Irish/Italian accountability

The ongoing case involving the Bank of Italy’s governor, Antonio Fazio makes an interesting comparison with how things are done in the Banana Republic of Ireland.

Fazio is facing questioning by magistrates for allegedly abusing his position by favouring Italian banks over foreign banks. If Italian standards of investigation and accountability were applied in Ireland, there would be dozens if not hundreds of Irish executives and politicians in jail.

Let’s just compare the Italian case with one of the hundreds of corrupt practices uncovered in the Banana Republic in recent years.

Irish banks and other financial institutions robbed hundreds of millions from the State through a well organised fraud involving DIRT tax. The Central Bank, Dept of Finance, Revenue Commissioners and various Ministers for Finance all knew that this fraud was in operation. Indeed, Revenue actually facilitated the fraud by issuing a memo that specifically prevented its own officials from checking the banks.

When the media (the only effective regulator in Ireland) uncovered the fraud, the banks were only required to pay back a portion of the money stolen, with some interest. No police, no magistrates, no courts, no jail, no accountability.

In Italy, Fazio is merely accused of favouring an Italian bank over a foreign bank in a takeover bid. For this he could be facing a three year jail sentence. In Ireland, this kind of activity would attract praise and promotion.

But most astonishing of all for Irish citizens, used to living in a state without integrity or accountability, is to witness the Italian Economy Minister, Domenico Siniscalco, resign in protest over the scandal saying that Italy’s reputation was being damaged.

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  1. Fergus O'Rourke’s avatar

    I know it’s a bit late to be asking, but is that “memo that specifically prevented its own officials from checking the banks” available any where on the web ?

    (Don’t worry; I do know that the memeo really does – or did – exist)