal published its report into the financial
affairs of former Taoiseach Charles Haughey. Mr. Justice Moriarty
found that AIB had settled a million-pound overdraft with Haughey
on favourable terms for the politician shortly after he became
Taoiseach in 1979; the tribunal found that the leniency shown by
the bank in this case amounted to a benefit from the bank to
Haughey. According to the report, the bank showed an
extraordinary degree of deference to Mr. Haughey despite his
financial excesses.[16]
Current developments
The bank is currently involved in several high profile deals. Their
Capital Markets division is advising the Irish government on the
privatisation of the countrys national airline Aer Lingus. They are
also providing the finance for the Doyle familys bid to take control
of the Jurys group of hotels. The bank is said to be considering
selling its stake in M&T.
The bank is currently involved in a number of sale and leaseback
deals with its properties. In 2005 it sold an extension to its
Ballsbridge Bankcentre headquarters for 367m. There also plans to
sell the remainder of the building for 275m, as well as the banks
branch network for 421m.
In February 2006 the bank announced record pre-tax profits of 1.7
billion, a 23% rise on the previous year and the largest ever for an
Irish bank. The majority of the increase came from its Republic of
Ireland operations, but with its Capital Markets, Northern Ireland,
Great Britain, Poland and American divisions also making significant
contributions. This led to criticism from some newspapers, as their
profit per customer is up to three times that of other European
banks. Former Irish Labour Party leader Pat Rabbitte called for more
competition in the Irish banking sector. In August 2006 the bank
again announced record profits for the first half of 2006, making
1.2 billion before tax, equating to 1.2 million per hour.[17], a
figure equivalent to the earnings per hour of 156,862 people on
Irelands minimum wage.
AIB were the main sponsors of the 2006 Ryder Cup, which was held
at The K Club in Straffan, County Kildare. In May 2006 the bank
launched a 5 million advertising campaign for the tournament.
Dermot Gleeson
Dermot Gleeson SC was appointed a director of the bank in May
2000 and chairman of the board in October 2003. His term of office
was extended on September 8, 2006 to April 2011
https://multibanks.wordpress.com/banks-of-uk/allied-irish-banks/
STATEMENT OF LIAM OREILLY DELIVERED PURSUANT TO
DIRECTION ...

the Irish Financial Services Regulatory Authority ... AIB Group on Foreign Exchange
& OtherCharging Issues & Deal Allocation & Associated Issues published on 7 Feb
2013

https://inquiries.oireachtas.ie/banking/wp-
content/uploads/2015/06/Liam-OReilly-Opening-Statement.pdf

Ennismore European Smaller Companies Fund

Investor Newsletter for the month of November 2004 Issued on 8 December 2004
http://www.ennismorefunds.com/documents/OEIC/Newsletters/2004/
NL%20OEIC%20Nov%2004.pdf
corporate and institutional bank Financial Services Authority. ...
AMF), Irish Financial Services Regulatory Authority, ...
https://www.produitsdebourse.bnpparibas.fr/MediaLibrary/Document
/Backend/Derivative_Documents/RBS/NL0000457703_FR_BaseTerms.
pdf

Deputy Governor of Central Bank, Tom OConnell Tells

All at Banking Inquiry
Its sometimes said that nobody seemed to know that a property boom or
bubble was developing. Thats that is completely incorrect in my view
Irelands banking and economic crash should never have happened,
should never have been allowed to happen, with all the consequences of
huge increases in unemployment, rising emigration, enormous debt,
suicides, etc., that we have seen.-the liquidity pumped out into the banks
was 140 billion, you know, with the both from the Central Bank and the
ECB. I mean, once you spell that out, thats 140,000 million there are
12 digits in that.- One can only surmise that, as Professor Alan Ahearne
has said here to your committee, too many people were benefitting from
the boom time for prudence avoidance prudent avoidance measures to
have been taken. Dep. Gov.TOM OConnell at BANKING INQUIRY

Was Seanie to be the fall-guy for the Entire Irish Financial

Elite???

OR WAS THE PROSECUTION DELIBERATELY FOULED UP SO THAT HE

COULD BE ACQUITTED WITHOUT HAVING TO INCRIMINATE THE CENTRAL
BANK, OTHER BANKS, DEPARTMENT OF FINANCE, GOVERNMENT
MINISTERS etc ???

Case against Fitzpatrick of Anglo Dismissed

he Judge said he was concerned as to why some documents were destroyed by the lead
investigator of the Office of the Director of Corporate Enforcement(ODCE) and not other
documents. It was possible that the destroyed documents could have damaged the
prosecution as well as the defence.

There is a particular way in which the destroyed (Shredded) documents could have
damaged the prosecution. They could have incriminated Central Bank (non) regulators,
heads of Pillar Banks, Ministers and senior Department of Finance Officials.

The full treacherous story could have emerged.

Shredded documents
In January it came to light that a lead ODCE investigator into allegations against FitzPatrick
shredded documents related to the case in what he (the investigator) called a calamitous
error.-Journal.ie Would You Believe That??

Will the lead investigator be sacked or will a person who may have ordered him to shred
the documents be sacked???

Maybe they both know where too many bodies, victims of the elites, are buried!!

UniCredit Bank whistleblower Jonathan Sugarman

appears before Dil Finance CommitteeThe Senior
Banker at IRISH FINANCIAL SERVICES CENTRE
was Blocked from Appearing before Banking
Inquiry
Rose Conway Walsh (SF) Interviews Jonathan Sugarman;

RTE Updated / Thursday, 13 Apr 2017 20:22

Listen to Some of the Proceedings of Dil Committee

Here http://www.rte.ie/news/business/2017/0413/867551-whistleblower-
sugarman-appears-before-finance-committee/
Listen to 3 interviews with Jonathan Sugarman;
https://www.youtube.com/watch?v=CuEhUicQz4s

Jonathan Sugarman, who was risk manager in UniCredit, has claimed that prompt action in
2007 might have avoided the need for a blanket guarantee and bailout of the Irish banks

The Oireachtas finance committee is to ask the Central Bank to supply it with documents
relating to the case of Jonathan Sugarman, a banker who warned of liquidity breaches at
his bank, UniCredit Bank Ireland, in 2007.

Mr Sugarman, who was risk manager in UniCredit, has claimed that prompt action in 2007
might have avoided the need for a blanket guarantee and bailout of the Irish banks.

Appearing before the committee today, Mr Sugarman, repeated his previous claims that his
warnings to superiors and the Central Bank about the UniCredits breaches of liquidity
requirements in 2007 went unheeded.

He subsequently resigned his position in September 2007 and said he has been unable to
find employment ever since.

He told the committee within two months of working with the lender he noticed
irregularities that needed investigating.

He said it became a daily occurrence to meet with the CEO to discuss risk issues.

Mr Sugarman said he was told the irregularities he noticed were glitches in the IT system
and that there was no need to worry.
The former risk manager added that a liquidity breach of 1% should have set alarm bells
ringing, but UniCredit only obliged the law and notified the regulator when the breach was
20%.

Mr Sugarman said he notified garda of the breaches and was later told the garda fraud
squad was dealing with the case.

He said that was the last he heard about it from garda, and this was in 2009.

He said his life has been utterly destroyed because I did the right thing, but the people
who did nothing got off absolutely scot-free.

I have been unable to work for ten years and have been unemployable for upholding the
law of Irish Republic.

Sentencing of Anglo and Irish Life and Permanent Top

Dog Fraudsters Adjourned until Friday
Thousands lost their life savings due to the fraud!

Wed July 27

Is there a dirty deal between the Government and the Defendants To Protect the state
from compensation claims?

At the sentence hearing on Monday Last, defence pointed out that there was no loss to the
bank or to the state due to the fraud

There ar no reports of the Prosecution on behalf of the Government pointing out that
thousands of small investors were defrauded of their life savings

There were several high ranking character witnesses called in support of mitigation of
sentence by the defence

But there were no victim impact statements given though these are criminal convictions

Prosecutor OHiggins SC,for the prosecution (State), told the judge that the maximum
effective sentence was ten years asccording to newspaper reports

But no demand for the maximum sentence to be applied was reported.

The defense on behalf of the convicted bankers did not call the then regulator, the then
governor of the central bank, the then secretary general of the Department of Finance

Have the defense instructed by the bankers and the government (who instructs the
prosecuting lawyers) done a deal to prevent small investors getting their money back???

Lawyers for the defendants and the Government must take instructions from their clients
unless such instructions are illegal, unethical or in breach of court rules.

Hence the players in any deal are not the lawyers but the government and the convicted
bankers.

Noonans Non Reply To Seamus Healy TD in Dil: Will Small Shareholders be

Compensated??
QUESTION NO: 115

DIL QUESTION addressed to the Minister for Finance (Deputy Michael Noonan)
by Deputy Seamus Healy for WRITTEN ANSWER on 23/06/2016

To ask the Minister for Finance if he will recommend that small shareholders be
compensated by the State at least to the extent of the entitlement of depositors under the
Bank Deposit Guarantee Scheme, given the conviction of two former executives of Anglo-
Irish Bank on a charge of conspiring to defraud investors, that Government and his
Department, the Office of The Regulator and the Central Bank were all aware of the
relevant transaction in advance of the publication of the misleading accounts of the affairs
of the bank and the other evidence and remarks of the Judge in Court (details supplied see
further down); and if he will make a statement on the matter.

REPLY.

As previously outlined to the Deputy in my answer to parliamentary question number 108

on 16th June 2016, Anglo Irish Bank was nationalised on 15 January 2009 and on that
date the Minister for Finance acquired all of the ordinary and preference share capital by
virtue of the provisions of the Anglo Irish Bank Act 2009, therefore, as of that date, the
ownership of the shares in Anglo Irish Bank would have transferred to the Minister for
Finance. If the Government had not nationalised Anglo Irish Bank, the Bank had the
potential to collapse and impact on the entire Irish banking system. At that time, shares
were valued on the market in the region of 0.22, however in the event of the Bank
failing, Anglo Irish Bank s shares would have been worthless.

Sections 22-32 of the Anglo Irish Bank Corporation Act 2009 provide that the Minister for
Finance shall appoint an Assessor at an appropriate time having regard to the public
interest. The job of the Assessor is to independently determine the fair and reasonable
aggregate value, if any, of the transferred shares and extinguished rights and the
consequent amount of compensation, if any, that may be payable to persons in respect of
Anglo Irish Bank shares transferred and rights extinguished under the Act. Since the
liquidation of IBRC in February 2013, there has been no timeframe set for the appointment
of an Assessor.

An update on the liquidation of IBRC can be found

at http://www.finance.gov.ie/sites/default/files/Progress%20update%20report_31%20Dec
%202015_0.pdf

The Deposit Guarantee Scheme (DGS) was established to protect depositors in the event
of a bank, building society or credit union authorised by the Central Bank of Ireland being
unable to repay deposits. The DGS is part of the Central Bank of Ireland s strategy to
ensure that the best interests of consumers of financial services are protected. The DGS is
administered by the Central Bank of Ireland and is funded by the credit institutions
covered by the scheme. The DGS was not established to protect equity investors.

Damning files reveal Central Banks role in 7bn banking fraud.

https://video-ams3-1.xx.fbcdn.net/v/t42.1790-
2/13496256_534332486777229_634636099_n.mp4?
efg=eyJybHIiOjMwMCwicmxhIjo1MTIsInZlbmNvZGVfdGFnIjoic3ZlX3NkIn0%3D&rl=300&va
br=91&oh=5c71058aa7559adca743950fdb4d9c68&oe=592B2F25

Damning files reveal Central Banks role in 7bn banking fraud.

Former Anglo bankers are found guilty of 7.2bn conspiracy.
Tom Darcy exposed this Truth on the Vincent Browne Show in May 2014.
Tv3 or Vincent Browne Have NOT issued an apology to Tom Darcy, Irish media
continues to censor Tom Darcys book Waiting for the Sheriff a book that dared
to reveal the truth. PLEASE REPOST. www.waitingforthesherriff.com.
It beggars belief that Vincent Browne and TV3 were allowed to get away with misinformation like this
remaining uncorrected
He pointed out the 7 billion Anglo problem, which was the subject of a recent high court ruling but VB said he
didn't remember that from the anglo tapes on the 2104 show, his statement cast doubt on what Tom had said,
the court ruling vindicated Tom Darcy proving he was correct in what he said but TV3 or VB have never
acknowledged that fact

Detail Supplied: In a document prepared for its board, the regulator admitted: There is
also information available that might be argued to support a defence against accusations of
market abuse, specifically in relation to knowledge within the Financial Regulator/Central
Bank, but also more generally in relation to the role of the Department of Finance, Central
Bank and Financial Regulator encouraging institutions to co-operate with each other in
extremely difficult circumstances where the very existence of the Irish financial system
was in some doubt.

There is also evidence in notes kept of meetings of the Domestic Standing Group
made up of the Department of Finance, the Central Bank and the Financial Regulator
that the state was monitoring how Anglo and IL&P were working together in the months
before the 7 billion fraud.-Sunday Business Post, 19/06/2016

Banks screw 300,000 mortgage holders

https://www.facebook.com/IBRCStrike/videos/961671387213046/

Pearse Doherty reminded the government of their failure to represent the 300,000 Mortgage
Holders being screwed by the banks with the highest variable interest rates in Europe
Feel free to download and share the letter now... i have redacted all personal details to allow it
to be shared... I am a customer for over 20 years and have had 5 diferent mortgages over
the years yet they claim they have no record of any documents or meetings i had with staf...
beggars belief.
An academic study commissioned by the PANA inquiry
itself, which was published this year, identifies Ireland as
one of the top conduit offshore centres in the world
which means that while multinationals may not hold all
their profits in the Irish state, they are allowed to use
Ireland to divert their profits to sink offshore centres such
as Bermuda. The mandate of the inquiry is broader than
the Panama Papers leak itself and is to examine
contravention or maladministration of EU law in money-
laundering, tax evasion and tax avoidance." ( Edited)
://www.sinnfein.ie/contents/44775

Noonan to be called before EU inquiry into tax

avoidance
Sinn Fein MEP Matt Carthy has announced that outgoing Irish
Finance Minister Michael Noonan is to be called to appear before a
hearing of the European
SINNFEIN.IE
Financial terrorist': Former bank
boss acquitted of all charges
despite blowing up Irish
economy
Published time: 23 May, 2017 18:05
Edited time: 26 May, 2017 13:42

Clodagh Kilcoyne / Reuters

Former Anglo Irish Bank Chairman Sean Fitzpatrick,

famously described by RTs Max Keiser as a financial
terrorist, is in the clear after being acquitted of all
charges in a long-running multi-million euro loans
case.
For almost 20 years Fitzpatrick served as chief
executive of the now-defunct Anglo Irish Bank the
third largest in Ireland and a major lender to the
construction and property sectors, the collapse of
which caused the Irish economy to implode.
Chairman of Anglo from 2005 until 2008, Fitzgerald
was a key player during the 'Celtic Tiger' era when
excess and greed became the dream for many. Its
estimated the subsequent government bailout will
eventually cost the Irish taxpayer between 34 billion
and 40 billion.
On Tuesday Judge John Aylmer at Dublin Circuit Court
in Ireland acquitted Fitzpatrick of 27 charges of
misleading the bank's auditors and furnishing false
information about multi-million euro loans to him and
to people connected to him between 2002 and 2007.

The judge strongly criticized the investigation by the Office of the

Director of Corporate Enforcement (ODCE) in his ruling, the Irish
Times reports.

Aylmer said the ODCE fell short of the impartial, unbiased

investigation that an accused is entitled to, he was cited as saying
by RTE. He added that key witnesses had been coached and the ODCE
had failed to seek out evidence of innocence as well as guilt.

He accused the office, which has the mandate to investigate

allegations of breaches of company law, of making assumptions about
Fitzpatrick.

The judge also expressed concern that material shredded by the

ODCE's chief investigator during Mr Fitzpatrick's first trial may have
been material that could have assisted the defense.

During the trial the prosecution argued that multi-million euro loans
taken out by Fitzpatrick and his family wereartificially reduced by
short term loans from other sources for a period of two weeks around
the banks financial end-of-year statement.

The prosecution alleged that he failed to disclose the extent of these

loans to the banks auditors in the years 2002 to 2007. FitzPatrick
denied all charges.

In 2014, he was found not guilty of 10 counts of providing unlawful

financial assistance to a group of investors dubbed the Maple 10 to
buy shares in the bank in July 2008.

Judge Aylmers decision was made on the 126th day of the trial
making it the longest criminal trial in the history of the Irish state. The
jury is due to return to court tomorrow morning but will be directed by
the judge to acquit Fitzpatrick.
Speaking outside court, Fitzpatrick told RTE it was a long and tiring
and difficult time for him and his family. He thanked his legal team
and expressed appreciation to the medias restraint in this current
trial.

In 2008 the Irish state issued a blanket 440 billion guarantee of all
liabilities in the crippled banking system. Fitzpatrick refused to
apologize to the Irish taxpayer who was forced to foot the bailout bill,
blaming the global recession for the circumstances. Anglo Irish was
nationalized in 2009.
Max Keiser, host of the Keiser Report, previously dubbed Fitzpatrick
along with other key figures in the Irish banking collapse financial
terrorists.
The people in Ireland are getting hammered by these financial
terrorists, he said.

We have to expand the Patriot Act, and other financial statutes around
the world, to cover financial terrorism.

To cover Sen Fitzpatrick, because clearly he qualifies. Ireland should

recognise that theyve been victimised by a terrorist attack, and need
to respond accordingly, he told The Journal ahead of a visit to Ireland
in 2011.

Jonathan Sugarman, the former Unicredit bank executive who reported

liquidity breaches during his first few weeks at Unicredit Ireland, has
led criticism of the court decision Tuesday. Sugarman says he
repeatedly warned the Financial Regulator that the Irish banking
system was facing a liquidity crisis before the financial crash.

Pat Flanagan:
Millions of reasons
why this is Crooked
Ireland
Apparently the whole country, from the Taoiseach to the tea
lady, is furious at the outcome of the Sean FitzPatrick trial

BYIRISHMIRROR.IE
15:42, 26 MAY 2017

Sean FitzPatrick

Crooked cops, crooked country... cead mile failures, welcome to Ireland.

Apparently the whole country, from the Taoiseach to the tea lady, is furious at
the outcome of the Sean FitzPatrick trial.

Even mature adults who have lived their lives in the Nigeria of the northern
hemisphere are supposedly surprised the case has collapsed.

Granted, it did come as a bit of a shock to learn vital evidence was actually
shredded by the body bringing the prosecution.
But lets face it, how many times in the past have major trials involving well-
connected people collapsed through inexplicable circumstances?

In a country where the police college is embroiled in a money laundering

scandal involving alleged ofshore bank accounts why is anyone surprised by
anything?

I have to be very careful here as the former Anglo boss has been acquitted of
all charges.

His bank may have cost the taxpayer 40billion, brought about mass
unemployment and emigration but Mr FitzPatrick did absolutely no wrong in
the eyes of the law.

Sean Fitzpatrick

His former bank may have laid low the Irish economy but Seanie can walk with
his head held high.
This week we found the corporate afairs watchdog the Office of the Director
of Corporate Enforcement which botched the handling of Sean FitzPatricks
criminal case is actually a neutered toy poodle.

This was to be the trial of the century and the public had hoped they might get
answers as to how this bank caused so much misery to so many and why no
one was held to account.

We will now never known because Kevin OConnell, a legal advisor to the
Office of the Director of Corporate Enforcement, shredded vital documents.
Sean Fitzpatrick leaves the courts complex

We will never know why the documents were destroyed because there is no
Garda investigation because thats the way things are done in Ireland.
Similarly the public was denied the right to know why Financial Regulator
Patrick Neary stood back and allowed Anglo and the other banks to engage in
the skullduggery and malpractices which led to the financial crash.

Irish soccer fans used to have a chant which went something like, Here we
go, here we go, here we go. Where white-collar crime is concerned its, Here
we go again.

Dont be fooled by the mock shock from the great and the good. For decades
they have made sure corporate crime was not taken seriously.

Way back in 2014 leading barrister Remy Farrell, a specialist in white-collar

crime, pointed out the States regulatory agencies were so stretched by an
endemic lack of resources many reports of corporate crime were not even
being read by the authorities.

He stated it was a scandal investigators were at breaking point due to the

lack of
investment allowing large-scale fraud to go undetected, costing the State
millions in lost revenue.

He said: There is now one forensic accountant working in the principal law
enforcement regulatory body in this country, adding: Its enough to make the
tin-pot dictator of a banana republic blush.

Ive said it before but this country is even more corrupt than Nigeria and
Zimbabwe. In 2015 the Social
Democrats called for an independent anti-corruption agency similar to the
ones in other EU states but their proposals were voted down by Fine Gael and
Labour.
Fine Gael leadership candidate Simon Coveney TD at the
launch of his policy document in the Dean Hotel in Dublin's
city centre

Now in the wake of the collapse of the Sean FitzPatrick trial Simon Coveney is
promising to establish such an agency if he becomes Taoiseach.

The reality is the main political parties did not want a corporate watchdog with
teeth especially when the brown envelopes were flying like confetti.

The State established the Criminal Assets Bureau to go after ordinary crooks
but why have they never gone after the white-collar
criminals?

If the well-connected are unlucky enough to be exposed they face a tribunal

which can only make findings.

Imagine, three decades of tribunals which exposed a country more corrupt

than any banana republic, yet only one conviction because of corruption.
Isnt it strange those now calling for anti-corruption agencies dont want to
hear about the Moriarty Tribunal and SiteServ is a sight for sore eyes.

Hundreds of millions of euro has been stashed away by corporate crooks in

the wake of the crash.

Not a cent has been recovered by the State and much of the loot has had to
be paid for by the taxpayer.

But then again, when the laundry at the Garda Training College was
allegedly being used to launder money why should we be surprised?

http://www.irishmirror.ie/news/news-opinion/pat-flanagan-
millions-reasons-crooked-10506149#ICID=sharebar_twitter

Whistleblowers - Jonathan Sugarman 15 11 2016

https://www.youtube.com/watch?v=fuAQO-jkjwM

Ex-banker Sean Fitzpatrick formally acquitted at Dublin Circuit

Criminal Court
24/05/2017

A judge has told former banker and bankrupt Sean Fitzpatrick

he is a free man after directing a jury to find him not guilty of
fraud.
The ex-chairman of the defunct Anglo Irish Bank had been on
trial for the last 126 days accused of "artificially reducing"
personal loans for a few weeks around the end of the financial
year so their full value was not shown in accounts.
After the longest criminal trial in Irish history, the former bank
boss, who always denied wrongdoing and pleaded not guilty,
returned to the Circuit Criminal Court in Dublin for one last
time on Wednesday morning to hear the formal acquittal.
The Office of the Director of Corporate Enforcement (ODCE),
set up in 2001 to crack down on white collar crime, has said it
fully accepts a judge's criticism of its investigation into the
former Anglo chief's loans.

The watchdog accepted witnesses were coached when giving

statements during the investigation and that their evidence
was contaminated.
Judge John Aylmer told the jury that he would not repeat a
lengthy ruling he gave in their absence on Tuesday when he
told Mr Fitzpatrick he would be acquitted.
"The prosecution having confirmed that there is nothing else
against you, you are free to go," the judge told the former bank
boss.
Mr Fitzpatrick, who was supported in court by his daughter
Sarah, said: "Thank you."
The ex-banker, who built Anglo over 30 years to become one
of the biggest lending institutions in Ireland, declined to
comment on the case as he left the courts but said he
celebrated the verdict on Tuesday night.
"I've said everything I had to say yesterday, thank you very
much," he said.
"I don't want to be rude but I'm not going to speak or make any
comment."
After being told on Tuesday that he would be acquitted, Mr
Fitzpatrick described the trial as very long, tiring and difficult.
The 68-year-old of Whitshed Road, Greystones, Co Wicklow
had pleaded not guilty to more than two dozen ofences under
company law including making a misleading, false or
deceptive statement to auditors and furnishing false
information between 2002 to 2007.
Judge Aylmer gave the jury a brief outline of why he was
directing the not guilty verdict.
"If any of you have been reading the newspapers or the
internet contrary to my admonitions I can forgive you in that
regard," he said.
"I've made a decision in a matter of law that the prosecution
has not established a sufficient case to go to the jury."
The judge said: "The thrust of what I've decided is that there
was an investigation of the charges against Mr Fitzpatrick
which fell short of that which an accused person is entitled to."
He added: "There are shortcomings in the evidence in relation
to each of the charges which meant that there was an
insufficient case."
The jurors, who heard the case over eight months, have been
excused from jury service for life.
The ODCE said it accepted witnesses from auditors Ernst and
Young were coached while making statements and their
evidence was contaminated.
The former banker's acquittal sparked criticism from
opposition politicians over the handling of the investigation,
including a call for the head of the agency Ian Drennan to
resign.
The Director of Public Prosecutions, which does not normally
discuss the outcome of cases, declined to comment.
This was the second time Mr Fitzpatrick stood trial over his
personal loans from Anglo.
The first case collapsed in 2015 after it was disclosed that
documents held by the ODCE had been shredded by one of
its officials.
Mr Fitzpatrick was previously found not guilty by a jury after
being charged over multi-million loans that Anglo gave to
major clients, known as the Maple 10, to buy shares in the
bank as its stock market price collapsed.
Anglo went bust eight years ago and cost the Irish state about
29 billion.

The Director of Corporate Enforcement said it will prepare,

with the highest priority, a report into the collapse of the Sen
Fitzpatrick trial.
But it is seeking from transcripts of the trial as it says it was
excluded from much of the proceedings.
Earlier Taoiseach Enda Kenny told the Dil it was not
acceptable that such a major trial would collapse because of
under-resourcing.
And Fine Gael leadership contender Leo Varadkar said he
believes some form of inquiry may be necessary.
I do absolutely share the concerns of the public about how
the investigation was handled and the reasons as to why the
judge ordered an acquittal.
I do think we will need an examination as to how this went
wrong and why those mistakes were made by the ODCE
(Office of the Director of Corporate Enforcement).

The Office of the Director of Corporate Enforcement (ODCE)

has said it fully accepts a judge's criticism of its investigation
into the former chairman of Anglo Irish Bank after he was
acquitted of misleading auditors.
Sean FitzPatrick was on trial for the last 126 days accused of
"artificially reducing" personal loans for a few weeks around
the end of the defunct bank's financial year to avoid their full
value being shown in accounts.
After the longest criminal trial in Irish history, the former bank
boss was told the jury will be given a direction to find him not
guilty at a hearing in the Circuit Criminal Court in Dublin on
Wednesday morning.
The Office of the Director of Corporate Enforcement (ODCE)
said it accepted witnesses were coached when giving
statements during the investigation and that their evidence
was contaminated.
It also admitted that other documents held by the watchdog
were shredded by one its own officials. He was said to be
under enormous stress at the time.

"Those actions clearly should not have occurred," the ODCE

said.

Mr FitzPatrick, who has always denied wrongdoing and

pleaded not guilty, walked from the Criminal Courts of Justice
complex in Dublin holding his daughter Sarah's hand after
being told that he was being acquitted.
"I want to say it was a very long and tiring and difficult time for
my family and myself and thankfully today the trial is over," he
said.
Mr FitzPatrick thanked his legal team by name and added: "As
you can appreciate it's a wonderful day for me and my family. I
appreciated the media's restraint in this current trial and I
would hope that my privacy and that of my family is respected
over the coming days."
The ODCE said it accepted that witnesses from auditors Ernst
and Young were coached while making statements and that
their evidence was contaminated.
In a lengthy statement following Mr FitzPatrick's acquittal, the
ODCE also said there were "serious failures" in its
investigations into the former banker's personal loans.
"It is clear at this remove that, at that time, the ODCE was
simply not equipped to undertake parallel investigations on the
scale involved," the watchdog said.
It said the witness statements were taken by "civilian staf".
"Regrettably however, none of those individuals had any
training or experience of taking witness statements," the
ODCE said.
"Moreover, the inappropriateness of the approach that was
subsequently adopted in obtaining those statements was not
sufficiently appreciated nor were the attendant risks responded
to appropriately."
The ODCE said it has undergone "substantial organisational
change" over the last eight years.
It said: "It is a very diferent organisation to what it was."
Mr FitzPatrick of Whitshed Road, Greystones, Co Wicklow had
pleaded not guilty to more than two dozen ofences under
company law, including making a misleading, false or
deceptive statement to auditors and furnishing false
information between 2002 to 2007.
The former banker's acquittal sparked criticism from
opposition politicians over the handling of the investigation.
Pearse Doherty, Sinn Fin's finance spokesman, claimed
fraud investigators in Ireland were under-resourced.
Alan Kelly, Labour Party deputy leader, called for an
independent inquiry into the ODCE's handling of the case.
The Director of Public Prosecutions declined to comment on
the outcome of the case.
Mr FitzPatrick went on trial last September. Proceedings were
scheduled to end by Christmas but it was delayed by weeks of
legal argument in the absence of the jury and only began
hearing evidence in December.
http://www.breakingnews.ie/ireland/ex-banker-sean-fitzpatrick-
formally-acquitted-at-dublin-circuit-criminal-court-790984.html
In light of the latest embarrassment the Irish People had to endure this might
help to will shed some light on #Irelands #Ethical #Culture
They hang the man and flog the woman that steals the goose from off the
common, but let the greater villian loose... #Anglo #Jobstown #RTEPT

A judiciary & DPP that are not beholden to politicians & bankers. Simple
INTEGRITY. What say you KB?

Seanie Fitzpatrick, whose fraudulent

Anglo bank almost bankrupted the 26
Counties, has been acquitted of all
charges. One law for the rich.
Ireland's white-collar
watchdog is suffering from
a chronic staff shortage
There has been a 25% reduction in
the number of staf at the ODCE in
the past six years.

BY THEJOURNAL.IE STAFF

FEBRUARY 16TH 2017 2 MIN READ

IRELANDS CORPORATE WATCHDOG is

sufering from dangerously low staffing
levels, according to a TD.
The Office of the Director of Corporate
Enforcement (ODCE) has seen a 25%
reduction in staffing levels in the past six
years, per the result of a parliamentary
question submitted by Fianna Fil justice
spokesman Niall Collins.
The number of garda working at the ODCE
has been halved during that time, from 10 to
five.
A staf complement of seven garda are
assigned at all times to the ODCE to assist
with its criminal investigations and
prosecutions.

Minister for Jobs Mary Mitchell OConnor said

that director Ian Drennan has requested of the
Garda Commissioner that the two current
senior vacancies in those roles be filled as a
matter of urgency.
The number of garda at the ODCE topped out
in the years after the economic crash as
investigations into the goings-on at Anglo Irish
Bank took centre stage.
Overall, the number of people working at the
ODCE has reduced from 53 to 40 since 2010,
a reduction of 26%.

Source: Department of Jobs

Click here to view a larger image

The ODCE requires both legal, law
enforcement and accountancy expertise to
fulfil its role, said Collins, reacting to the
figures.
The trend since 2010 has been to see a
reduction in staffing support. Its
disturbing, and it must end now.
Last year, Fora reported that the amount spent
by the OCDE was less than half of the
Oireachtas office supplies budget.
Of the agencys 5.1 million budget for
2015, only 3.1 million was actually spent. Job
vacancies accounted for a large part of that
spending gap.
The agency did not reply a request for
comment on this matter at the time of
publication.
The ODCE was set up in 2001 and has a
broad role concerning both compliance with
and enforcement or corporate law in Ireland.
It has been in the news most recently
regarding the court case taken against
former Anglo chairman and chief executive
Sen Fitzpatrick, when it emerged that one of
the ODCEs two legal advisers had shredded a
tiny proportion of legal documents regarding
the case in April 2015.
Comments are closed for legal reasons
https://fora.ie/odcestaffshortage23242415Feb2017/?utm_source=twitter
Gardai worked with the ODCE on the Sean Fitzpatrick case. It's estimated 30
Garda worked on Operation Mizen regarding Water Protestors.
Jonathan Sugarman: Ireland has
destroyed the lives of
whistleblowers
Ex-Unicredit executive says my life has been utterly destroyed because I did
the right thing

Thu, Apr 13, 2017, 11:30 Updated: Thu, Apr 13, 2017, 11:31
Charlie Taylor

Appearing before the Joint Committee on Finance on Thursday, Jonathan Sugarman has said that
Ireland has 'destroyed the lives of every single whistleblower.' Video: Oireachtas

Share to FacebookShare to TwitterShare to Email AppShare to LinkedI n

Irelandhasabsolutelyandcompletelydestroyedthelivesofeverysingle
whistleblowerthathasdaredrevealirregularitiestoofficials,aformerbanking
executivewhoreportedliquiditybreachesattheIrishunitofUnicreditBankin
2007hasclaimed.

AppearingbeforetheJointCommitteeonFinanceonThursday,Jonathan
SugarmanalsosaidifformerbankingregulatorPatrickNearyhadbeendoinghis
jobproperlyintermsofmonitoringthebanks,therewouldhavebeennoneedto
issueablanketguaranteeinSeptember2008thatledtothecountrybeingsaddled
witha64billiondebt.

MrSugarmanwasappearingbeforethejointcommitteeasitcontinuesits
examinationofthebankingsectorwithaspecificfocusonregulatoryreformand
riskappraisal.HisappearancecoincideswithareportissuedbytheCentral
Bankearlierthisweekcriticisinganumberofinternationalbankswithoperations
hereforhavingweakregulatoryreportingcontrolenvironments.

MrSugarman,aformerUnicreditBankIrelandriskmanager,hasrepeatedly
claimedhisalertstosuperiorsandtheCentralBankaboutthelendersbreachesof
liquidityrequirementsinearly2007wentunheeded.Hesubsequentlyresignedhis
positioninSeptemberthatyearandhasbeenunabletofindemploymentever
since.
http://www.irishtimes.com/business/financial-services/jonathan-sugarman-

ireland-has-destroyed-the-lives-of-whistleblowers-1.3047366
Lobbyists leave their sordid prints... 'which are intended to protect investors
and make markets more transparent'
FitzPatrick free to go
after being formally
acquitted of all charges
Updated / Thursday, 25 May 2017

Sean FitzPatrick has been formally acquitted on all 27 counts

against him
Sean FitzPatrick has been formally acquitted by a
jury at the Dublin Circuit Criminal Court on all 27
counts against him.
Yesterday, Judge John Aylmer ruled that he would be
directing the jurors to acquit Mr FitzPatrick, who had
pleaded not guilty to misleading Anglo's auditors
about loans to him and people connected with him.
The judge told the jurors he would forgive them if they
had been reading newspapers or the internet about
the case in these circumstances.
He said he had made a decision based on law that
the prosecution had not established a sufficient case
to go to a jury.
He said the thrust of his ruling was that the
investigation fell short of the investigation an accused
person was entitled to.
He said the upshot was that the prosecution had not
proved the case to the standard required that would
have allowed him to let the charges go to the jurors
for them to decide the matter.
Before the jurors could formally acquit, they had to be
reduced in number from 13 to 12.
An enlarged panel of 15 had been sworn in to hear
the case because of its length and complexity and
Judge Aylmer said it was quite extraordinary that 13
still remained.
One juror's name was drawn from a biscuit tin and
she had to leave court.
The jury forewoman signed the issue paper on which
the court registrar had written "not guilty by direction
of the judge" next to all the charges.
Judge Aylmer excused the jurors from jury service for
life.

The judge thanked the jurors for their attendance and

 for giving eight months of their life to this trial.
He said he expected that some of them would be
disappointed at the way it had panned out but he said
a trial could not proceed without a jury and they were
an essential part of the process.

Read more:
f Sean FitzPatrick acquitted on all charges
f Inside story of the prosecution of Sean
FitzPatrick
f The banking chief who provoked public ire
f Sean FitzPatrick investigation, the ODCE
f Judge Aylmer's full ruling

Senior Prosecuting Counsel Dominic McGinn said

there were still six outstanding counts against Mr
FitzPatrick which had been separated from the
others. But he said the DPP would not be proceeding
with those charges.
Judge Aylmer told Mr FitzPatrick the prosecution had
confirmed there was nothing else against him and he
told him he was free to go
https://www.rte.ie/news/ireland/2017/0524/877556-
sean-fitzpatrick/
Dear @centralbank_ie, I suppose both I and Seanie Fitz are wondering what
"credible threat of enforcement" looks like?
Trial collapse a
'damning indictment' of
ODCE
Updated / Wednesday, 24 May 2017
Michel Martin said the handling of the case shattered public
confidence in the handling of white collar crime
Fianna Fil leader Michel Martin has said the
collapse of the trial of Sean FitzPatrick is a "damning
indictment" of the Office of the Director of Corporate
Enforcement.
Speaking in the Dil, Mr Martin also said the
development reflected poorly on garda.
Mr FitzPatrick has been formally acquitted by a jury at
the Dublin Circuit Criminal Court on all 27 counts
against him.
Judge John Aylmer ruled yesterday that he would be
directing the jurors to acquit Mr FitzPatrick, who had
pleaded not guilty to misleading Anglo's auditors
about loans to him and people connected with him.
He said he had made a decision based on law that
the prosecution had not established a sufficient case
to go to a jury.
Mr Martin said the handling of the case shattered
public confidence in the handling of white collar
crime.
Taoiseach Enda Kenny said he agreed with Mr Martin
and said the ODCE themselves had pointed out that
they had undergone substantial change.
He said the Dil had to make a decision about what
to do with the organisation.

Mr Kenny also said it would not have been possible

for the Government to intervene when the case was
under way.
Also speaking during Leaders Questions, Sinn Fin
leader Gerry Adams said the staf of the ODCE had
been cut previously from 42 to 35.
He said the Government spends 5m on the ODCE -
by contrast 17m was spent on our membership of
the European Space Agency.
"Doesn't that show where your priorities lie?" Mr
Adams asked.
He said the Government should follow international
best practice and replace the office with a robust
agency underpinnned by legislation.

Earlier the co-leader of the Social Democrats, Risn

Shortall, said white collar crime needs to be taken
seriously and there is a need for an independent anti-
corruption agency to replace the ODCE.
Speaking on RT's Morning Ireland, Deputy Shortall
said the ODCE has clearly been under-resourced
since its establishment, but that this does not excuse
what happened during the FitzPatrick trial yesterday.
Ms Shortall said the mal-administration displayed by
the ODCE was of "the most serious kind" and also
involved their auditors and legal team.
She added that it was the third occasion on which Mr
FitzPatrick has been acquitted, or a trial has
collapsed.
Ms Shortall said no priority appears to have been
given to the enforcement of the law in respect of
white collar crime.
She said if people were to have confidence in the rule
of law, in respect of both company and criminal law,
then a new investigation and enforcement regime
was needed.
In addition, she pointed out that other cases have
been neglected while the ODCE investigated Anglo.
ODCE accepts criticisms but says practices have
changed
In a statement, the ODCE said it accepted a number
of criticisms of the investigation from the trial judge,
but pointed out that the practices dated back to 2009
and had since been overhauled.
It said the office was not equipped at the time to
undertake parallel investigations on the scale
involved.
It added that "serious failures" resulted in statements
from two witnesses central to the prosecution being
taken by civilian staf, none of whom had experience
or training in taking witness statements.
It also accepted the judge's ruling that both witnesses
were coached by the ODCE and that, as a result,
their evidence was contaminated.
The statement said the shredding of documents by
an ODCE staf member should not have occurred.
However, it said the events took place at a time when
the staf member concerned was under enormous
stress and "against a backdrop of significant mental
health issues."
The statement pointed out that the organisational
structures of the ODCE had undergone significant
change in recent years following the appointment of a
new director in the latter half of 2012.
It said staffing capabilities had been considerably
enhanced through the recruitment of several
investigative accountants as well as a digital
forensics specialist and members of An Garda
Sochna taking the lead on all criminal
investigations.
It also pointed to a number of successful
investigations in recent years, related to Anglo, that
resulted in convictions.
In a further statement this evening, the ODCE said it
was preparing, with high priority, a report on the
issues arising from the investigation at the request of
the Minister for Jobs, Enterprise & Innovation.
However, it said it was not in possession of complete
information as regards all aspects of the trial as
ODCE personnel were excluded from large portions
of the trial on the direction of the trial judge.

The ODCE has requested the Office of the Director of

Public Prosecutions to furnish it with full transcripts of
the trial so that it can complete the report
expeditiously.

https://www.rte.ie/news/business/2017/0524/877584-
odce-needs-to-be-replaced-shortall/

The High Court has squashed a bid to stop the state's 3bn AIB share sale

A judge called the attempt frivolous, vexatious

and bound to fail.
BY AODHAN O'FAOLAINMAY 26TH 2017

THE HIGH COURT has struck out a

businessmans bid to prevent the sale of
shares held by the government in AIB bank.
In his judgment today, Justice Paul Gilligan
said he was satisfied proceedings brought by
Vincent ODonoghue to prevent the sale of the
shares could not succeed.
In proceedings against AIB, the Minister for
Finance, the government, Ireland and the
attorney-general, ODonoghue, who
represented himself, sought a declaration that
the proposed sale is contrary to the common
good and is unlawful.
In his ruling the judge said a court should
rarely dismiss claims at an early
stage. However allowing ODonoghues action
proceed would constitute an abuse of process
of the court.
The claims, the judge added, were frivolous,
vexatious and bound to fail.
The court also said it was satisfied to strike out
ODonoghues application for an injunction
preventing the defendants from taking any
steps to dispose all or any parts of the states
shareholding in AIB pending the final outcome
of his action.
The state parties had opposed the injunction
application and had brought preliminary
motions seeking to have ODonoghues
proceedings dismissed.
In his claim, ODonoghue said AIBs long and
sorry history of catastrophic governance
failures demonstrates that the bank is
incapable of operating in a lawful, responsible
and complaint manner.
He gave examples of AIBs past difficulties,
including: ICI in the 1980s, rogue trader John
Rusnak, non-resident deposit accounts,
foreign exchange overcharging and the states
2009 21.8 billion bailout.
He claims that if returned to private ownership
AIB will only serve one master and have the
sole focus of relentlessly pursuing profits for
mostly foreign shareholders.
In dismissing the application for the injunction,
the judge said that no claim had been made
out against AIB, which he said had no direct
influence on whether the minister sells the
shares or not. While AIB supports the
proposed sale of 25% of the company, it does
not have any control over it.
A complex IPO
ODonoghue, of Church Street, Dublin 7, had
failed to show any legal impediment requiring
the state to hold on to its current level of
shareholding with AIB.
The court could not entertain an issue such as
the sale of the governments shares in AIB. It
was not open to the courts to entertain a case
which related matters of political economy,
the judge said.
The state currently owns more than 99% of the
bank recently valued at 11.3 billion. To
date, the state has recouped 6.6 billion of the
money put into AIB. It is the governments
policy to return AIB to private ownership.
Evidence was given that the minister might sell
up to 25% of his shareholding before the end
of 2018, the judge noted.
It is proposed to sell part of the shareholding
by way of an IPO on the Irish and London
stock exchanges. Evidence was given that
preparation for this is a complex and not
something that one can stop and start, the
judge said.
If the orders sought by ODonoghue were
granted, the judge said it was the defendants
belief a potential optimal market window
would be lost and a very considerable
amount of the public money will have been
spent on an abortive process.
The defendants argued that capital markets
appear to be currently receptive to an IPO and
it was imperative that the minister for finance
maintains the utmost flexibility to begin and
execute an IPO in the first possible window of
May-June 2017.
The judge said ODonoghue had claimed he
was making an argument in the interests of the
common good.
However he had not produced any evidence to
support his claim that it is for the common
good that the sale of the Ministers shares
should not proceed.
To grant the reliefs sought by ODonoghue, the
judge added, would run completely contrary to
the restructuring arrangements in place
between the government and the European
Commission.
ODonoghue was not at any financial risk from
the proposed sale, while the defendants said
they would sufer damages that might range
from between extreme and incalculable if the
injunction was granted.
The matter was adjourned for four weeks to
allow the sides consider the judgment.

https://fora.ie/aib-share-sale-court-3411303-May2017/?
utm_source=twitter
Jonathan Sugarman @WhistleIRL
Ex- #Anglo chair Sean FitzPatrick acquitted of all charges on day 126 of trial
ONLY in #Ireland!#JonathanSugarmanhttp://jrnl.ie/3404388

12:13 PM - 23 May 2017

Allied Irish Banks : Minister for Finance Statement on Dail Votes

05/19/2017

DUBLIN, May 18 -- The Ireland Department of Finance issued the following news release:

The Minister for Finance Michael Noonan T.D. notes today's votes in the Dail on the various
motions in relation to proposed changes to the fiscal rules with a proposed consequential
delay of a sale of a stake in Allied Irish Banks. He notes that Labour's Private Members
Motion was passed by the Dail.

Private Members Motions are not legally binding on the Government and the Government's
position was set out by the Minister in the Dail debate on these motions last week. The
Government position remains unchanged. The Programme for a Partnership Government
clearly allows the Minister to sell up to 25 percent (plus greenshoe) of Allied Irish Banksup to
the end of 2018. The Minister has consistently stated that any sale of Allied Irish Banks will be
based on advice from his officials and advisers based on market conditions and maximising
value for the taxpayer.

Targeted News Service, source News Service

http://www.4-traders.com/ALLIED-IRISH-BANKS-PLC-1412357/news/Allied-Irish-Banks-
Minister-for-Finance-Statement-on-Dail-Votes-24454324/

Finance Michael Noonan T.D. notes todays votes in the Dail on the various motions in
relation to proposed changes to the fiscal rules with a proposed consequential delay of a
sale of a stake in Allied Irish Banks
Jonathan Sugarman
4 hours ago
More

Y was 's bank in discussd in prlmnt ther, but never in Dal?

WHO got paid 2 shut up?
might know
Can't wait for @AbbeyTheatre to stage a play about @centralbank_ie,
#DEPFA, #Anglo, #UniCredit. Sponsored by #KPMG? #JonathanSugarman
.@joanburton 'does' indignation at
#WhiteCollar crime &
#JobstownNotGuilty really well, but fel
silent abt me #Anglo

JONATHANSUGARMANABANKERSPEAKS
OUT___________
In Sept. 2007, fourteen months before Ireland's bank bailout, I
resigned from my position as the Risk Manager of UniCredit Bank
Ireland. I did that in order not to incriminate myself. I have spent
the last 4 years seeking justice. On Feb. 23rd., 2010, I was
fortunate to have Senator David Norris raise the matter in Seanad
Eireann (the Irish Senate), and request a response from the
Minister of Finance, Mr. Brian Lenihan. Senator Norris concluded
by stating that:
"...there is ministerial responsibility in this matter. This is a grossly
serious matter which has been reported to the Financial Regulator.
A man has lost his job as a result. He honourably resigned. The
degree of breach was 40 times the accepted margin. This is a
disaster. If we are not prepared to face the issue and
investigate it when it has been laid before the House,
there is absolutely no hope for the financial system or its
reputation worldwide...How can the Financial Regulator
investigate himself? He was in breach of his
responsibility."
http://debates.oireachtas.ie/seanad/2010/02/23/00012.asp
In Nov. 2011, Emma Alberici, Europe correspondent for ABC TV,
told my story as part of her documentary 'Going Rogue' which
featured Nick Leeson and Sir John Vickers among other
interviewees. It is ironic that at a time when the Irish tax-payer is
bailing out un-secured bond holders, my story which occurred in
Dublin, is deemed of interest to the Australian TV license payer.
Please click on 'play video' on the following link:
http://www.abc.net.au/foreign/content/2011/s3367080.htm
VRT, Belgian state-TV, aired this interview with me on March 6th.,
2013. My Interview begins in minute 27:
Het verdriet van Europa: Zeepbellen blazen (The sadness of
Europe: Bursting bubbles)
http://www.deredactie.be/cm/vrtnieuws/videozone/programmas/
hetverdrietvaneuropa/2.27204
VRT, Belgian state-TV, released extra footage of my interview on
March 8th., 2013. (in English):
http://www.youtube.com/watch?v=HKmr2u2P4OE
Whistleblower.IRL@gmail.com

Sunday, 28 November 2010

Open Letter to Deputy Joan Burton

Dear Deputy J. Burton,

I am most grateful to you for raising this issue in the Dil (Parliament) on
Thursday last week (Nov. 25th 2010).

I welcomed your assistants invite to comment on the reply you received from
the Minister of Finance, Mr. Brian Lenihan.

In view of the turbulent events of the last ten days, I firmly believe that now,
more than ever before, it is in the publics interest to be made aware of this
affair. I have therefore decided to reply to your assistants request in this open
and public platform of the internet.

For the benefit of the readers, I have begun by quoting your question in
the Diland the ministers reply to it. Following that, I have parsed the
ministers reply (orange font) and inserted my comments (white font).

I trust that my comments will assist you in your quest to reveal the facts of the
matter. It is in all our interests that the whole truth of this affair should come
to light as soon as possible.

Should I be of any further assistance to you, please contact me so that we can

arrange to meet again.

Yours sincerely,
Whistleblower.Irl@gmail.com

-------------------------------------------------------------------------------------------

DIL QUESTION [http://debates.oireachtas.ie/dail/2010/11/25/00090.asp]

NO 86

To ask the Minister for Finance if his attention has been drawn to reports (details
supplied) of major breaches of financial regulations in respect of liquidity
requirements by a significant financial institution in the International Financial
Services Centre; the actions he has taken on foot of these reports; if he has discussed
these reports with the Financial Regulator, the Central Bank Governor, the Office of
the Director of Corporate Enforcement or any other relevant authority; if a full
investigation has been carried out, or is ongoing, to ascertain the veracity of these
reports; if he envisages the introduction of new legislation, regulations or enforcement
measures to ensure that breaches of this nature do not take place in the future; and if
he will make a statement on the matter.

- Joan Burton.

* For WRITTEN answer on Thursday, 25th November, 2010.

Ref No: 44557/10

Senator David Norris, Seanad Eireann Debate on Financial Regulation, 23rd February,
2010; http://debates.oireachtas.ie/seanad/2010/02/23/00012.asp

Fintan O'Toole, Irish Times, 3rd April 2010;

http://www.irishtimes.com/newspaper/weekend/2010/0403/1224267604942.html

Martin Hesse, Sddeutsche Zeitung, 23rd April 2010;

Kathleen Barrington, Sunday Business Post, 16th May 2010;

http://www.thepost.ie/story/eysncwauoj/

REPLY

Minister for Finance ( Mr Lenihan) : The Deputy may wish to note that the
supervision and oversight of liquidity requirements for credit institutions is a
regulatory matter for the Central Bank of Ireland. The Central Bank of Ireland is
subject to strict confidentiality requirements under the EU Supervisory Directives and
consequently does not share information on specific regulatory issues with my
Department unless the issue gives rise, for example, to some broader financial
stability issue in respect of which the Minister should be informed.
These circumstances did not arise in this instance. However, in response to the
Deputys question my Department has been informed by the Central Bank of Ireland
that an overnight liquidity breach was reported by an institution at the time referred to
in the reports enclosed with the Deputys question. The Central Bank followed up on
this liquidity breach with the institution, which rectified the position to the satisfaction
of the Central Bank at the time. The Central Bank also required an external review of
liquidity reports submitted to it and the related control environment. This review did
not identify material issues relating to breaches of the required liquidity ratios, other
than on the date highlighted by the institution.
The Central Bank imposes liquidity risk management requirements on all credit
institutions. These are set out in Requirements for the Management of Liquidity
Risk, which are available to download from www.financialregulator.ie. Compliance
with these requirements is monitored by a combination of on-site and off-site review
and inspections. All credit institutions are required to complete an annual internal
audit review and submit this report to the Central Bank on compliance with the
Requirements. In addition, Section 47 of the Central Bank Act, 1989, provides that
where a credit institution's external auditor has reason to believe there are material
defects in the financial systems and controls or accounting records of an institution or
has reason to believe that there are material inaccuracies in or omissions from any
returns of a financial nature submitted to the Central Bank, they are required to notify
the Central Bank without delay.
The Central Bank of Ireland has confirmed that this matter has now been fully
investigated and the Central Bank is satisfied that all liquidity risk management
requirements have been complied with and appropriate steps necessary to prevent any
recurrence of this issue have now been taken by the institution concerned.
MY COMMENTS TO MINISTER LENIHANS REPLY

Minister for Finance ( Mr Lenihan) : The Deputy may wish to note that the
supervision and oversight of liquidity requirements for credit institutions is a
regulatory matter for the Central Bank of Ireland. The Central Bank
of Ireland is subject to strict confidentiality requirements under the EU
Supervisory Directives and consequently does not share information on specific
regulatory issues with my Department unless the issue gives rise, for example, to
some broader financial stability issue in respect of which the Minister should be
informed.

Firstly, the Minister is correct in citing confidentiality

requirements imposed on the actions taken by the
Central Bank of Ireland. However, confidentiality does
not apply to the manner in which the Central Bank fulfils
its purpose under Irish law. The prompt departure of
Governor Neary from office is an example of that.

Secondly, according to the Regulators own regulation, a

materiality of a breach is defined as:

4.3 Materiality -
Credit institutions may apply a materiality test to
cash flows. The Financial Regulator proposes to
adopt a materiality benchmark of 1 per cent of
the gap ratio in each timeband.

The breach reported to the Regulator exceeded the

Regulators own benchmark by 1900% (one thousand
and nine hundred percent), and amounted to billions of
Euro. Given the States recent requests for ECB & IMF
funding on account of liquidity deficiencies throughout
the entire Irish banking system, can the Minister confirm
that his office was notified of this breach at the time that
it occurred? Can the Minister please advise the House
what scale of breach would he deem to be of
significance to broader financial stability?
These circumstances did not arise in this instance.

Is the Minister satisfied that breaches of this magnitude, which

amounted to billions of Euro in this case, should not have been
brought to the immediate attention of the Minister? On what basis
was the regulator able to ascertain that These circumstances did
not arise in this instance.?

In his response to Senators Norris address to the Seanad on 23 Feb.

this year, Minister Lenihan stated that The Financial Regulator
maintains close communication with the regulators of other member
states for this purpose. Given this statement and the
incomprehensible magnitude of the breach which was reported to
the Regulator in late July or early August 2007 according to
Senator Norris statement, can the Minister confirm that the relevant
European regulator was indeed notified of the liquidity breach at the
offending bank? No doubt, it would have been in the interest of all
parties concerned to ensure that both the parent company and its
corresponding regulator would have been informed of this breach.

If the relevant European regulator was notified of this breach, what

was his response? Is there any legal impediment for the Minister to
inform the House what were the consequences of the
communication with the relevant Regulator?

On the other hand, if, in contrast to the Ministers statement above,

the relevant European regulator was not notified about this major
breach at the bank in question, can the Minister explain the reason
for breaking with his stated policy?

However, in response to the Deputys question my Department has been

informed by the Central Bank of Ireland that an overnight liquidity breach was
reported by an institution at the time referred to in the reports enclosed with the
Deputys question. The Central Bank followed up on this liquidity breach with
the institution, which rectified the position to the satisfaction of the Central Bank
at the time.

Whistleblower, whose position as the offending banks Risk Manager

had been ratified by the banks board of Directors, attended the
office for at least six weeks after he notified the Regulator of said
breach. Apart for the acknowledgement of the letter he handed to
Regulators office informing him of the breach, no further
communication was received from the Regulators office during this
six weeks period. Can the Central Bank advise in what way he had
followed up on this liquidity breach?

An elementary aspect of financial risk management is the practice

of daily liquidity forecasting. According to the Regulators own
directive it is essential that both the qualitative and
quantitative liquidity requirements are met on an on-going
basis.(Section 1.4). Does the Minister not find it puzzling that a
breach of such magnitude could occur over-night. In what way was
The Regulator able to ascertain that this breach was not the
culmination of an un-monitored or un-reported deteriorating liquidity
situation? How was the Regulator able to confirm that the offending
bank was immediately able to rectify the situation?

The Regulators liquidity management requirements also stipulate

that Each credit institution must have a management
information system that is adequate to measure, monitor,
control and report liquidity risk considering the nature, size
and complexity of the credit institution. (Section 3.4) How
was the Central Bank able to satisfy itself that the flagrant breach
of which it was notified was not an indication of a continuous
malfunctioning of the banks Management Information Systems
(MIS)?

Can the Minister shed some light on the involvement of the London-
based IT consultancy which was brought into the bank to review its
MIS according to Senator Norris? As there is written proof of this
companys alarming opinion of this MIS system, and given that this
company was, and has been, put in charge of similar systems in
Irish banks that have since then been guaranteed/nationalised by
the state, is the Minister of the opinion that this IT company simply
got it wrong in the case of the bank at which Whistleblower
worked?

The Central Bank also required an external review of liquidity reports submitted
to it and the related control environment. This review did not identify material
issues relating to breaches of the required liquidity ratios, other than on the date
highlighted by the institution.

Can the Minister please inform the House who carried out the
external review? What were the findings of the external review? As
Senator Norris stated, the significant liquidity breaches continued on
a regular basis after the 20% breach had been reported to the
Regulator. Senator Norris also mentioned having met a senior
banking executive who attested to Whistleblowers account of
events. Therefore, how does the Minister explain the absence of any
further findings by this external review?

The Central Bank imposes liquidity risk management requirements on all credit
institutions. These are set out in Requirements for the Management of Liquidity
Risk, which are available to download from www.financialregulator.ie.

We have indeed downloaded the relevant documents from the

Regulators website.

Requirements for the Management of Liquidity Risk,

June 2006:
http://www.financialregulator.ie/industry-sectors/credit-institutions/supervisory-

disclosures/Documents/Requirements%20for%20Management%20Liquidity%20Risk.pdf

Requirements for the Management of Liquidity Risk, June

2009:
http://www.financialregulator.ie/industry-sectors/credit-institutions/Documents/Requirements%20for

%20management%20liquidity%20risk%20June%202009%20Final.pdf
 Can the Minister please explain why the liquidity requirements
document issued in June 2009 refers to the already-existing liquidity
regulations as new in section 1.3, despite the fact that they had
already been published in 2006? How does the Minister explain the
fact that the legal basis (section 1) in the 2009 makes reference to
Central Bank Acts dating as far back as 1942, but yet nowhere in
this entire document is there a reference to the 2006 document?
How does the Minister explain the disappearance of Section 9.4
Implementation from the 2009 document? Did the Financial
Regulator retract the 2006 requirements? If so, when did he do so?

Both documents include Section 10 Penalties. This section states

that:

...In particular, section 58 of the Central Bank Act of 1971,

which refers to Offences and punishments, as amended by
the substitution of section 9 of the Central Bank Act, 1989,
states that a holder of a licence who commits by act or
omission a breach of a condition duly imposed and which
relates to a licence shall be guilty of an offence and shall be
liable-

(i) on summary conviction, to a fine not exceeding 1,000 or, at

the discretion of the court, to imprisonment for a term not
exceeding 12 months, or to both, or
(ii) on conviction on indictment, to a fine not exceeding 50,000
or, at the discretion of the court, to imprisonment for a term
not exceeding 5 years, or to both,

....Section 60 of the 1971 Act contains an extension of the

offending provisions. This states: Where an offence under
this Act is committed by a body corporate or by a person
purporting to act on behalf of a body corporate or an
unincorporated body of persons and is proved to have been
so committed with the consent or approval of, or to have
been facilitated by any wilful neglect on the part of, any
director, manager, secretary, member of any committee of
management or other controlling authority of such body or
official of such body, such person shall also be guilty of the
offence.
In Minister Lenihans response to Senator Norris which was read out
by Deputy Brady on 23 February 2010, Minister Lenihan stated
that Breaches of liquidity requirements may be subject to
proceedings under the Financial Regulators administrative
sanctions procedure or to prosecution.

In view of Ministers statement in the Seanad and the regulations

and banking acts cited by the Regulator, can the Minister explain
how and why was it determined that no administrative sanction
procedures or prosecutions were to be initiated in the case of the
bank where Whistleblower had worked?

In view of the well documented collapse of Hypo Real Estate in

Germany due to the failing of Depfa its Irish subsidiary, and the
repeated cash injections of Irish tax payers money by the Ministers
government into Irish banks on account of their failure to meet
liquidity requirements, can the Minister inform the House how many
cases of administrative sanctions and/or prosecutions have been
initiated against banks and their executives in Ireland?

Can the Minister inform the House how many incidents of liquidity
breaches have been recorded by the Regulator which have not
resulted in sanctions? (A law unenforced is a law ignored.) Can
Minister state how many institutions breached liquidity requirements
since he came to office? what was the average percentage of the
deviation of these breaches from the minimum threshold required
by the Regulator? What was the average amount of these
breaches? Can the Minister describe what factors have influenced
the Regulators decision not to prosecute?

Compliance with these requirements is monitored by a combination of on-site

and off-site review and inspections.
As the Minister has made inquiries with the Central Bank after
receiving this question last week, he would no doubt be able to
inform the House when the on-site and off-site reviews and
inspections were done in 2007 at the bank in which Whistleblower
worked. Can the Minister please inform the House of the dates of
these inspections and their subsequent findings?

All credit institutions are required to complete an annual internal audit review
and submit this report to the Central Bank on compliance with the
Requirements. In addition, Section 47 of the Central Bank Act, 1989, provides
that where a credit institution's external auditor has reason to believe there are
material defects in the financial systems and controls or accounting records of an
institution or has reason to believe that there are material inaccuracies in or
omissions from any returns of a financial nature submitted to the Central Bank,
they are required to notify the Central Bank without delay.

Can the Minister inform the House if/when did external auditors act
in accordance with Section 47 of the Central Bank Act, 1989 in
relation to any of the Irish banks that were covered by the state
guarantee which was introduced in September 2008?

In relation to the bank at which Whistleblower worked, how was the

Central Bank able to confirm that both the banks internal auditors,
and its external auditors, have been conforming to the Central Bank
Acts cited above?

The Central Bank of Ireland has confirmed that this matter has now been fully
investigated and the Central Bank is satisfied that all liquidity risk management
requirements have been complied with and appropriate steps necessary to
prevent any recurrence of this issue have now been taken by the institution
concerned.

Given the above statement that this matter has now been fully
investigated and the Central Bank is satisfied etc, can the Minister
explain why the specific and severe allegations raised by Senator
Norris nine months ago have not been addressed by the Minister at
the Dail (parliament), or the Seanad (Senate) since then? At a time
when Ireland has been battling to defend its beleaguered reputation
in the financial markets the world-over, this silence has ill-served
the nations best interests.

It is somewhat puzzling that the Minister was able set aside time in
his extremely busy schedule to write an article for the English
Financial Times last Thursday, an article in which he acknowledged
the damage done to Irelands reputation under this government, but
yet at no point in time over the last nine months did he trouble
himself to set the record straight regarding this 1,900% breach of
banking law which was recorded on the pages of the Irish Senate .
Posted by Whistleblower IRL at Sunday, November 28, 2010

Irelands Bank Whistleblower Calls Time on

Government Regulation Failures Is Anybody
Listening ?
In the last two years, the Office of the Director of Corporate Enforcement (ODCE), the Financial Regulator and the
Garda have been engaged in a prolonged investigation of the Irish banks. As yet, no cases have been brought and
some key players have not yet been interviewed. The latest obstruction of justice involves a number of apparently
unobtainable Anglo Irish Bank computer file passwords.

http://www.politicalworld.org/showthread.php?t=2644&highlight=ODCE

How much easier, one would think, these enquiries would have been, if Ireland had had some banking insiders who
would come forward and voluntarily given unvarnished evidence of what was going on inside the banking sector.

But we have had one whistleblower, who has reported a liquidity breach of 1,900 per cent, which he claims involved
billions, to the Financial Regulator. He alleges that a series of breaches occurred in the IFSC subsidiary of a European
Bank, for which he worked as a Risk Manager in 2007.

In todays Sunday Business Post (Dec. 5th 2010, Markets M5), Kathleen Barrington reports that the authorities are
coming under increasing pressure to account for their lack of action following the Whistleblowers reports.

The Whistleblower resigned from his position in order to disassociate himself from breaches of rules that he had
reported and which were potentially punishable by a fine or jail sentence.

Kathleen Barrington says that in spite of Senator David Norris and Joan Burton TD raising the alleged breaches in the
Senate and Dil and placing them on Parliamentary record, he feels that his questions have not been properly
answered. Joan Burtons question to the Minister of Finance, Brian Lenihan, was asked 25th November 2010 after
the Whistleblower says he had been pressing members of the Opposition parties to raise the issue in the Oireachtas
for months.

Barrington reports Minister for Finance Brian Lenihan responded that the Central Bank of Ireland was subject to
strict confidentiality requirements and consequently did not share information with his department, unless the issue
gives rise, for example, to some broader financial stability issue which did not arise in this instance.

From my personal standpoint, I would say that Brian Lenihans ability to spot and deal with stability issues has not
been outstanding. A liquidity breach of billions may very likely be an indicator of a serious underlying problems and
surely in its own right has the potential to destabilise one or more institutions ?

Brian Lenihan added that the Central Bank had followed the breach up at the time and was satisfied that it was a
one-off occurrence.
The Whistleblower is now questioning how Lenihan could consider a breach of 1,900% magnitude, in the sum of
billions 0f euros, did not threaten wider financial stability. He is asking if the European Regulator was informed. He
also wants to know who carried out an external review of the bank in question, referred to by Lenihan, and what its
findings were and is questioning why the Financial Regulator referred to current regulations as new, when they
were not.

Is this the practice we are to expect in years to come? One whereby the authorities simply re-issue laws as if they have
never existed before, just because they failed to enforce them? At least in Orwells 1984 all traces of the old truth are
shredded when a new one is introduced. In this case, the preamble to the new Directive issued by the Regulator
dates back to Central Bank Acts as far as 1942, but neglects to mention that these were introduced in 2006 and
enforced in 2007. In view of the 2006 regulation, a good number of the executives and/or directors whose banks
were guaranteed in that inconspicuous Sunday afternoon cabinet meeting in Sept 08, might either be facing
prosecution, or have been indicted by now. The IMFs recent take-over of Irish state finances is the result of all this
complicity and neglect.

At this stage, no one has been prosecuted in relation to the liquidity breaches and it appears no sanctions have been
applied to the Bank. The Whistleblower, in contrast, is having to fight to get a hearing for his concerns, with scant
attention from the Press, other than the redoubtable Barrington.

Which is more powerful in Ireland, we have to ask ourselves democratically adopted law and regulation, or the
Code of Omerta which punishes any insider who breaks ranks to tell the truth ?

Light touch regulation at the IFSC and elsewhere in Ireland has done terrible damage both here and to people and
companies who invested here. In 2007-2008, when the Whistleblower was doing his best to ensure good practice in
regulation, Taoiseach Brian Cowen was heading up an unusual working group

The Advisory Forum on Financial Legislation was set up by Cowen when he was Minister for Finance and held
seven meetings between the autumn of 2007 and November 2008. It was quietly disbanded during 2009 at a time
when light-touch, or principles-based, regulation was being increasingly blamed for contributing to Irelands
regulatory failures.The forum was chaired by Pdraig Rordin, the managing partner of Arthur Cox solicitors,
and the membership of the forum, as well as its drafting subgroups, was dominated by the financial industry and the
private sector. A Finance position paper from March 2007 stated: Lawyers from the important sectors of banking,
insurance, funds and investment sectors would be closely involved in the steering group.

In a private address to the forum in January 2008, Mr Cowen said he had established it with full Government
approval to ensure full involvement of the wider community of interests. The forums task was to prepare for cross-
sectoral principles-led regulation of the financial sector within 12 months.
The Irish Times Monday, April 26, 2010

I have suggested over the last few months whether the German Governments aggressive response to the terms of the
EU- Ireland bailout loan agreement may stem from the serious financial hits incurred through the likes of DEPFA.
Barrington agrees. She points to more than 100 billion losses occurred by German banking subsidiaries in Ireland.
Ironically, in Ireland, one increasingly hears references to reckless German investors and bankers who, some
economic commentators say, invested in risky Irish bonds at high interest and now want to be paid in full by the Irish
people.

Given the interconnectedness and interdependence of the national parts of the international finance sector, it seems
to me to be a red herring to see this as a national issue. Rather, its an conflict between the caste of people who have
and hold wealth and are powerful enough to bend (or break) the rules and get away with it, and those struggling day
to day to earn their livings, who are expected to carry the can.

The Whistleblower has shone a narrow and focused spotlight on one area of potentially lethal risk that existed in the
banking sector in Ireland. We owe him a profound debt of gratitude for this. As the full extent of the carnage resulting
from the International banking crash emerges, will others, finally step forward and open the sector up to the full glare
of broad daylight ?

The Financial Crisis From The Outside

Looking South
21.11.2010
Time was when I was growing up that we all knew when we were crossing the border south because the car dropped
several inches on the road whilst simultaneously, our heads jumped several inches in the direction of the roof of the
car.

Well, that was the generalisation which was indicative of many northern attitudes of the time and Im not talking
about Big Sam and Wee Rab in Ballyblackwilliam either. Maybe Nationalists along the border always knew the truth
but you only had to move away a little and there was a superiority complex that somehow we were just that little
better off, that bit more advanced and of course we had a work ethic to explain our advantage.

Utter bollocks the lot of it needless to say; and shameful that we were so gullible as to buy into this thinking which
was peddled by the very people who were lying to the rest of the world about us. Funnily enough, they were the very
same people who changed to telling us a few years ago that the Republic wouldnt want a millstone like us around the
Celtic Tigers neck.

Move forward again to 2010 and shock! Horror! Forget about a United Ireland, the south cant afford to look after
their own people, never mind us! We are left to wonder at just what level of economic prosperity we might be
permitted to put forward unity as an option without ridicule.

So, how does the average person living north of the Mason-Dixon view the current situation below? Answer; they
dont, there is no average opinion but I would attempt to give you an idea of how some consider the situation.

On the extremes, there is one school of thought who says regardless of anything, we must have unity by all means and
at all costs. Mirroring this is a contented Unionist sneer that enjoys the sight of a nation dying and proving it should
never have left the security of the Empire.

Both positions ignore just exactly how closely the two jurisdictions are linked and the impact recession in either will
have on the other. Further than that, anyone who stops to think for a second will recognise that the Republic, at least
in the meantime, has an actual economy which can be improved upon. The north, on the other hand, gets pocket
money from Mummy and plays grown-ups distributing the cash around its different departments.

For many people I would encounter on a daily basis there is undoubtedly an amount of pity and not in a
condescending way, Christ what have we to crow about? There is anger too, anger that financial organisations can
bring our countrymen to the brink of disaster and that the administration facilitated and were downright complicit in
the crimes. Mind you, the notion that politicians in Dublin were not looking after the wider interests of their people
did not come as a bolt from the blue in 2008!

It would be easy to say, butt out Nordie, you have a cheek considering the history there! and indeed elements of the
press and government are already trying to spin that protests in the south are being hijacked by violent Republicans
and by extension, northerners but maybe you need to think about it from the other direction; If someone from a
basket-case like the six counties is in a position to criticize, then something is really rotten.

I never felt any jealousy when, in the 1990s I suddenly noticed a massive improvement in the standard of living and
the infrastructure around parts of the Republic, a levelling of the road if you like, I was delighted and will be equally
delighted to see prosperity return albeit in a fairer way this time hopefully, north and south and maybe even together.

Still, I bet the roads in Cavan will still be shite!

Anglo to disclose more
materials to ODCE
probe
Updated / Friday, 2 Jul 2010
Legal privilege - Bank agrees to hand over more documents
The board of Anglo Irish Bank has agreed to disclose
further material to an investigation by the Director of
Corporate Enforcement.
Mr Justice Peter Kelly said the decision to grant a
limited waiver of legal privilege over the material
would substantially advance the investigation.
However the Commercial Court was told that any
prosecutions arising from the investigation could take
another year or two.
The move follows a request by Mr Justice Kelly for
the bank to reconsider its decision not to disclose
certain documents to investigators. It was claimed in
the Court that such a stance was delaying the
investigation.
This morning, lawyers for the bank said they had
made a proposal to the Office of the Director of
Corporate Enforcement ofering limited disclosure for
the purposes of the investigation only.
The Court heard it did not amount to a general waiver
to protect the commercial interest of the bank and -
because the bank was publicly funded - the public
interest.
The proposal was not at first acceptable to lawyers
for the ODCE who said the limited disclosure could
be meaningless if they were prevented from passing
on relevant information to the DPP and expert
witnesses.
However, after Mr Justice Kelly clarified the contents
of the proposal it was agreed that the disclosure will
form part of a court order by agreement. That order
will be made next week.
Mr Justice Peter Kelly said it was curious that the
ODCE had not formally requested the bank to waive
legal privilege until it was raised by the Court.
The judge refused an application for an extension of
six months to the ODCE in relation to the retention of
material seized during the investigation. He said he
would grant an extension until November next and
wants a progress report on what has already been a
lengthy investigation.
Senior Counsel Paul OHiggins for the ODCE said it
was inevitable that he would have to return to court in
six months as the investigation may not be complete.
He said any potential prosecutions arising from the
investigation may not take place for another year or
two.
Anglo Irish probe has cost 1m to date

Updated / Thursday, 27 May 2010 21:04

TheinvestigationintoAngloIrishBankhassofarcosttheOfficeoftheDirectorofCorporate
Enforcement1m.

DirectorPaulApplebysaidhehopedtheinvestigationwouldbewrappedupinafewmonths,but
declinedtogiveaspecificdate.

Between16and18peopleareworkingontheinquiry.

Theprobeiscurrentlyfocusingonloanstodirectorsatthebank,theGoldenCircleinvestorsandthe
backtobackloansof7.45bnfromIrishLife&Permanent.

MrApplebysaidgardaareverysatisfiedwithprogressandgoodprogresshasbeenmade.

HesaidhisofficewouldpresenttheDirectorofPublicProsecutionswithpapersassoonaspossible.

HeaddedmystaffandIarewellawareofthepublic'slegitimatedesirethattheseinvestigations
shouldbeconcludedsoon,andweareendeavouringtocompleteasquicklyasisappropriate.
Anglo Irish Bank
investigation extended
Updated / Friday, 11 Dec 2009
Anglo Irish Bank - Electronic files examined
The High Court has approved an application by the
Director of Corporate Enforcement for a six month
extension of an order related to its investigation into
the afairs of Anglo Irish Bank.
Lawyers for the Director of Corporate Enforcement
told Mr Justice Peter Kelly that investigators had
begun taking statements from individuals and that the
investigation was particularly concerned with the files
of 20 members of staf relating to the period between
January 2008 and February 2009.
The information has been seized under search
warrants obtained earlier this year in a joint
investigation between the Office of the Director of
Corporate Enforcement and the Garda Bureau of
Fraud Investigation into suspected breaches of
company law.
A sworn statement by a Garda Inspector and officer
of the Director of Corporate Enforcement, Eamon
Keogh, said thousand of electronic files were being
examined and up to three million electronic
attachment messages needed to be examined in
detail.
Lawyers for the bank said it was cooperating with the
investigation and was happy to consent to the
extension order.
Paul O Higgins, SC for the Director, was unable to
say how long the process of taking witness
statements would take.
Mr Justice Peter Kelly said it was quite clear that a
huge volume of electronic material needed to be
examined which was a daunting task.
He agreed to extend an order made last October on
how the seized documents are to be retained and
how issues of any legal professional privilege which
could attach to some documents are dealt with.
Sean Whelan: Financial
risk is rising
Updated / Sunday, 28 May 2017
By Sean Whelan
Economics Correspondent

This week the European Central Bank raised the risk

level in one of its four main risk indicators for financial
stability from "potential risk" to "medium-level risk".
As a result, three of the four indicators are now on the
medium-level risk" point in a three point scale (the
final one being "pronounced risk").
The increased risk level was in the public and private
debt sustainability sphere.
The reasons behind the up-rating in risk were a
potential re-pricing in bond markets and political
uncertainty in some countries.
And no, they dont mean Brexit. For once this is a
report from an EU institution that does not big up the
risk from Brexit.
Yes, it does says the UK decision to leave adds to the
prevailing level of political uncertainty. But it says the
"Brexit process itself is currently not one of the main
concerns for Euro area financial stability".
Phew! What a relief as characters in British comic
books used to say (usually just before something
ghastly happened to them).
It goes further, saying Brexit is "likely to have limited
implications for the Euro area economy and financial
stability".
And the ECB thinks the risk that the Euro area real
economy will face restrictions in accessing wholesale
and retail financial services as a result of Brexit
"appears limited".
It notes two channels of possible negative impact on
financial stability one being the macroeconomic
impact of the (expected) slowdown in the UK
economy and its efect on the value of the "relatively
modest direct exposure of Euro Area financial
institutions to the UK real economy.
The other channel is the potential disruption in the
provision of financial services to the Euro area
economy from the UK.
While it may be true that at an aggregate level the
Euro Area financial sector has limited direct exposure
to the UK real economy, we do not live in the
aggregate Euro Area; we live in Ireland, where there
is a much more significant two way exposure in
financial services.
We might be more relaxed about the asymmetric
impact of Brexit on financial stability in Ireland if there
were well developed financial shock absorbers at the
"aggregate Euro area level".
But the last time there was an external shock
impacting on an unstable national financial exposure
it was every state for themselves.
We and most other EU states still bear the scars
in the form of a very heavy debt load, racked up in
dealing with the great recession, the banking crisis
and the Euro area sovereign debt crisis.

In Irelands case, the debt pile has gone from 47bn

pre crisis to 200bn now a fourfold increase in the
amount of debt that has to be serviced, through
interest payments and through re-financing (paying
of maturing bonds with money raised by issuing new
bonds).
For the past few years due in very large part to the
quantitative easing programmes of the ECB and the
Federal Reserve the yield, the efective interest rate
on the bonds used by governments to borrow money
has been very low, reducing the cost of holding
such large amounts of debt.
Allied with zero or negative interest rates in the
Central Banks, this has driven money into stock
markets, property investment and sometimes even
the real economy helping to create a modest but
sustained recovery, first in the US and now here in
Europe.
Which is good.
But sooner or later the central banks will start to
normalise their interest rate policy, believing the
recovery will no longer need to be propped up by
Central Bank voodoo.
This is likely to happen first in the US (where there
have already been some tentative baby steps in that
direction) and then in Europe.
But these changes mean there will be a re-pricing of
sovereign and commercial bonds, as more
competitive returns are to be had elsewhere, and
central banks stop buying up bonds to prop up their
prices.
This is the first risk identified by the ECB: a re-pricing
of global fixed income markets triggered by
changing market expectations about economic
policies.
Those expectations of changed policy were strongest
in the US in the wake of Donald Trumps victory in the
2016 Presidential election, but appear to have faded
somewhat in recent weeks as the administration runs
into the mire of the Russian intelligence scandals and
the tax reform plan hits the quick sands of Congress
(not to mention the row over the "double counting" in
Mr Trumps first budget).
This sentiment has been felt in the major bond
markets, with yields rising, then easing back in recent
weeks, as markets became less optimistic about an
upside in near term growth prospects in the US.
The close connections between the financial systems
of the US and EU means that when US yields go up,
they nudge European yields up too.
Add to this the gradual recovery in nominal growth
across the Euro Area and there has been some
upward pressure on sovereign yields here too.
There were also particular local circumstances,
notably the rise in French yields as the presidential
elections got closer and markets began to see how
well Marine Le Pen was doing.
They have slipped back since (at 0.77 they have
ducked back below Irish 10 year yields at 0.80, but
had been higher in the weeks running into the
election. By contrast Italian 10 year bonds yield 2.1%,
Portuguese 3.2% and Greek 5.9%).
One of the problems with a rapid re-pricing of Euro
are bonds is that there could be significant capital
losses for investors who have bought a lot of bonds.

According to the ECB, around 15% of Euro Area

bank total assets are in the form of bonds. It is even
higher for insurance companies, pension funds and
investment funds: about a third of their total assets
are in the form of bonds holdings.
The prospect of bond re-pricing comes on top of risk
number two for the ECB, the "adverse feedback loop
between weak bank profitability and low nominal
growth, amid structural challenges in the Euro area
banking sector".
Euro area bank profitability is low, and went lower last
year, with margin compression not being
compensated for by increased loan activity.
Aggregate Return on Equity for significant Euro Area
Banks is 3% - far behind the 9-10% ROE reported by
US and Nordic area banks.
The ECB says risk taking by Euro Area banks
remained broadly unchanged last year "and no
significant signs of excess can be inferred from their
activities". But if they are not stepping up lending,
they remain vulnerable to a re-pricing on their bond-
holdings.
Though higher bond yields imply rising interest rates
generally, and that should be good for bank margins.
However, the ECB warns that high levels of debt held
by governments, businesses and households leaves
them vulnerable to rising rates.
As usual, the aggregate level date masks the fact that
some countries are more vulnerable than others (see
those bond yields above, and keep an eye on political
developments in Italy in particular).
The bond market jitters over the election of Mr Trump,
Brexit and the strong showing of Ms Le Pen and Mr
Wilders is understandable given the nature of the
immediate events.
But the ECB ofers a longer term analysis of political
uncertainty as well. Noting that several countries
have seen an increase in political fragmentation and
polarisation in recent decades, it says one reason
behind this is "likely to be the increase in economic
inequality observed in many economies over the past
decade".
It cites OECD research noting that income
distributions in advanced economies have become
less equal since the mid 1980s to conclude "As
incomes became more dispersed, voters preferences
became more diverse, with more polarisation among
electorates resulting in increased political
fragmentation".
Only the fourth risk liquidity risk in the non-bank
financial sector with potential spillovers to the broader
financial system is rated as a "potential risk", the
lowest level of risk.
Since the financial crisis many investment funds have
been hit by falling interest rates and in the "search for
yield" have shifted more money into lower rated ie
riskier investments to get the higher yields on ofer.
They are also holding less cash (because of zero or
negative rates).
This situation leaves them somewhat vulnerable if
there is a bond re-pricing, and investors want some of
their money back quickly.
Investor flows in to and out of such funds tend to
follow past returns, but because so much money has
gone into instruments that are likely to fall out of
favour rapidly, this situation has the potential to
amplify shocks in market prices.
The ECB warns that while the investment fund sector
is subject to regulation, most existing rules do not
have a systemic perspective, and may not prevent a
build up of sector wide risks.
It says more information on liquidity in stressed
circumstances and on leverage would be needed to
properly monitor risks in this growing and
increasingly interconnected sector.
https://www.rte.ie/news/analysis-and-comment/2017/0528/878454-
financial-risk-sean-whelan/

Lowry helped O'Brien get mobile licence

Updated / Tuesday, 22 Mar 2011

TheMoriartyTribunalhasfoundthattheformerCommunicationsMinisterMichaelLowryassisted
businessmanDenisO'Brieninacquiringamobiletelephonelicenceinthemid90s.

ThesecondandfinalreportfromtheTribunalofInquiryconcludeditwasbeyonddoubtthatMr
LowrygavewhatittermedsubstantiveinformationtoDenisO'Brien,ofsignificantvalueand
assistancetohiminsecuringthelicence.

TheTribunalreportfoundthatMrLowrydisplayedanappreciableinterestintheprocessandhad
irregularinteractionswithinterestedpartiesatitsmostsensitivestages.

ItalsofoundthatMrLowrysoughtandreceivedsubstantiveinformationonemergingtrendsandmade
hispreferencesontheleadingcandidatesknown.

MrLowryproceededtobypassconsiderationbyhisCabinetcolleaguesandtherebynotonly
influenced,butdeliveredtheresultthatEsatDigifonehadwontheevaluationprocesswhich
ultimatelyledtothelicensingaward.

ThereportdescribesthesemattersaselementsofMrLowry'sinsidiousandpervasiveinfluenceon
theprocess.
ThemostpervasiveandabusiveinstanceofMrLowry'sinfluenceontheawardingofthelicencewas
hisactioninwithdrawingtimefromtheProjectGroup,whenithadrequestedanextensiontoitswork
becauseitwasnotconvincedthatEsatDigifoneshouldbenominatedasthewinner.

Theprojectgrouphadaskedforextratimebecauseitwasconfusedabouttheweightingsappliedand
howtheresulthademerged.Thegroupwantedanopportunitytorevisitandreviewtheevaluation.

BenDunne

ThetribunalfoundthatMrLowrysoughttoprocureunwarrantedrentincreasesthatoverasevenyear
periodwouldhaveimproperlyenrichedbusinessmanBenDunne.

MrLowrysoughttoinfluencetheoutcomeofanarbitrationbeingconductedin1995inrelationtothe
rentpayablebyTelecomEireannforMarlboroughHousetoacompanyownedandcontrolledbyMr
Dunne.

Thematterwasprofoundlycorrupttoadegreethatwasnothingshortofbreathtaking.

MrDunnehasrejectedthefindingsandhasinsistedheisnotacorruptbusinessman,hehassaidifthe
TribunalfeelsheactedoutsidethelawitshouldforwardafiletotheDirectorofPublicProsecutionsso
thattheDPPcouldconsideraction.

HetoldRT'sLivelinethathewouldnotrunawayfromtheallegationsinthereportandwoulddefend
himself.

ThereportcommentsondocumentsinthepossessionofEsatDigifone,whichwere'neverintendedto
anyapplicant'.

ThedocumentswereconfidentialcorrespondencebetweenMrLowryandEUCommissionerVan
Meirt.

ThedocumentshadmadetheirwaytothetribunalviaJarlethBurkewhohadrepresentedMrO'Brien's
interestsindealingwiththeCommissionandtheDepartment.

TheTribunalsaidtheyweredocumentsthatMrBurkehad'nobusinesshavinginhispossession'.

Thedocumentscontained'sensitiveinformation'ontheweightingadoptedbytheprojectgroup.

Moriartywasunabletoconcludehowtheinformationontheweightingmatrixadoptedbytheproject
groupwasobtainedbythecompany.

PaymentstoMichaelLowry

ThereportalsosummariesthecumulativepaymentsmadetoMichaelLowryandsaysInaggregating
theknownpaymentsfromMrDenisOBrientoMrMichaelLowry,itisappositetonotethat,between
thegrantingofthesecondGSMlicencetoEsatDigiphoneinMay1996,andthetransmissionof
420,000sterlingtocompletethepurchaseofthelatterofMrLowry'sEnglishpropertiesinDecember
1999,MrO'BrienhadmadeorfacilitatedpaymentstoMr.Lowryof147,000sterling,300,000
sterlingandabenefitequivalenttoapaymentintheformofMrO'Brien'ssupportforaloanof
420,000sterling.

Thereportaddsthatthevalueofthesumsmentioned'intoday'sterms,isobviouslywellinexcessof
theamountstransferredatthevarioustimesmentionedinthisReport'.
Duringtheperiodofthecompetitionforthemobilephonelicenceandsubsequentlicensing
negotiations,MrO'Brienorhiscompaniessupported14FineGaelfundraisingevents,andcontributed
atotalof22,140bywayofdonationstoFineGael.

MrLowrydisplayedanappreciableinterestintheprocessandhadirregularinteractionswith
interestedpartiesatwhatittermsmostsensitivestages.

ThereportsaysitfindsitwhollyincredibleandinconceivablethattheGSMprocesswasnotraised
anddiscussedatinformalmeetingsbetweenMrLowryandMrO'Brien.

TheTribunalsaysitrejectstheevidenceofbothmenregardingameetingtheyheldinaDublinpub
afteranallIrelandfinalin1995.

Inastatementtoday,DenisO'Briensaidthatthereportwas'fundamentallyflawed'becausehesaiditis
'basedontheopinionsandtheoriesofMrJusticeMichaelMoriartyandhislegalteam.

MrO'BrieninsistedthathenevermadeanypaymenttoMrLowryinhiscapacityasaGovernment
Minister,asapublicrepresentativeorasaprivatecitizen.

MrLowryisnotinthecountryatthemoment,butinastatementissuedtoRTNewssaidhe'totally
rejectsthetenoroftheMoriartyreport'.

HesaidMrMoriartyhas'outrageouslyabusedtheTribunalsabilitytoformopinionswhicharenot
substantiatedbyevidenceorfact'.

Hesaidthatthereporthasnobasisinlawandhesaidhewouldstudyitindetailandinduecourse
challengeitsveracity.

BusinessmanDermotDesmondtonightaccusedtheMoriartyTribunalofbiasandsaidithasbeen
prejudicialfromtheoutset.

MrDesmondhelpedtofinanceMrO'Brien'sbidbutwasnotunderinvestigationoverthegrantingof
thelicence.

'TheTribunalbecauseofthelengthoftimeithastaken,andthecostofitsinvestigations,hasnowa
vestedinterestinachievinga'result','hesaid.

'ThisTribunalhasrejectedevidencewhereitdidnotsuititsendandhasdescribedreputablewitnesses
appearingbeforeitindisparagingterms.

'FromtheoutsetitismybeliefthattheTribunalhasbeenprejudicialinitsapproach.'
Statement from Michael
Lowry
Updated / Tuesday, 22 Mar 2011

Michael Lowry - Says the report is ultimately the opinion of the

Chairman and it has no basis in law
Deputy Michael Lowry in a response said that he
totally rejects the tenure of Moriarty report.
His report is factually wrong and deliberately
misleading.
Moriarty has outrageously abused the Tribunal's
ability to form opinions which are not substantiated by
evidence or fact.
For example, in relation to the license it was not
possible for me to interfere with the license process
without the collusion of up to eighteen civil servants.
It is preposterous of Moriarty to form an opinion in his
report that all of the civil servants and the consultant
Michael Andersson had efectively lied under oath.
During the prolonged hearings into the license not
one single witness gave evidence that I in any way
interfered with the process or made any suggestion
as to who should win the license.
Furthermore not one single witness gave evidence
that I in any way undermined the application of any
losing bidder.
It is ludicrous of Moriarty to state that the Government
of the day were in any way misled or in any doubt as
to the recommendation made by the Independent
project team.
It should be remembered that the project team was
comprised of senior civil servants from both the
Department of Communications and the Department
of Finance.
From the outset Moriarty was biased and has given
fourteen years working to prove a theory that the
license was improperly granted.
It beggars belief how he could ignore the extensive
evidence given to the Tribunal which clearly confirms
that I did not in any way influence the decision of the
Independent project team.
Moriarty's credibility was shattered because of his
selective approach to evidence during the private and
public enquiry.
I have long believed that because of the time and
massive expense involved with the Tribunal that the
final report would have to justify its existence.
This report is ultimately the opinion of the Chairman
and it has no basis in law.
It is my intention to study the report in detail and in
due course, to challenge its veracity.
https://www.rte.ie/news/2011/0322/298948-lowrym_statement/

Moriarty Tribunal
publishes final report
Updated / Tuesday, 22 Mar 2011

Moriarty Report summary | main points

Full report Part 1 | 2
Statements Michael Lowry | Denis O'Brien |
Dermot DesmondLiveline: Ben Dunne
The Moriarty Tribunal was established in 1997 to look
into the financial afairs of former Taoiseach Charles
Haughey and former Fine Gael communications
minister Michael Lowry.
This final report details the investigation into possible
links between businessman Denis O'Brien and
Michael Lowry.
Ireland's second mobile phone licence was awarded
to Denis O'Brien's Digifone in 1995. Mr Lowry was
Communications Minister when the mobile phone
licence was granted.
The report states that it is 'beyond doubt' that Michael
Lowry imparted substantive information to Denis
O'Brien which was 'of significant value and
assistance to him in securing the licence'.
Michael Lowry's role is described as 'disgraceful and
insidious'.
Updates:
2311 If you missed any of tonight's reports from
Prime Time or the Nine News, you can watch them
here
2113 Miriam O'Callaghan will be joined on Prime
Time by Minister for Communications Pat Rabbitte,
Gay Mitchell MEP, as well as journalists Sarah Carey
and Sam Smyth.
2110 Watch futher coverage of the fallout from the
publication of the Moriarty Tribunal report on tonight's
Nine News and Prime Time.
1918 Businessman Dermot Desmond has issued a
statement this evening in reaction to the publication
of the report.
Mr Desmond accused the Moriarty Tribunal of bias
and said it has been prejudicial from the outset.
'The Tribunal because of the length of time it has
taken, and the cost of its investigations, has now a
vested interest in achieving a 'result',' he said.
'This Tribunal has rejected evidence where it did not
suit its end and has described reputable witnesses
appearing before it in disparaging terms.
'From the outset it is my belief that the Tribunal has
been prejudicial in its approach.
'At over 1500 pages the Moriarty Report is the
most lengthy and expensive comic ever
produced.'
1858 Denis O'Brien said Mr Justice Michael Moriarty
had admitted last summer that he had got two
issues completely wrong.
He said that if this had happened in the High Court,
the case would have been deemed a miscarriage
of justice and would have been thrown out.
1838 'This judge is flawed and has made serious
mistakes ... he was never up to the job of writing this
report.'
1835 'They looked at every bank account I had in the
world. I gave them access to every account,' Denis
O'Brien tells Six One News.
'All the witnesses came in and said Denis O'Brien
was not involved in any of these transactions It's not
evidence, it's hearsay. Anonymous letters.
'It is a very bad day for a High Court judge when he
uses hearsay, and without any facts at all, makes
rulings.'
1826 'I never paid Michael Lowry one red cent' -
Denis O'Brien
1754 Michael Lowry's son, Cllr Micheal Lowry, has
rejected suggestions that his father should resign
from the Dil.
Cllr Lowry said that his father had a mandate from
over 14,000 people in Tipperary North to represent
them in the Dil and had heard nothing new in the
Moriarty Tribunal Report.
He said the people of the area had heard the
rumours and innuendo coming out of the tribunal now
for many years, but had faith in their local TD and
would not be changing their view.
1749 Fianna Fail leader Michel Martin said the
Tribunal Report should be sent to the DPP.
He asked how Mr Rabbitte would account for the
failures of the government on the awarding of the
licence, since Mr Lowry by-passed the Cabinet.
He asked what other ministers were doing at the
time, to allow Mr Lowry ride roughshod over them
He said the Rainbow coalition were either fools or
knaves to allow this.
1722 Socialist Party TD Joe Higgins said the report
had uncovered shocking political and corporation
corruption.
Denis O'Brien had sold the mobile phone licence for
a profit of IR250m - Deputy Higgins asked if the
Criminal Assets Bureau would seek to recover that
money for the State.
1720 The Minister for Communications has told the
Dil he has not yet read the report in detail, but has
been advised as to its contents.
Minister Pat Rabbitte said the report's findings
were of the utmost gravity and said Michael Lowry
had made insidious inroads to the process of
awarding the license.
1705 Ben Dunne was on Liveline this afternoon
following the publication fo the report - listen back to
the full programme
1654 Extract from Part 1 Chapter 16 of the
Moriarty report:
'Had the Tribunal's inquiries not been delayed in the
year 2000, consequent on Mr Charles Haughey's
health problems,' the Tribunal's work may well have
concluded before further material information on Mr
Lowry's finances 'which had been witheld' came to its
attention.
Moriarty says the inquiries may have ended after
Chapter 2 of today's report.
This section concerned payments from Dunnes
Stores to Mr Lowry and his companies.
1644 In the Dil, Enda Kenny said he has not yet
read the 2,000 page report, but said he welcomed the
fact that it has been published.
He said that there are 'four or six' High Court or
Supreme Court cases currently in progress around
the issue and said he did not want to say anything
about it now.
The Fine Gael leader was responding the Micheal
Martin who said today's report contains stinging
criticism of Fine Gael.
The Fianna Fil leader asked Enda Kenny if he would
apologise on behalf of Fine Gael for its 'concealment'
and 'lack of co-operation' with the tribunal around the
issue of the Telenor donation.
The FF leader also pointed out that six current
Cabinet members were in the Rainbow coalition that
awarded the licence in 1995.
1631 The below graphic from the Moriarty Report
(part 1 p99) details the movement of 147,000 from
Denis O'Brien to Michael Lowry (full size here)
1627 Leaders' Questions taking place in the Dil.
Taoiseach Enda Kenny is answering questions about
the Moriarty Tribunal Report. Watch it live.
1544 Communications Minister Pat Rabbitte is to
answer a special notice question on the Moriarty
Report in the Dil at around 1645 this afternoon.
1520 Taoiseach Enda Kenny told the Dil a short
time ago that members of of his party will be
available to answer questions in the Dil regarding
any part they played in the awarding of the mobile
phone licence to Esat Digiphone in 1995.
1438 Michel Martin asks Enda Kenny when the
Government became aware that the Moriarty report
would be published today - the Taoiseach says he
heard while walking to the Cabinet meeting this
morning.
'This is a report that deserves serious analysis and it
will get that that from this Government' - Enda Kenny.
Micheal Martin described the report as a 'damning
indictment' on the then government's decision to
award the licence .
He said it is a matter of grave importance with
implications for the State and the taxpayer.
1435 When Jarleth Burke, a young lawyer who
represented Denis O'Brien in 1995, produced his
documents to the Tribunal they contained a fax dated
24 July 1995 from Mr Burke to the then Director of
Esat Telecom.
It contained a copy of the front page of a letter sent
from the European Commission to the Department on
20 July 1995 which mentioned some highly sensitive
and confidential information about the weighting
matrix to be used.
The report found that this was an important and
valuable piece of information that should not have
been available to the consortium.
Although there were seven versions of this letter in
circulation, the Tribunal traced it to one particular
copy that was undated and marked with specific
initials.
It said it was likely that this version came from the
Commission or the Department but neither Mr Burke
or members of the Commission could confirm where
it came from.
The report said that regardless of where it came from
Esat had information regarding the weighting matrix
that it as not entitled to and might confer advantage
on the consortium.
Denis O'Brien said he had no recollection of seeing
this letter.
1428 Questions to the Taoiseach will begin in the Dil
in a couple of minutes. Watch live in the player above
from 1430.
1408 The report points out that two further payments
were made to Fine Gael - one of which was greater
than the aggregate amount of all recorded
donations.
It notes that this payment, by Telenor on behalf of
Esat Digifone, was made in unusual circumstances in
December 1995.
A donation of $50,000 for a Fine Gael fund-raising
dinner in New York was made by Telenor into an of-
shore account of the late Mr David Austin, a close
personal friend of Mr Lowry and a member of the
organising committee for the NY event.
The donation was declined by the then Taoiseach
and Fine Gael leader John Bruton when it was
brought to his attention.
The report notes that the payment was transferred to
Fine Gael on 6 May 1997 via a cheque from David
Austin to longstanding Fine Gael supporter Frank
Conroy.
Tom Curran told the tribunal that upon realising the
source of the donation - the party sought to return it,
but this did not happen until 7 March 2001.
1400 Mr Lowry had full knowledge of a decision
to falsify files in 2001 to conceal a 'clear financial
connection' with Mr O'Brien.
The documents were contained in files belonging to
English solicitor Christopher Vaughan concerning Mr
Lowry's involvement in property transactions in
Cheadle and Mansfield.
1352 The money trail:
Dealing with the money trail, the Tribunal says 'no
conclusion can be arrived at, other than that
repeated and clandestine courses of actions were
adopted by persons intimately associated with Mr
O'Brien, to confer payments or other benefits upon
Mr Lowry on behalf of Mr O'Brien'
* Ir147,000 from Mr O'Brien through David Austin in
a series of ofshore moves.
* 300,000 sterling to Mr Lowry's client account with
his UK solicitor, Christopher Vaughan. (This funded
the 231,000 sterling purchase price for the
Mansfield property and 44,500 sterling as a deposit
on the Cheadle property).
* 420,000 sterling loan rushed through Woodchester
Bank as a 'Dennis O'Brien transaction'. This was
intended to complete the purchase of the Cheadle
property. However this transaction was reversed in
early 2000 for 'secrecy' reasons.
The report says 'above all the wholesale falsification,
concealment and delay aforded to the Tribunal, by
and on behalf of the persons primarily involved,
frequently following spurious assurances of full
cooperation, confirms the validity, and indeed
necessity, of the findings that have been made.'
1342 Mr Lowry received 300,000 (sterling) from Mr
O'Brien 'giving reasonable inference' that the motive
was connected to his position as
Communications Minister.
The report states that most of the money was used
to buy property in Mansfield and Cheadle in
England in 1999 and was received by Mr Lowry
through Aidan Phelan, Mr O'Brien's adviser.
1340 The Tribunal is 'satisfied' payments and other
benefits were furnished 'by and on behalf of' Mr
O'Brien to Mr Lowry, and that these were
'demonstrably referable' to the acts and conduct
of Mr Lowry in regard to the mobile phone licence
process that led to Mr O'Brien's consortium Esat
Digifone winning the process. (Chapter 60.39 page
1056)
1337 There were shortcomings in the financial
analysis of the standing of the Esat Digifone bid for
the mobile phone licence.
The report found that the financial capability of
Esat Digifone was demonstrated at an
'undocumented, unreferenced, private' meeting
the day before the licence was issued.
The Department was prepared to accept that a letter
would be obtained from Anglo Irish Bank stating that
10m would be available to Dermot Desmond to
invest in Esat Digifone in 1996. (Chapter 61.262
page 1148)
1331 Michael Lowry's actions have cast a 'further
shadow' over this country's public life.
The report refers to Mr Lowry's 'cynical and venal
abuse of office', his 'brazen refusal' to acknowledge
the 'impropriety' of his financial arrangements with Mr
O'Brien and Mr Dunne, and his 'contemptuous
disregard' for his taxation obligations.
1326 It was the view of the only two members of the
Project Group with accountancy and financial skills,
that the mark awarded to Esat Digifone for the
financial evaluation was wrong and that instead of
receiving an overall B grade the Esat Digifone
application warranted a C grade.
It says it is also beyond question that there is no
direct evidence that their views were ever brought to
the attention of the project group and it is equally
clear that for some reason their revisions were not
accepted. (Chapter 61.160 page 1114)
1320 With reference to information supplied by
officials to Mr Lowry and attempts to have the
decision on a second GSM licence speeded up; The
Tribunal says it has 'no doubt' it was Mr Lowry
who brought about the 'ultimate acceleration of
the process' and who was 'determined' the result
should be announced in October 1995.
'Overall the Tribunal found Mr Lowry's evidence in
this regard to be formulaic, evasive and unhelpful'
and the Tribunal 'has had no hesitation in rejecting it'.
(Executive summary II, page 1112)
1318 News At One is still discussing the report
watch webcam here
1317 During the period of the competition for the
mobile phone licence and subsequent licensing
negotiations (March 1995 to June 1996), Denis
O'Brien or his companies supported 14 Fine Gael
fundraising events, and contributed a total of
22,140 by way of donations to Fine Gael.
(Chapter 61.11 page 1064)
1315 If changes to marks for the eight indicator
groups, proposed by accountants Billy Riordan and
Donal Buggy on Monday 9 October 1995 had been
adopted, it could have had a significant impact on
the ranking of applicants in the process.
It says for reasons that remain unclear and were not
adequately explained, their revisions were not
considered by the project group.
1312 Mr Lowry had denied that he had said to
Anthony O'Reilly that 'your fellas didn't do too well
yesterday' in reference to the Irish Cellular
submission to the department.
However, the Tribunal finds that 'a remark, consistent
only with knowledge on the part of Mr Lowry of an
unfavourable assessment of the performance of Irish
Cellular with the previous 24 hours, was made by him
to Mr O'Reilly.
This in turn can only have resulted from disclosure to
Mr Lowry from within the Project Group, most
probably by Mr [Martin] Brennan, in breach of the
intended seal of confidence' (Chapter 61.106 page
1095)
1311 Further details on the $50,000 donation made
by Denis O'Brien to Fine Gael can be found here
1309 Statement from Denis O'Brien
He says the report is 'fundamentally flawed' because
'it is based on the opinions and theories of Mr Justice
Michael Moriarty and his legal team.'

1307 Brian Dowling: The report raises profound

questions about Michael Lowry's capacity to stay in
public life. It is a very damning report for Mr Lowry.
1302 Chapter 16 in Volume II deals with growing
dissatisfaction from Norwegian partner in the licence
bid, Telenor, at what it saw as the lack of a sufficient
funding arrangement underpinning the Esat Digifone
application.
The Tribunal agrees that such an uncertain funding
arrangement could scarcely have met the
procurement process's condition of demonstrable
financial capability.
The report says the fact that financial backing was so
uncertain was not disclosed in the Esat Digifone
application.
1301 Read the statement issued on behalf of
Michael Lowry.
1254 Speaking to RT a short time ago, Ben Dunne
said the Moriarty Tribunal never acted upon a medical
report which said he was unbalanced and unwell'
during the 1990s.
Mr Dunne said the report stated he was using 'mind
altering substances' which afected his memory and
behaviour.
Mr Dunne said the tribunal never spoke to his
medical team or psychiatrist.
1251 At a meeting between departmental officials
and the advisors in Copenhagen on 28 September
1995, 'significant departure was made in the
weightings applied at this decisive point in the
evaluation process' The report says the reason for
the changes were never adequately explained.
(Chapter 61.138 page 1107)
1250 Michael Lowry told RT News this afternoon
that he was unaware the report was to be published
today.
1235 Contacts of the type which occurred
between Mr O'Brien and Mr Lowry on 4 April 1995
were inevitable and had been anticipated by Mr
Loughrey when he had briefed Mr Lowry on the
importance of dealings with interested parties.
The report adds that - while it was perhaps
inadvisable and possibly indiscreet for Mr Lowry to
engage with Mr O'Brien in relation to the GSM
process and to disclose information to him which can
only have emanated from within his own Department
- Mr Lowry no doubt recognised that the information
was hardly confidential, it did not relate to any aspect
of the project group's work and that the exchange
between them occurred well before the closing date
of the competition process proper.
But it says what it does suggest to the Tribunal is that
there was an inclination on the part of Mr Lowry
to be less than discreet and less cautious in his
dealings with interested parties than might have
been advisable. (Chapters 12.13-12.14 page 203)
1233 Mr O'Brien instigated a payment of $50,000
payment to Fine Gael two months after his company
ESAT Digifone won the second mobile phone licence.
Mr Lowry was then Minister for Communications and
a Fine Gael TD but the Tribunal found he did not
personally benefit from the donation.
The donation was made by ESAT's Norwegian
partners Telenor but reimbursed by Mr O'Brien's
company.
During its public hearings the report noted that the
origin of the donation involved a considerable conflict
of evidence as to whether it came from ESAT or
Telenor.
The Tribunal also found that businessman the late
David Austin - a close friend of then Mr Lowry -
was a conduit for the donation and the money held
in an of shore Jersey Island account before being
passed on to Fine Gael as Mr Austin's own donation.
The Tribunal found that when this 'tortuous process'
became known neither the donor nor the recipient of
the donation wished to keep it.
1230 It is 'wholly incredible and inconceivable' that
the GSM process was not raised and discussed at
informal meetings between then Mr Lowry and Mr
O'Brien.
One of these occurred at Hartigans pub in Dublin
after the all-Ireland football final in 1995.
The Tribunal 'rejected the evidence of both men in
this regard and considers that the only realistic
inference to be drawn from it' is that Mr Lowry
'volunteered' information to Mr O'Brien on how
the project group assessing the GSM application
was viewing Esat Digifone's bid.
This may have prompted Mr O'Brien to contact
Dermot Desmond with a view to strengthening 'the
Department's perception' of Esat's finances and his
side of them. (Executive Summary II page 1097).
1229 The responsibility for Mr Lowry's breaching of
confidentiality of the award process rested with him,
but also with systemic failures within the Department.
The report states that greater precautions ought
to have been taken to segregate those
conducting the evaluation of the process from
their political master.
The report finds those officials conducting the review
had no means of knowing that Mr Lowry was
conveying information to Mr O'Brien, or any other
interested party, and had no reason to suspect Mr
Lowry's motives. (Chapter 60.35 page 1055)
1225 Department's co-operation criticised:
Moriarty strongly criticised the level of cooperation it
received from the Department of Transport Energy
and Communications in its investigation.
The Tribunal says that when was first instructed to
investigate the matter, it received assurances from
the then Secretary General of the Department John
Loughrey - and two centrally involved officials - that
the procedure had been 'exemplary'.
Having received such a positive commendation from
the Department, the Tribunal decided no further
preliminary investigations were necessary or
justifiable.
When it subsequently reactivated its enquiries in May
2002, it discovered that no systematic record of the
process had been kept by the Department.
Over the ensuing months, 119 files incorporating
30,000 pages of documentation were produced to the
Tribunal - but without any guidance or assistance as
to their contents.
The Tribunal says that with certain notable
exceptions, its eforts to progress its inquiries were
met with a degree of engagement on the part of
Department personnel which was 'significantly less
than what should have been forthcoming.'
It was also in marked contrast to the constructive
engagement experienced in dealing with other
government departments.
It also refers to the delay by Danish consultant
Michael Andersen in making himself available to
give evidence.
It describes Mr Andersen as having 'substantially
disengaged' from the tribunal in mid-2002, and as
having declined to give evidence unless furnished
with a comprehensive state indemnity.
He only agreed to give evidence seven years later
after receiving an equivalent indemnity from Mr
O'Brien.
In the meantime, the Tribunal had been forced to
defend proceedings instituted by Mr O'Brien in late
2005 arising in part from Mr Andersen's non-
availability as a witness. (Volume 2, Chapter 1, pages
1-4)
1210 A payment of 147,000 was made by Mr
O'Brien to Mr Lowry through Mr Aiden Phelan and
the late Mr David Austin during a period when Mr
Lowry held public office in circumstances giving
rise to a reasonable inference that the motive for
making the payment was connected with the
public office of the Minister for Transport Energy
and Communications then held by him.
The report says the evidence surrounding this
payment disclosed that it was a 'carefully planned
and covert payment.' However, the Tribunal says it
was hastily repaid out of fear of possible disclosures
at the time of the establishment of the McCracken
Tribunal.
1147 Mr Lowry's actions in influencing the
awarding of the mobile phone licence were
'disgraceful' and 'insidious'.
The Tribunal found that his influence was both direct,
in his 'disgraceful action in bringing a guillotine down
on the work of the Project Group' and 'indirect and
insidious', arising from his interaction with the
chairman of the Project Group, and his intimation of
his views on the second-ranked consortium and on
how Esat Digifone's financial problems could be met.
(Chapter 60.34 page 1054)
1144 The dealings between Michael Lowry and
Denis O'Brien regarding France Telecom:
Shortly after the announcement of the competition on
2 March 1995, The Project Group adopted a protocol
to regulate contact with potential bidders.
The Tribunal is satisfied that Mr John Loughrey
Secretary General of the Department brought to the
attention of Mr Lowry in early March 1995 and had
advised Mr Lowry to exercise caution around
contacts with declared contestants and potential
participants and understood that Mr Lowry had
accepted that advice (Volume II, Chapter 12.08 page
202 )
The report says that unless references to Mr Lowry in
Mr O'Brien's fax to Mr Prelz and diary entries for 4
April 1995 were what it describes as figments of Mr
O'Brien's imagination - of which it says there was no
suggestion - there can be no doubt that Mr O'Brien
did meet Mr Lowry on 4 April 1995 and that Mr Lowry
did inform Mr O'Brien that France Telecom had no
partner for the GSM competition. (Volume I, page
203)
That was information, which on the basis of the
evidence heard by the Tribunal, could only have
been learned from Mr Lowry from within his own
Department which had received a delegation from
France Telecom some five days earlier.
1141 Mr Lowry deprived the Government of its
decision-making function.
Lowry is described has having a 'strategy' of
depriving Government of an opportunity to scrutinise
and review the result of the process.
When Lowry learned that Esat Digifone had emerged
as leader in the comparative process but that there
was a financial obstacle, he ignored government
policy and proposed a bankability solution.
Lowry 'misled' the party leaders as to the clarity and
certainty of the result that he had recommended.
The report finds that 'most reprehensibly' Mr Lowry
sought to overreach his own party leader, John
Bruton, by 'intimating that the Government should
have no discretion' in the matter. (Chapter 60.31,
page 1054)
1140 The ESAT Telenor $50,000 donation to Fine
Gael:
A $50,000 donation made through Telenor was made
on behalf of ESAT Digiphone to Fine Gael.
The Tribunal says it was 'regrettable' that no
disclosure whatsoever was made to a public
tribunal of enquiry concerning the donation
'notwithstanding a substantial degree of knowledge
concerning the clandestine circumstances of the
payment' it says this observation applies to Fine Gael
who both in government and in opposition was
instrumental in establishing the Tribunal.
The Tribunal says the failure of those concerned in
not referring it to the tribunal was to have regard to
the significance of Mr Lowry's position who, at the
time of the donation (December 1995), was chairman
of the trustees of Fine Gael and an account holder on
behalf of the party.
'This omission betrayed a marked reluctance to
engage with the Tribunal and a sensitivity
surrounding the circumstances of the payment'
The Tribunal found that this payment was not one
ever intended for Mr Lowry personally
1138 Michael Lowry is not in Ireland at the moment
and says he was unaware the report would be
published today.
Denis O'Brien - who is in the country - is returning to
Dublin to consider the issues involved.
1137 Making reference to contact Mr Lowry had with
the project team deciding on the winning bid for the
GSM licence, the Tribunal says an account of a
phone call between the Minister and Fintan Towey of
the project team - given by Mr Lowry - was 'wholly
unconvincing' and the account furnished by Mr
Towey 'more cogent and persuasive'.
Mr Lowry had spoken to the officials in regard to
whether a decision had been made already on the
winning bid. (Executive Summary page 1093)
1135 In advance of the closing date of the
competition, Esat Digifone had available to it
confidential information regarding the weighting
matrix adopted by the project group that it was not
entitled to have and which could have conferred an
advantage on the constortium.
But the Tribunal says it is unable to conclude how
Esat got this information.
Had this circumstance become known to the
Department at the time, it would have seen that
fairness and the integrity of the process would have
dictated at a minimum that this information be share
with other potential bidders.
It adds that the department would have been obliged
to inquire into the precise circumstances in which the
confidentiality of its process had been breached to
consider any culpability on the part of Esat Digifone
and to determine the appropriate course to be taken
to regularise matters. (Chapter 61.43 page 1075)
1133 In June of 1995 a press release from the
Department said the mobile licence process was
being delayed whilst 'certain aspects' of the process
were discussed with the European Commission.
The Commission had written to the Department in
April taking exception to a number of issues with the
tender process including, the ranking of licence fee
criterion ahead of issues such as coverage and
performance. It also took exception to the non-
disclosure of weightings which would be applied to
evaluation criteria.
The report comments that documents in the
possession of East Telecom were 'never intended
to any applicant', the documents were confidential
correspondence between then Minister Michael
Lowry and EU Commissioner Van Meirt.
The documents had made their way to the tribunal via
Mr Jarleth Burke who had represented Mr O'Brien's
interests in dealing with the Commission and the
Department, the Tribunal said they were documents
which Mr Burke had 'no business having in his
possession'.
The documents contained 'sensitive information' on
the weighting adopted by the project group.
1132 The Marlborough house arbitration:
Mr Lowry sought to procure unwarranted rent
increases that over a seven-year period would have
improperly enriched Mr Ben Dunne.
Mr Lowry sought to influence the outcome of an
arbitration being conducted in 1995 in relation to the
rent payable by the tenant (Marlborough House) to a
company owned and controlled by Mr Dunne in which
he had acquired a landlord's interest.
Tribunal finding re Marlborough House rent review:
'What was contemplated and attempted on the part of
Mr Dunne and Mr Lowry was profoundly corrupt to a
degree that was nothing short of breathtaking'
1129 The 'most pervasive and abusive instance' of
Michael Lowry's influence on the awarding of the
mobile phone licence to Esat Digifone was his action
in withdrawing time from the Project Group, when
they had requested an extension to their work
because they were not convinced that Esat Digifone
should be nominated as the winner.
The Group had asked for extra time because they
were confused about the weightings applied and how
the result had emerged, and wanted an opportunity to
revisit and review the evaluation.
1124 It is 'beyond doubt' that Mr Lowry imparted
substantive information to Mr O'Brien which was 'of
significant value and assistance to him in securing
the licence'. (Chapter 60.23, page 1051)
1122 Michael Lowry used a 'groundless rumour'
relating to the Persona consortium to his advantage.
The rumour related to the assertion that if Persona
won the contract it would lead to a 'nest egg' for a
former prominent Fianna Fil politican.
The report found that Mr Lowry relayed this to the
then Taoiseach John Bruton in endeavouring to
convince him that there was 'no room for Government
discretion on his recommendation' that Esat Digifone
should be awarded the contract. (Chapter 60.20,
page 1050)
1119 The report makes reference to Mr O'Brien's
companies contributing 22,140 in donations to
Fine Gael between 1995 and 1996.
Observing their 'conspicuous support' of Fine Gael
fundraising events in early 1995 'succeeded' in
raising the his company profile to an 'appreciable
degree' which was not 'remotely matched' by
members of other bidding consortia.
1118 Michael Lowry, TD, displayed 'an
appreciable interest' in the process and had
'irregular interactions with interested parties at
its most sensitive stages'.
It also found that Mr Lowry sought and received
substantive information on emerging trends and
made his preferences on the leading candidates
known.
He conveyed his views on how the financial
weaknesses of East Digifone should be countered.
Mr Lowry proceeded to bypass consideration by
his Cabinet colleagues and thereby not only
influenced, but delivered the result that Esat
Digifone had won the evaluation process which
ultimately led to the licensing award.
The report describes these matters as elements of
Michael Lowry's 'insidious and pervasive influence'
on the process.
1111 The Moriarty Tribunal refers to contact
between Michael Lowry and Denis O'Brien during
1995 and ahead of the awarding of a GSM licence
as 'inadvisable and possibly indiscreet' on Mr
Lowry's part.
They spoke about the project at a Fine Gael function
in March 1995.
However the tribunal on page 1073 says it recognised
"the information conveyed was hardly confidential".
1100 Moriarty Tribunal has published its findings in a
two-part repo The report from the Moriarty Tribunal has criticised the Fine Gael
party for not revealing the clandestine nature of a $50,000 donation made by Denis O'Brien
after his company won Ireland's second mobile phone licence competition.

The Tribunal said payment was made with false documentation and was designed to be
concealed.

It found Mr O'Brien instigated the payment of $50,000 to Fine Gael two months after his
company ESAT Digifone won the GSM licence.

The Tribunal found that then Minister for Communications and Fine Gael TD Michael Lowry
did not personally benefit from the donation.
It found that the donation was made by ESAT's Norwegian partners Telenor but reimbursed by
Mr O'Brien's company.

The Tribunal rejected as spurious claims that the donation came from Telenor because of its
interest in Irish afairs.

The Tribunal also found that businessman the late David Austin, a close friend of then Mr
Lowry, was a conduit for the donation and the money held in an of shore Jersey Island
account before being passed on to Fine Gael as Mr Austin's own donation.

The Tribunal found that when this tortuous process became known neither the donor nor the
recipient of the donation wished to keep it.

Then Fine Gael leader John Bruton ordered that the cheque be returned to Telenor who
refused to accept it and the Tribunal found that it finally came to rest somewhere in ESAT
Digifone.

Denis O'Brien - Says the report is based on opinions and theories

Moriarty Tribunal Report a highly selective
presentation of information to suit theory
The Moriarty Tribunal Report is based on the
opinions and theories of Mr Justice Michael Moriarty
and his legal team using highly selective materials.
It is a travesty of justice that this report can put
forward opinions based on using only the materials
that suit a pre-determined position whilst rejecting
everything else.
Indeed, Mr Justice Moriarty in this report states that
in evidential terms hearsay must be treated with the
utmost caution yet it is in hearsay, and hearsay alone,
that he reaches his findings on, for example, the
Hartigan's post-match drink.
Evidence rejected
Extraordinarily, the Report utterly rejects the
overwhelming sworn evidence provided by 17 civil
servants from the Department of Transport, Energy &
Communications and the Department of Finance, five
Government Ministers, two barristers from the Office
of the Attorney General, a former Taoiseach, a Senior
Counsel to the Irish State, and Professor Michael
Andersen, Principal of AMI - the internationally-
renowned world experts in this field who advised the
Irish Government on the awarding of the second
mobile phone licence process.
It is of grave concern that the sworn evidence from so
many reputable individuals has been completely
ignored. Every one of those witnesses confirmed
unequivocally that Michael Lowry did not interfere in
any way with the second mobile phone licence
process.
The Tribunal has employed an approach to this
Report which is flawed and compromises its own
integrity and that of the Oireachtas which established
it.
Let me remind you that when delivering judgement on
the modus operandi of tribunals in March 2010, Mr
Justice Adrian Hardiman of the Supreme Court said:
"This Tribunal manifests two features of a tribunal
of inquiry which are, in my opinion, fraught with great
risks for justice. The first is that the investigative
function - that carried out by the garda in relation to
criminal matters - and the adjudicative function, or the
function of making findings - that carried out by the
Courts in criminal matters - are, in the case of a
tribunal, conferred on a single person"
The Tribunal has been so flawed in its approach that
in fact in 2010, Mr. Justice Moriarty was forced to
admit to having made two 'not insignificant errors'.
One of those "errors" was that the Tribunal published
a critically important Ruling in 2008 that was false
and which it knew to be false.
Licence awarded to Esat Digifone fairly and on
merit
All of the evidence from the civil servants and
members of the Project Team involved in awarding
the second mobile phone licence was that the bid
process was not interfered with. All of the evidence to
the Tribunal was that Esat Digifone won the bid fairly.
This view is endorsed by the evidence of Professor
Michael Andersen, given in October and November
2010. AMI are internationally-renowned experts in
their field and advised the Irish Government
throughout the second mobile phone licence process.
AMI have overseen or conducted more than 200
licence processes in over 70 jurisdictions.
In his evidence, Professor Andersen stated that
"Michael Lowry simply did not feature in the
competition process. I am confident that if any such
interference on his part existed then I would have
become aware of it as part of my central and critical
involvement in the GSM 2 process."
Professor Andersen reiterated clearly the evidence
provided by other members of the project team
awarding the licence, that Esat Digifone presented
the best bid and were selected exclusively on merit.
He firmly stated that "as far as AMI was concerned,
the licence competition process was conducted fairly
and without any untoward interference or influence
being brought to bear."
Professor Andersen further said that the Esat
Digifone bid was the "clear winner" of the licence
competition process and that the "Esat Digifone bid
was one of the best they had ever seen in their
widespread experience of managing mobile phone
competitions worldwide".
The truth about the conversation in Hartigan's
In the Report, Mr Justice Moriarty states that it is his
opinion that I met with Mr Michael Lowry in Hartigan's
Pub on 17 September 1995 and that during that
meeting we discussed the progress of the Esat
Digifone application.
The facts are as follows: Yes, I met with Michael
Lowry, a fact I have never denied. In fact it was me
who brought this to the Tribunal's attention. I had
bumped into him earlier at the All-Ireland Final and
suggested meeting for a drink. I am a businessman
and I identified an opportunity to speak with the
Minister of the day in relation to an issue in my fixed-
line business Esat Telecom. We did not discuss the
licence. I was very aware of the fact that it was a
taboo subject.
How the Chairman of the Tribunal, who wasn't party
to this brief conversation between two individuals,
could make such a leap of epic proportions beggars
belief.
Quite simply, Mr Justice Moriarty was not at this
meeting yet has made a finding about the
discussions. It is absolutely incredible, unacceptable
and contradictory of all acceptable judicial norms for
a High Court Judge to create his own version of a
conversation to fit his pre-determined conclusion.
I did not give a single red cent to Michael Lowry
In the Report, Mr Justice Moriarty also gives his
opinion that payment was made by me to Michael
Lowry. I emphatically reject this. This is yet another
example of the Tribunal presenting a hypothesis of a
series of unconnected events and transactions and to
shoehorn them to create an impression that money
was given to Michael Lowry is incorrect and unjust.
At no time did I make or attempt to make any
payment to Michael Lowry and not a single witness
gave evidence of any payment by me to him. I did not
give a single red cent to Michael Lowry, in his
capacity as a government minister, as a public
representative or as a private citizen.
Attempts by the Tribunal to connect a $50,000
donation to the Fine Gael party by Telenor to the
licence process were flawed and are accepted by the
Report as being a legitimate and perfectly legal
political donation.
However, the Tribunal Report makes assertions that
there are property and financial transactions which
led to benefit to Michael Lowry from me. Let me
repeat that at no time did I make or attempt to make
any payment to Michael Lowry.
The purchase of a property in Spain by me and a
loan which Michael Lowry took out in relation to a
house in Dublin are two completely separate and
unrelated transactions. Unequivocal evidence was
presented to the Tribunal that Michael Lowry was not
a beneficiary of what are two separate transactions
which the Tribunal attempted to link to create a
misleading impression.
Similarly, the three property transactions in the UK
investigated by the Tribunal are intended to
incorrectly suggest that I attempted to conceal the
transfer of money to Michael Lowry. The Tribunal has
yet again tried to connect totally unrelated
transactions to create a misleading impression.
Clear and unequivocal evidence was presented to the
Tribunal that the Doncaster Rovers Football Club deal
was exclusively mine. Michael Lowry had no hand,
act or part in this deal. Indeed the Tribunal Report
makes no finding that Michael Lowry benefited from
this transaction
As to the other properties, let me state once again
that I had nothing to do with either the Mansfield (a
derelict farm site in the UK Midlands) or Cheadle (a
Church Hall in the UK Midlands) deals and knew
nothing about them until they were brought to my
attention by the Tribunal in 2001.
This is because I had no direct or indirect interest in
either of them. The true fact is that no evidence
emerged to connect the transactions in the way that
the Tribunal's opinion has suggested.
Unequivocal evidence was presented to the Tribunal
that Michael Lowry was never a beneficiary of what
are two utterly separate transactions that have been
linked to create a misleading impression.
I bought a townhouse in Spain from Mr David Austin
in the summer of 1996 for the use of my parents. I
continued to own this property until I disposed of it a
few years ago.
All evidence and documentation made available to
the Moriarty Tribunal fully supports this position.
From evidence presented to the Moriarty Tribunal, I
was also made aware of a separate personal loan
transaction of IR147,000 between Mr David Austin
and Michael Lowry that I knew nothing about at the
time and which is utterly unconnected.
Similarly, I knew nothing about the Mansfield
transaction until the Tribunal brought it to my attention
in 2001. I had nothing to do with the purchase of this
property and have never had any direct or indirect
interest in it.
An attempt to connect the funding of this transaction
to me by way of suggesting that a long-standing
arrangement that was in place with Aidan Phelan with
regard to signing rights on a capital account in Credit
Suisse Boston Capital is both unfair and incorrect.
A documented agreement whereby Aidan Phelan
transferred a fixed sum for professional fees from this
account has been deliberately misrepresented by the
Tribunal in an attempt to create a connection that
simply never existed.
Again, I knew nothing about the Cheadle transaction
until the Tribunal brought it to my attention in 2001. I
had nothing to do with the purchase of the property
and have never had any direct or indirect interest in it.
Furthermore, I had neither an involvement nor
knowledge of any loan for the property involving
Woodchester Bank.
All sworn evidence and supporting documentation
given to the Tribunal proves that this property was
purchased by Aidan Phelan. The transaction was
funded by a loan he raised and documentation clearly
proves he was the beneficiary of 100% of the
proceeds of the subsequent sale of the property.
The Tribunal has attempted to create an obscure
connection between Michael Lowry and me relating
to loans from Woodchester Bank. The facts provided
in evidence are that Michael Lowry received no loan
from Woodchester Bank or indeed any other entity in
relation to the Cheadle property.
The attempt by the Tribunal to use these property
transactions to connect payments from me to Michael
Lowry is nothing more than a tapestry of supposition.
My conscience is clear
In conclusion, I disagree with and utterly reject the
opinions expressed in this Report. Mr Justice
Moriarty has allowed opinion and supposition to
replace evidence and proper process.
My own conscience is clear on the matters
investigated. I am satisfied with the wholly-merited
success of the Esat Digifone Tender back in 1996
and am proud of the diference winning that licence
made to the competitive landscape for telephony in
Ireland. The success in winning this licence laid the
foundation for Digicel and its growth around the
world. Digicel now has networks in 32 countries
employing thousands of people around the world.
The Tribunal is made up of only one member, Mr
Justice Moriarty, who was expected to present what
is referred to as a "reasoned expression of opinion
relating to the matters he has investigated" with no
legal efect or consequences.
He has completely failed to do this and instead
produced a work of fiction that is so far from the truth
that it is now incumbent on the judiciary to investigate
the conduct of Mr Justice Michael Moriarty and the
Tribunal legal team for the manner in which they
conducted themselves.
https://www.rte.ie/news/2011/0322/298932-moriarty/

Moriarty Report summary1

http://moriarty-tribunal.ie/wp-
content/uploads/2016/09/SITECONTENT_26.pdf

Moriarty Report summary2

http://moriarty-tribunal.ie/wp-
content/uploads/2016/09/sitecontent_426.pdf
When the next property crash happens, remember this headline
WHY was #Anglo bank's subsidiary in
#Vienna NEVER discussed in the
Dal?!? #JonathanSugarman
@EamonnBlaney parlament
h t t p s : / / w w w.
banking subsidiary, Anglo Irish Bank ... Vienna Martin Brodey (M&A), ...

Media Information Vienna, December 2008

DORDA BRUGGER JORDIS Advises Valartis Group on the

Acquisition of Anglo Irish Bank Austria

http://www.dorda.at/sites/default/files/Pressinfo_engl20081223.pdf

Anglo Irish Banks

subsidiary in Austria linked
to secret deposit schemes
Austrian bank sought business from firm that set up
offshore trusts for customers
Fri, Jun 14, 2013, 01:11 Updated: Fri, Jun 14, 2013, 07:56

Simon Carswell

Records relating to the Austrian bank are among more than two million secret
files obtained by the International Consortium of Investigative Journalists
(ICIJ) that expose covert companies and trusts in the British Virgin Islands
(above), the Cook Islands and other ofshore havens.
Anglo Irish Banks subsidiary in Austria sought out
business from a company that set up offshore trusts for
customers, recommending the Irish-owned bank in
Vienna as a good place to deposit money secretly.
http://www.irishtimes.com/business/financial-services/anglo-irish-
bank-s-subsidiary-in-austria-linked-to-secret-deposit-schemes-
1.1428103?mode=sample&auth-failed=1&pw-origin=http%3A%2F
%2Fwww.irishtimes.com%2Fbusiness%2Ffinancial-services
%2Fanglo-irish-bank-s-subsidiary-in-austria-linked-to-secret-deposit-
schemes-1.1428103

Swiss-Based Valartis Buys Austrian Subsidiary of Irish Bank

http://www.milleniumassociates.com/PDF/WealthBriefing%20Swiss-
based%20Valartis%205Sep2008.pdf

DORDA receives ILFR award for consultancy

role in HETA case: European Restructuring
Deal of the Year
Datum:
Wednesday, 26 April 2017

The internationally renowned British trade journal International Financial Law Review (ILFR) has
honoured DORDA with the European Restructuring Deal of the Year award for its consultancy
work in the HETA debt restructuring deal.

Andreas Zahradnik, DORDA partner and head of the law firms Banking & Finance Desk,
accepted the prize on behalf of his team at the IFLR European Awards 2017 in London on 21
April 2017. This complex case was negotiated across several jurisdictions and resulted in a
solution that was acceptable for the numerous creditors in October 2016 when the offer to buy
back over EUR 10 billion in outstanding debt owed by HETA ASSET RESOLUTION AG was agreed.
The jury described it as "a true landmark on a European level which forged a path through an
untested and politically delicate process". Along with DORDA and GRG, who advised the HETA
creditors in the par investor pool, the prize was also awarded to the other parties advisors
involved in the deal.

Andreas Zahradnik and law firm partner Bernhard Mller, head of the DORDA Public Law Desk,
led a team of Austrian lawyers that advised a large group of HETA creditors during the process
of asserting their claims. Members of the DORDA team included lawyers Christoph Hilkesberger
and Stephan Steinhofer and associate Christian Krger-Schller. The German advisers to the
creditors in the par investor pool (banks, insurers, asset managers and public institutions), a
team from German leading independent business law firm GRG, acted under the leadership of
Roland Hoffmann-Theinert.

At the beginning of October 2016, the Carinthian Compensation Payment Fund (Krntner
Ausgleichszahlungsfonds KAF) confirmed that the public offer to buy back approximately 10.8
billion in outstanding debt instruments owed by HETA ASSET RESOLUTION AG (HETA) had been
accepted with an overwhelming majority. A Memorandum of Understanding negotiated between
a group of HETA creditors (which also included the creditors advised by DORDA) and the
Republic of Austria back in May 2016 was used as the basis for the offer presented to the HETA
creditors in October. Under the terms of the buyback offer, the HETA creditors will receive
approximately 90% of their claims (for HETA senior debt securities).

The creditors in the par investor pool had already been advised by GRG and DORDA BRUGGER
JORDIS in connection with the administrative proceedings against the moratorium imposed by
the FMA (Austrian Financial Market Authority) on 1 March 2015 and the bail-in imposed on 11
April 2015. GRG and DORDA have assisted the par investor pool since then regarding
coordination with other creditor groups and the conclusion of the lock-up agreement widely
covered by the media, all the way to the now accepted offer.

DORDA is a leading law firm in Austria and advises in all areas of business law. In addition to
banking and capital markets law, M&A, corporate law and restructuring, the firm's core practice
areas also include public law, antitrust law, tax law, employment law, real estate law, private
client as well as IT and IP.

Anglo Irish Banks strategy concentrates on a relationship ... Anglo

Irish Bank PDF Anglo R&A02 Front aw 20/12/02
http://globaldocuments.morningstar.com/documentlibrary/document
/5982bdb41b10f938.msdoc/original
irish bank resolution corporation bill 2013 _____ mar a ... bank of ireland to
maintain the functioning of ibrc to ... subsidiary
http://www.oireachtas.ie/documents/bills28/bills/2013/913/b913d.pdf
Credit Institutions (Financial ... This document is for reference
and ... Anglo IrishBank Corporation p.l.c. and its subsidiary Anglo Irish Bank
http://www.finance.gov.ie/sites/default/files/faqbankguar2008.pdf

ANGLO IRISH BANK CORPORATION PLC v.

SUPERIOR COURT
Court of Appeal, Second District, Division 3, California.

ANGLO IRISH BANK CORPORATION, PLC, et al., Petitioners, v. The

SUPERIOR COURT of Los Angeles County, Respondent;

Kal Brar et al., Real Parties in Interest. Stewart Davies et al.,

Petitioners, v. The Superior Court of Los Angeles County, Respondent;
Kal Braret al., Real Parties in Interest.

Nos.B206714, B206715.

Decided: August 04, 2008

Holland & Knight, Richard T. Williams and D. Casey Flaherty, Los Angeles, for
Petitioners. No appearance for Respondent. Goldfarb, Sturman & Averbach,
Steven L. Feldman and Steven L. Crane, Encino, for Real Parties in Interest.

In these consolidated writ proceedings, several nonresident defendants challenge the denial of
their motions to quash service of summons based on lack of personal jurisdiction. 1 They
contend their contacts with the State of California are insufficient to justify the exercise of
personal jurisdiction in this state. They also contend the trial court applied an improper
standard of proof and erred in finding that two individual defendants made false
representations to the plaintiffs at a meeting in California. We reject these arguments.

We conclude that by soliciting investors in California through the personal visits of their
employees and others, Petitioners established sufficient contacts with California to justify the
exercise of specific personal jurisdiction in this state. We further conclude that activities that
are undertaken on behalf of a defendant may be attributed to the defendant for purposes of
personal jurisdiction if the defendant purposefully directed those activities at the forum state,
regardless of the specific requirements of alter ego or agency, and that state law of alter ego
and agency does not determine the constitutional limits to the exercise of specific personal
jurisdiction. The denial of the motions to quash was proper.

FACTUAL AND PROCEDURAL BACKGROUND

1.Factual Background2

The Irish bank is incorporated in and has its principal place of business in Ireland. The Isle
of Man bank and the trust company are incorporated in and have their principal places of
business in Isle of Man, and are subsidiaries of the Irish bank. Davies is a citizen and
resident of the United Kingdom. Davies became managing director of the trust company in
December 1999 and became a director of the Isle of Man bank in October 2000.3 Connolly is
a citizen and resident of Ireland. Connolly preceded Davies as managing director of the trust
company and was a director of the trust company from December 1999 to October 2000.
Connolly was a director of the Isle of Man bank from January 1999, or earlier, to December
2000 and was a senior manager for the Irish bank from October 2000 to June 2001.

The Irish bank, the Isle of Man bank, and the trust company sought investors who would
borrow funds from the Isle of Man bank to purchase investments known as with profit
bonds to be held in trust by the trust company. The Irish bank would review and approve
the investors' applications for credit. Davies visited California to meet with individuals who
might be interested in such a leveraged investment. At the request of the Irish bank,
Connolly accompanied Davies on the visit. The primary purpose of their meetings with
potential investors was to determine whether the potential investors were suitable investors.
Part of their responsibility in that connection was to satisfy Isle of Man's know your
customer anti-money laundering requirements by determining that the funds were from
legitimate sources.

Davies and Connolly jointly met with 10 or 11 potential clients in California in March 2000, 9
or 10 of whom decided to invest through the trust company. Their business cards handed
out at the meetings bore a logo for Anglo Irish Bank. Davies's card identified him as
managing director of the trust company. Connolly's card identified him as Head of Offshore
Trust Operations for the Irish bank.4 Mike McGee, who was then managing director of the
Isle of Man bank, also met with several potential investors in California a few months later.

Kal Brar and Imelda Brar are California residents. They are cotrustees of the Satnam Trust.
They met with investment advisors in late 1999 who encouraged them to invest abroad in
with profit bonds and to leverage their investments. The Brars caused more than $4
million from the Satnam Trust to be transferred to the Kivrar Trust, a trust organized under
the laws of Isle of Man, for the purpose of investing abroad in with profit bonds. More
than $3.3 million of the funds held by the Kivrar Trust were so invested as of early 2000.
The investment advisors then arranged for a meeting to take place at the Brars' home in
California to discuss the potential leveraging of their investments.

Accordingly, the Brars met with Davies and Connolly at the Brars' home in California in
March 2000. The Brars' attorney, Robert Klueger, and two investment advisors, Stanley
Chesed of PrimeGlobal and Andrew Peat, also were present at the meeting. The meeting
included discussions of the Brars' background, the source of their wealth, and leveraging with
profit bonds. After the meeting, the leveraging was approved and put in motion. The trust
company was appointed trustee of the Kivrar Trust in June 2000, a new trust called Kivrar
Trust II was created, and Kivrar Trust II borrowed funds in order to purchase additional with
profit bonds.

Davies visited California again in November 2000 to attend conferences in Los Angeles and
San Francisco on the subject of asset protection. The conferences were sponsored by
PrimeGlobal and included presentations on leveraging with profit bonds. Davies visited
California again in May 2001 to meet with investment advisors and at least one potential
investor regarding leveraged with profit bonds.5
The Brars' investments eventually suffered substantial losses. The Brars estimated that as of
December 2007 they had lost approximately $2 million of their initial investment.

2.Trial Court Proceedings

The Brars individually and Imelda Brar as a trustee of the Satnam Trust filed a complaint
against Petitioners and others in May 2005. Their first amended complaint filed in July
2005 alleges that based on the advice of their investment advisors, the Brars caused over $4
million held by Satnam Trust to be invested abroad in with profit bonds. They allege that
the investments were made through Kivrar Trust and other intermediaries. They allege that
their investment advisors represented that the investments were unique and that their
principal was absolutely guaranteed as long as they did not withdraw the money for five
years. They allege that the defendants, including Petitioners, conspired to deceive and
defraud them. The Brars allege counts against all defendants for (1) intentional
misrepresentation, (2) fraudulent concealment, (3) securities fraud (Corp.Code, 25401), (4)
breach of fiduciary duty, (5) negligent misrepresentation, and (6) an accounting.

Petitioners moved to quash service of summons based on lack of personal jurisdiction. The
trial court determined that Petitioners each had sufficient contacts with the State of California
to be subject to specific personal jurisdiction and denied the motions. The court stated that
the operations of the Irish bank, the Isle of Man bank, and the trust company were
integrated with respect to the leveraged with profit bonds investments and that personal
jurisdiction over the Irish bank could be based on the agency and/or representative services
basis.

The Irish bank, the Isle of Man bank, the trust company, Davies, and Connolly filed two
separate petitions for writ of mandate in this court, challenging the denial of their motions to
quash. We consolidated the two writ proceedings, stayed the trial court proceedings, and
issued an order to show cause.

CONTENTIONS

Petitioners contend (1) they have insufficient contacts with California to justify the exercise of
personal jurisdiction in this state; and (2) the trial court applied an improper standard of
proof and erred in finding that Davies and Connolly made false representations to the Brars.

DISCUSSION

1.Constitutional Limits on the Exercise of Personal Jurisdiction

A California court may exercise personal jurisdiction over a nonresident defendant to the
extent allowed under the state and federal Constitutions. (Code Civ. Proc., 410.10.) The
exercise of personal jurisdiction is constitutionally permissible only if the defendant has
sufficient minimum contacts with the state so that the exercise of jurisdiction does not
offend traditional notions of fair play and substantial justice. [Citations.] (Internat. Shoe
Co. v. Washington (1945) 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (Internat. Shoe);
accord, Pavlovich v. Superior Court (2002) 29 Cal.4th 262, 268, 127 Cal.Rptr.2d 329, 58 P.3d
2 (Pavlovich).) In other words, the defendant's contacts with the forum state must be such
that the defendant had fair warning that its activities might subject it to personal
jurisdiction in the state. (Burger King Corp. v. Rudzewicz (1985) 471 U.S. 462, 472, 105 S.Ct.
2174, 85 L.Ed.2d 528 (Burger King); accord, World-Wide Volkswagen Corp. v. Woodson
(1980) 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490.)

In judging minimum contacts, a court properly focuses on the relationship among the
defendant, the forum, and the litigation. [Citations.] (Calder v. Jones (1984) 465 U.S. 783,
788, 104 S.Ct. 1482, 79 L.Ed.2d 804.) Each defendant's contacts with the forum State must
be assessed individually. (Id. at p. 790, 104 S.Ct. 1482.) Great care and reserve should be
exercised when extending our notions of personal jurisdiction into the international field.
(Asahi Metal Industry Co. v. Superior Court (1987) 480 U.S. 102, 115, 107 S.Ct. 1026, 94
L.Ed.2d 92 (Asahi).)

A defendant that has substantial, continuous, and systematic contacts with the forum state
is subject to general jurisdiction in the state, meaning jurisdiction on any cause of action.
(Perkins v. Benguet Consol. Mining Co. (1952) 342 U.S. 437, 445-446, 72 S.Ct. 413, 96 L.Ed.
485; see Vons Companies, Inc. v. Seabest Foods, Inc. (1996) 14 Cal.4th 434, 445, 58
Cal.Rptr.2d 899, 926 P.2d 1085 (Vons).) The Brars do not contend Petitioners are subject to
general jurisdiction. Instead, they contend and the court found that Petitioners are subject
to specific jurisdiction, meaning jurisdiction in an action arising out of or related to the
defendant's contacts with the forum state. (Helicopteros Nacionales de Columbia v. Hall
(1984) 466 U.S. 408, 414, fn. 8, 104 S.Ct. 1868, 80 L.Ed.2d 404; Vons, supra, 14 Cal.4th at p.
446, 58 Cal.Rptr.2d 899, 926 P.2d 1085.) Specific jurisdiction depends on the quality and
nature of the defendant's forum contacts in relation to the particular cause of action alleged.
(Cornelison v. Chaney (1976) 16 Cal.3d 143, 147-148, 127 Cal.Rptr. 352, 545 P.2d 264.)

A court may exercise specific jurisdiction over a nonresident defendant only if: (1) the
defendant has purposefully availed himself or herself of forum benefits' [citation]; (2) the
controversy is related to or arises out of [the] defendant's contacts with the forum'
[citation]; and (3) the assertion of personal jurisdiction would comport with fair play and
substantial justice' [citation]. (Pavlovich, supra, 29 Cal.4th at p. 269, 127 Cal.Rptr.2d 329,
58 P.3d 2.) The purposeful availment inquiry focuses on the defendant's intentionality.
[Citation.] This prong is only satisfied when the defendant purposefully and voluntarily
directs his activities toward the forum so that he should expect, by virtue of the benefit he
receives, to be subject to the court's jurisdiction based on his contacts with the forum.
[Citation.] (Ibid.)

[P]urposeful availment occurs where a nonresident defendant purposefully direct[s]

[its] activities at residents of the forum (Burger King, supra, 471 U.S. at p. 472[, 105 S.Ct.
2174]), purposefully derive[s] benefit from its activities in the forum (id. at p. 473[, 105
S.Ct. 2174]), create[s] a substantial connection with the forum (id. at p. 475[, 105 S.Ct.
2174]), deliberately has engaged in significant activities within the forum (id. at pp. 475-
476[, 105 S.Ct. 2174]), or has created continuing obligations between [itself] and residents
of the forum (id. at p. 476[, 105 S.Ct. 2174]). By limiting the scope of a forum's jurisdiction
in this manner, the purposeful availment requirement ensures that a defendant will not be
haled into a jurisdiction solely as a result of random, fortuitous, or attenuated contacts'
(Id. at p. 475[, 105 S.Ct. 2174].) Instead, the defendant will only be subject to personal
jurisdiction if it has clear notice that it is subject to suit there, and can act to alleviate the
risk of burdensome litigation by procuring insurance, passing the expected costs on to
customers, or, if the risks are too great, severing its connection with the state. (Pavlovich,
at p. 269[, 127 Cal.Rptr.2d 329, 58 P.3d 2], quoting World-Wide Volkswagen, supra, 444 U.S.
at p. 297[, 100 S.Ct. 559].) (Snowney v. Harrah's Entertainment, Inc. (2005) 35 Cal.4th
1054, 1063, 29 Cal.Rptr.3d 33, 112 P.3d 28 (Snowney).)

A controversy is related to or arises out of the defendant's forum contacts, so as to satisfy

the second requirement for the exercise of specific personal jurisdiction, if there is a
substantial connection between the forum contacts and the plaintiff's claim. (Vons, supra,
14 Cal.4th at p. 452, 58 Cal.Rptr.2d 899, 926 P.2d 1085.) The forum contacts need not be the
proximate cause or but for cause of the alleged injuries. (Id. at pp. 462-467, 58 Cal.Rptr.2d
899, 926 P.2d 1085.) The forum contacts also need not be substantively relevant to the
cause of action, meaning those contacts need not establish or support an element of the cause
of action. (Id. at pp. 469-475, 58 Cal.Rptr.2d 899, 926 P.2d 1085.) A claim need not arise
directly from the defendant's forum contacts in order to be sufficiently related to the contact
to warrant the exercise of specific jurisdiction. Rather, as long as the claim bears a
substantial connection to the nonresident's forum contacts, the exercise of specific jurisdiction
is appropriate. (Id. at p. 452, 58 Cal.Rptr.2d 899, 926 P.2d 1085.) Accordingly, in
evaluating the quality and nature of the defendant's forum contacts, we consider not only the
conduct directly affecting the plaintiff, but also the broader course of conduct of which it is a
part. (Cornelison v. Chaney, supra, 16 Cal.3d at p. 149, 127 Cal.Rptr. 352, 545 P.2d 264.)
In determining whether the exercise of jurisdiction would be fair and reasonable, so as to
satisfy the third requirement for the exercise of specific personal jurisdiction, a court must
consider (1) the burden on the defendant of defending an action in the forum, (2) the forum
state's interest in adjudicating the dispute, (3) the plaintiff's interest in obtaining relief, (4)
the interstate [or international] judicial system's interest in obtaining the most efficient
resolution of controversies, and (5) the states' or nations' shared interest in furthering
fundamental substantive social policies. (Asahi, supra, 480 U.S. at p. 113, 107 S.Ct. 1026;
see id. at p. 115, 107 S.Ct. 1026.) These considerations sometimes serve to establish the
reasonableness of jurisdiction upon a lesser showing of minimum contacts than would
otherwise be required. [Citations.] On the other hand, where a defendant who purposefully
has directed his activities at forum residents seeks to defeat jurisdiction, he must present a
compelling case that the presence of some other considerations would render jurisdiction
unreasonable.6 (Burger King, supra, 471 U.S. at p. 477, 105 S.Ct. 2174.)

The commission of a tortious act within the forum state ordinarily justifies the exercise of
specific personal jurisdiction in an action arising from the tortious act. (Magnecomp Corp. v.
Athene Co. (1989) 209 Cal.App.3d 526, 535-536, 257 Cal.Rptr. 278; Kaiser Aetna v. Deal
(1978) 86 Cal.App.3d 896, 901, 150 Cal.Rptr. 615; see Rest.2d Conflict of Laws, 36(1).)

2.Standard of Review

A plaintiff opposing a motion to quash service of process for lack of personal jurisdiction
has the initial burden to prove, by a preponderance of the evidence, facts establishing
purposeful availment and a substantial connection between the defendant's forum contacts
and the plaintiff's claim. (Snowney, supra, 35 Cal.4th at p. 1062, 29 Cal.Rptr.3d 33, 112 P.3d
28; DVI, Inc. v. Superior Court (2002) 104 Cal.App.4th 1080, 1090-1091, 128 Cal.Rptr.2d
683.) If the plaintiff satisfies that burden, the burden shifts to the defendant to show that the
exercise of jurisdiction would be unreasonable, that is, would not comport with fair play and
substantial justice (Burger King, supra, 471 U.S. at p. 476, 105 S.Ct. 2174). (Snowney,
supra, at p. 1062, 29 Cal.Rptr.3d 33, 112 P.3d 28; Vons, supra, 14 Cal.4th at p. 449, 58
Cal.Rptr.2d 899, 926 P.2d 1085.) If there is no conflict in the evidence, the question whether
a defendant's contacts with California are sufficient to justify the exercise of personal
jurisdiction in this state is a question of law that we review de novo. (Snowney, supra, at p.
1062, 29 Cal.Rptr.3d 33, 112 P.3d 28.) If there is a conflict in the evidence underlying that
determination, we review the trial court's express or implied factual findings under the
substantial evidence standard. (Vons, supra, 14 Cal.4th at p. 449, 58 Cal.Rptr.2d 899, 926
P.2d 1085.) Although the parties here dispute their opponents' characterization of the facts,
there is no material conflict in the evidence itself, so our review is de novo. 7 (Great-West Life
Assurance Co. v. Guarantee Co. of North America (1988) 205 Cal.App.3d 199, 204, 252
Cal.Rptr. 363.)

3.Petitioners Purposely Availed Themselves of Forum Benefits

The Irish bank, the Isle of Man bank, and the trust company worked closely together in
connection with the leveraged investments. The Irish bank reviewed and approved credit
applications on behalf of the Isle of Man bank, which made the loans, and the trust company
served as trustee of the trusts holding the with profit bonds that were purchased using the
loan proceeds. Davies, Connolly, and McGee visited California for the purpose of meeting
with suitable investors who would be willing to invest in leveraged with profit bonds and
whose investment funds were from legitimate sources. Davies was managing director of the
trust company at the time of his first visit to California and was a director of the Isle of Man
bank at the time of his later visits to this state. Connolly was employed by the trust company
at the time of his visit to California and was also a director of the Isle of Man bank at that
time. McGee was managing director of the Isle of Man bank at the time of his visit to this
state. Although Connolly was not an employee of the Irish bank at the time, he visited
California at the request of the Irish bank and in furtherance of the common interests of the
three entities.
The business cards handed out by Davies and Connolly exemplified the close relationship
among the three entities for purposes of the leveraged investments. Davies's card bore an
Anglo Irish Bank logo yet identified him as managing director of the trust company.
Connolly's card bore the same logo and identified him as Head of Offshore Trust Operations
for the Irish bank, although he was not formally employed by the Irish bank at the time.

A corporation or other business entity acts through authorized individuals, and the
activities of its employees are attributed to the business entity for purposes of personal
jurisdiction. (Internat. Shoe, supra, 326 U.S. at pp. 316-317, 320, 66 S.Ct. 154.) An
individual's status as an employee acting on behalf of his or her employer does not insulate
the individual from personal jurisdiction based on his or her forum contacts. (Calder v.
Jones, supra, 465 U.S. at p. 790, 104 S.Ct. 1482; Taylor-Rush v. Multitech Corp. (1990) 217
Cal.App.3d 103, 115-118, 265 Cal.Rptr. 672 [rejected the fiduciary shield doctrine]; but see
Mihlon v. Superior Court (1985) 169 Cal.App.3d 703, 713-716, 215 Cal.Rptr. 442 [dictum].)
Apart from an employment relationship, activities that are undertaken on behalf of a
defendant may be attributed to that defendant for purposes of personal jurisdiction if the
defendant purposefully directed those activities toward the forum state. (See Burger King,
supra, 471 U.S. at p. 479, fn. 22, 105 S.Ct. 2174;8 Empire Steel Corp. v. Superior Court (1961)
56 Cal.2d 823, 835, 17 Cal.Rptr. 150, 366 P.2d 502 (Empire Steel).)

Empire Steel held that specific personal jurisdiction over a foreign parent corporation was
established based on the parent's manipulation and control of its California subsidiary to
the detriment of the subsidiary's creditors. (Empire Steel, supra, 56 Cal.2d at p. 831, 17
Cal.Rptr. 150, 366 P.2d 502.) The plaintiff sought to recover damages caused by the
subsidiary's failure to take delivery of steel purchased from the plaintiff. (Id. at p. 826, 17
Cal.Rptr. 150, 366 P.2d 502.) Empire Steel concluded that the evidence supported the
inference that Empire knowingly caused its California subsidiary to make the contracts in
suit while [the subsidiary] was in fact insolvent but had the appearance of financial
responsibility. (Id. at p. 832, 17 Cal.Rptr. 150, 366 P.2d 502.) The California Supreme
Court stated that the court need not decide whether the parent was the alter ego of its
subsidiary, and that [t]he essential thing is merely whether the corporations are present
within the state, whether they operate through an independent contract, agent, employee or in
any other manner. [Citations.]9 (Id. at p. 835, 17 Cal.Rptr. 150, 366 P.2d 502.) Thus, a
parent corporation's purposefully causing its subsidiary to engage in forum contacts may
constitute purposeful availment by the parent even if the separateness of the corporations is
maintained and alter ego is not established.10 (Ibid.; Northern Natural Gas Co. v. Superior
Court (1976) 64 Cal.App.3d 983, 994-995, 134 Cal.Rptr. 850; Rest.2d Conflict of Laws, 52,
com. b, p. 180.11 )

In our view, reliance on state substantive law of agency and alter ego to determine the
constitutional limits of specific personal jurisdiction is unnecessary and is an imprecise
substitute for the appropriate jurisdictional question. The proper jurisdictional question is
not whether the defendant can be liable for the acts of another person or entity under state
substantive law, but whether the defendant has purposefully directed its activities at the
forum state by causing a separate person or entity to engage in forum contacts. That
constitutional question does not turn on the specific state law requirements of alter ego or
agency, although the inquiry may be similar in some circumstances.12 (See Hoffman, The
Case Against Vicarious Jurisdiction (2004) 152 U. Pa. L.Rev. 1023, 1026-1027, 1086-1090;
1097-1098; Comment, Agency as a Means of Obtaining Jurisdiction in New York Over
Foreign Corporations: A Failed Theory (1993) 20 Brook. J. Int'l L. 169, 196-202; Jurisdiction
Over a Corporation Based on the Contracts of a Related Corporation: Time for a Rule of
Attribution (1988) 92 Dick. L.Rev. 917, 925-944;13 cf. Vons, supra, 14 Cal.4th at pp. 464, 475,
58 Cal.Rptr.2d 899, 926 P.2d 1085;14but see VirtualMagic Asia, Inc. v. Fil-Cartoons, Inc.
(2002) 99 Cal.App.4th 228, 244-246, 121 Cal.Rptr.2d 1 [stated that principles of alter ego and
agency can establish a basis for specific personal jurisdiction and remanded those issues for
the trial court to decide]; Magnecomp Corp. v. Athene Co., supra, 209 Cal.App.3d at pp. 535-
539, 257 Cal.Rptr. 278 [applied state law of agency in finding specific personal jurisdiction
over a foreign corporation]; Northern Natural Gas Co. v. Superior Court, supra, 64
Cal.App.3d at pp. 992-995, 134 Cal.Rptr. 850 [same]; Vons, supra, 14 Cal.4th at p. 459, fn. 7,
58 Cal.Rptr.2d 899, 926 P.2d 1085 [stated in dictum, corporate veils may be pierced and
agents' activities may be considered in appropriate cases]; Brilmayer & Paisley, Personal
Jurisdiction and Substantive Legal Relations: Corporations, Conspiracies, and Agency (1986)
74 Cal. L.Rev. 1.)

Davies, Connolly, and McGee visited California for the purpose of engaging in economic
activity with California residents. Contrary to Petitioners' argument that they only sought to
satisfy Isle of Man's know your customer requirements, the purpose of satisfying those
requirements was to make the leveraged investments possible. They discussed leveraging
with profit bonds with the Brars and other potential investors during the visit by Davies and
Connolly in March 2000, McGee's visit a few months later, and Davies's visit in May 2001.
Through those visits, they succeeded in garnering millions of dollars in investments from
California residents.

The evidence supports the conclusion that in doing so, the individuals acted not only on
behalf of their employers, the Isle of Man bank and the trust company, but also on behalf of
the Irish bank. Connolly testified in his deposition that he visited California to meet with
potential investors at the specific request of the Irish bank, which relied on his experience and
expertise both in evaluating the prospective clients and in answering any questions regarding
the leveraged investments. Moreover, Connolly's business card identifying him as Head of
Offshore Trust Operations for the Irish bank and the need to obtain approval from the Irish
bank to make the loans are further evidence that Connolly in particular was acting on behalf
of the Irish bank as well as the other entities.

Accordingly, we conclude that the Irish bank, the Isle of Man bank, and the trust company
purposefully directed their activities at California residents by and through the individuals
who visited California on their behalf. We conclude further that Petitioners, and each of
them, purposefully derived benefit from their activities in California and deliberately engaged
in significant activities within this state, and that they therefore purposefully availed
themselves of forum benefits.15

4.The Dispute Is Substantially Connected to Petitioners' California Activities

The second requirement for specific personal jurisdiction is that there must be a substantial
connection between the dispute and the defendant's forum activities. (Snowney, supra, 35
Cal.4th at pp. 1062, 1068, 29 Cal.Rptr.3d 33, 112 P.3d 28.) The plaintiffs' six counts for
intentional misrepresentation, fraudulent concealment, securities fraud, breach of fiduciary
duty, negligent misrepresentation, and an accounting all are based on alleged
misrepresentations in or omissions from statements made to them in California by Davies,
Connolly, and others in an effort to solicit business from California residents. Because the
alleged harm relates directly to Petitioners' activities in California, we conclude that there is a
substantial connection between the dispute and Petitioners' forum activities. (Id. at p. 1069,
29 Cal.Rptr.3d 33, 112 P.3d 28.) By purposefully and successfully soliciting the business of
California residents, defendants could reasonably anticipate being subject to litigation in
California in the event their solicitations caused an injury to a California resident. (See
Burger King, supra, 471 U.S. at pp. 475-476[, 105 S.Ct. 2174].) (Ibid.)

5.The Exercise of Personal Jurisdiction Would Be Fair and Reasonable

The third requirement for specific personal jurisdiction is that the exercise of jurisdiction
must be fair and reasonable. (Snowney, supra, 35 Cal.4th at pp. 1062, 1070, 29 Cal.Rptr.3d
33, 112 P.3d 28.) Petitioners argue that after creating offshore trusts for the apparent
purpose of removing assets from the jurisdiction of California courts, the plaintiffs should not
be allowed to sue foreign defendants in California courts just because their investment did
not prove as fruitful as they had hoped. We conclude that by investing in foreign trusts, the
plaintiffs did not waive the right to sue Petitioners in a California court to seek redress for
injuries related to or arising out of Petitioners' California activities. Moreover, the plaintiffs
do not allege only that the investments were unsuccessful, but that Petitioners made material
misrepresentations and omissions in California in connection with the investments.
Petitioners also argue that it would be an extreme burden for them to have to defend this
action in California. Contrary to Petitioners' contention, the denial of the motions to quash
was not based on a finding that Davies and Connolly made false representations at the
meeting, and the trial court made no such finding. Accordingly, Petitioners have shown no
error in this regard.

DISPOSITION

The petitions are denied. The order to show cause is discharged, and the stay of trial court
proceedings previously issued is lifted. The Brars are entitled to recover their costs in these
consolidated appellate proceedings.

FOOTNOTES

1. The petitioners are Anglo Irish Bank Corporation PLC (the Irish bank), Anglo Irish Bank
Corporation (I.O.M.) P.L.C. (the Isle of Man bank), Anglo Irish Trust Company Limited (the
trust company), Stewart Davies, and Enda Connolly (collectively Petitioners).

2. The material facts are undisputed, except as noted.

3. A managing director is the equivalent of a chief executive officer.

4. Connolly testified in his deposition that he used that title to distinguish himself from
Davies, with whom he was working closely while Davies learned his new job as managing
director of the trust company. Connolly testified that he did not have any title with the
Irish bank at the time and that he did not understand why the card stated that he did. He
acknowledged, however, that he visited California to meet with potential investors at the
specific request of the Irish bank.

5. Davies declared that he met with only investment advisors and representatives of trust
companies during his visit to California in May 2001 and solicited no business for the trust
company on that visit. The Brars, however, presented a declaration by Francis Good
describing his meeting with Davies and others in California in May 2001 to discuss potential
leveraged investments in with profit bonds, and a memorandum by Davies describing the
meeting. The trial court resolved the conflict in the evidence by finding that the meeting had
occurred. Substantial evidence supports that finding.

6. Burger King, supra, 471 U.S. at pages 477-478, 105 S.Ct. 2174, stated further: For
example, the potential clash of the forum's law with the fundamental substantive social
policies' of another State may be accommodated through application of the forum's choice-of-
law rules. Similarly, a defendant claiming substantive inconvenience may seek a change of
venue. Nevertheless, minimum requirements inherent in the concept of fair play and
substantial justice may defeat the reasonableness of jurisdiction even if the defendant has
purposefully engaged in forum activities. [Citations.] As we previously have noted,
jurisdictional rules may not be employed in such a way as to make litigation so gravely
difficult and inconvenient that a party unfairly is at a severe disadvantage in comparison to
his opponent. [Citations.] (Fns. omitted.)

7. The only notable exception is the conflicting evidence concerning Davies's visit to
California in May 2001. (See fn. 5, ante.)

8. Burger King stated in dicta: We have previously noted that when commercial activities
are carried on in behalf of an out-of-state party those activities may sometimes be ascribed to
the party, International Shoe Co. v. Washington, 326 U.S. 310, 320, 66 S.Ct. 154, 90 L.Ed. 95
(1945), at least where he is a primary participan[t] in the enterprise and has acted
purposefully in directing those activities, Calder v. Jones, 465 U.S., at p. 790[, 104 S.Ct.
1482]. (Burger King, supra, 471 U.S. at p. 479, fn. 22, 105 S.Ct. 2174.)
9. The exercise of personal jurisdiction formerly depended on the defendant's presence
within the forum state. Internat. Shoe held that a corporation was present within the state
if its contacts with the state were sufficient to make the exercise of personal jurisdiction fair
and reasonable, and thus shifted the focus from presence to minimum contacts.
(Internat. Shoe, supra, 326 U.S. at pp. 316-317, 66 S.Ct. 154; see Shaffer v. Heitner (1977) 433
U.S. 186, 203-204, 97 S.Ct. 2569, 53 L.Ed.2d 683.)

10. We do not regard the use of the word manipulation in Empire Steel, supra, 56 Cal.2d
at page 831, 17 Cal.Rptr. 150, 366 P.2d 502, as intended to strictly limit the circumstances in
which purposeful availment may be found when a parent corporation causes its subsidiary to
engage in forum contacts on its behalf. Instead, we believe that manipulation of a
subsidiary is only one example of a parent corporation's purposefully directing the activities of
its subsidiary in the forum state.

11. The Restatement Second of Conflict of Laws, section 52, comment b, page 180 states, in
relevant part: If the subsidiary corporation does an act, or causes effects, in the state at the
direction of the parent corporation or in the course of the parent corporation's business, the
state has judicial jurisdiction over the parent to the same extent that it would have had such
jurisdiction if the parent had itself done the act or caused the effects.

12. Opinions applying principles of alter ego and agency, including the representative
services doctrine, to determine the existence of general, rather than specific, personal
jurisdiction are distinguishable. (See, e.g., In re Automobile Antitrust Cases I & II (2005) 135
Cal.App.4th 100, 119-121, 37 Cal.Rptr.3d 258; F. Hoffman-La Roche, Ltd. v. Superior Court
(2005) 130 Cal.App.4th 782, 796-799, 30 Cal.Rptr.3d 407; DVI, Inc. v. Superior Court, supra,
104 Cal.App.4th at pp. 1093-1094, 128 Cal.Rptr.2d 683; Sonora Diamond Corp. v. Superior
Court (2000) 83 Cal.App.4th 523, 537-543, 99 Cal.Rptr.2d 824.)

13. The cited articles discuss the inexact fit between rules of law designed to establish
liability for the acts of another and an assessment of the defendant's contacts with the forum
for purposes of establishing general or specific personal jurisdiction. The articles also
discuss the efforts of some courts applying principles of alter ego and agency to reformulate
the inquiry so to address the appropriate jurisdictional question.

14. Vons, supra, 14 Cal.4th 434, 58 Cal.Rptr.2d 899, 926 P.2d 1085, rejected reliance on
tort law causation doctrines to determine whether a controversy is sufficiently related to the
defendant's forum contacts so as to justify the exercise of specific personal jurisdiction. Vons
stated, one must question the utility of importing a causation test from tort law to measure a
matter that is fundamentally one of relationship and fairness rather than causation. (Id. at
p. 475, 58 Cal.Rptr.2d 899, 926 P.2d 1085.) Similarly here, we question the utility of relying
on principles of vicarious liability to measure a matter that is fundamentally one of
relationship and fairness rather than vicarious liability.

15. Petitioners attempt to distinguish between the trust company individually and the
trust company as trustee, and argue that the trust company as trustee had no contacts
with California. The trust company is a single defendant and either is subject to personal
jurisdiction or is not. A defendant is subject to specific personal jurisdiction in California if
the defendant purposefully availed itself of forum benefits, the controversy is related to or
arises out of the defendant's forum contacts, and the exercise of jurisdiction would be fair and
reasonable, as we have stated. The fact that the trust company was appointed as trustee of
the investment trusts after Davies and Connolly visited California in March 2000 is irrelevant
if the trust company purposefully directed its activities at this state, as we conclude, and if the
other two requirements for the exercise of specific personal jurisdiction are satisfied.

CROSKEY, Acting P.J.

We Concur: KITCHING and ALDRICH, JJ.

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