A corrupt nation in denial

The Financial Times has rightly described Ireland as a banana republic in response to the Anglo Irish Bank scandal. This is part of an ever increasing realisation by the international community that the administration of Ireland is, at every level, rotten to the core.

It is only within Ireland that the reality is denied. It is only within Ireland that a large majority of people including politicians, intellectuals, journalists and business people continue to pretend that Ireland is a normal, functional democracy like any other.

The financial tsunami that’s sweeping the globe is likely to strip away all such pretence and expose us for what we really are – a corrupt nation in denial.

The reaction to the Sean Fitzpatrick scandal and the banana republic editorial in the Financial Times is typical of such denial.

Brian Lenihan, Minister for Finance:

“I don’t accept that claim (Ireland is a banana republic), for one minute; very few countries have been left unscarred by the financial fall-out from the problems initially sparked by US sub-prime lending.
“There is nothing unique in what has happened in this country — and, indeed, we haven’t had all of the failings that have been demonstrated in some overseas banks.”

(Irish Independent, Dec 23).

Actually what happens in this country is unique. No other democracy in the world allows its bankers and other financial institutions to rob customers on a regular basis.

The corrupt and rotten business and political environment in Ireland is, largely, a creation of Lenihan’s party, Fianna Fail.

Shane Ross, Independent Senator:

“It’s a pretty stunning state of affairs.”

(Today with Pat Kenny, 19th Dec).

Actually it’s not stunning at all. This kind of ‘inappropriate’ behaviour has been going on since the foundation of the State. People like Senator Ross, unfortunately, have an amazing facility for getting outraged, forgetting and then getting outraged all over again when the next scandal breaks. He seems unable to join up the dots and see the reality that the Financial Times can see at a glance.

“What has happened here is a complete collapse of financial regulation…What has the Financial Regulator been doing since he became aware of Fitzpatrick’s loan last January?”

Wrong again Senator; there never was any financial regulation to collapse in the first place. Irish governments and regulatory authorities do not regulate but rather ‘facilitate’ the activities of financial institutions.

Last October, for the first time in the history of the State, an Irish financial institution was fined and that was only because it threatened the interests of other banks.

It’s likely that since last January the so called Financial Regulator has been trying to find a way of getting Anglo Irish and Sean Fitzpatrick off the hook. If it wasn’t for the collapse of the banking system Fitzpatrick would have been allowed to continue with his ‘inappropriate’ activities.

This is exactly how a ‘regulator’ behaves in a banana republic.

Gina Quin, CEO of Dublin Chamber of Commerce:

“I think it’s worth remembering that this wasn’t an illegal practice and you know business gets done between friends all of the time because we like to work with the people that we know and like and we can trust.

And trust is a hugely important feature of Irish business moving forward in the current climate. Trust and confidence are the absolute cornerstones of us pulling ourselves out of this current situation.

…the man has fallen on his sword, his fellow director is gone as well who was involved in one of the loans and we’ve got to move on…this is one small unfortunate incident and its not helping, we’ve got to move on.”

(Today with Pat Kenny, 19th Dec).

This is one small unfortunate incident”???

To be charitable to Ms. Quin, she’s young, ambitious and obviously completely ignorant of the rotten reality at the core of Irish public life. I hope that she manages to remain in her comfortable little bubble world interacting with people she likes and trusts.

Institute of Chartered Accountants in Ireland(ICAI):

The regulatory board of the Institute of Chartered Accountants in Ireland said it’s to look at the circumstances surrounding the director loan issue. It wants to know if any of its members was involved.

Recently, this organisation established an ‘independent’ regulatory board (CARB). Clearly, the ICAI sees regulation as a bit of a joke when we learn that they appointed Dr. Liam O’Reilly as chairman of the board of CARB.

During his career as chief executive officer of the Financial Regulator Mr. O’Reilly enthusiastically enforced policies that ensured no financial institution was ever brought to account for fraud or theft. His attitude is unlikely to have changed.

No accountant will be will be made to answer for the Anglo Irish Bank scandal.

Irish Association of Investments Managers:

The Irish Association of Investments Managers said it’s disappointed at events which have led to both Mr. Fitzpatrick’s resignations and that of the bank’s chief executive officer David Drumm. The association’s members manage 250 billion worth of investments and say they expect the highest level of transparency in dealings by directors of listed companies.

This joke organisation claims to ensure best standards throughout the investment industry. Two names – Jim Flavin, Sean Fitzpatrick.

Mary Hanafin, Minister for Social and Family Affairs:

When Hanafin was asked why couldn’t the Government make such loans illegal she spluttered

“Mmm…, Obviously, all sorts of arrangement and mmm…dealings that banks make, you know, and I think the regulator, the regulatory authority rather is actually looking to see what was behind that and the whole circumstances of it.”

(Saturday View, 20th Dec).

Hanafin went on to talk about the Fitzpatrick scandal as if she was a tourist from Mars and not part of the political establishment that created and supports rogue bankers.

Prof. Ray Kinsella, Director of the Centre for Insurance Studies at the Quinn Business School, UCD:

“This crisis has brought a generation to its knees…the impact on the very fine people working in the bank…the impact on Sean Fitzpatrick himself, I know it’s an unpopular thing to say but I’m uncomfortable with judgementalism and I don’t know all the facts but the impact on the Irish economy and financial system has been devastating.”

(Saturday View, 20th Dec).

The best that can be said of the professor is that he’s a bit of a header (See here). He once suggested that the Irish media should keep quiet about banking corruption as such talk could damage our international reputation. As I say, he’s a bit of a header.

Professor Niamh Brennan, Michael Mac Cormac Professor of Management, Director of Academic Centre For Corporate Governance, UCD:

Commentating on the failure of the Financial Regulator, Patrick Neary, to act on Fitzpatrick’s dodgy activities.

“I had thought it was a member of the staff that had made the discovery and hadn’t escalated to the Financial Regulator himself. But it appears that he knew and I find it absolutely extraordinary that he would have been part of those all night discussions in the Dept. of Finance and told nobody about this finding.”

(The Sunday Supplement, 21st Dec).

Professor Brennan is shocked because she, like many others in Ireland, labours under the illusion that the Regulator actually regulates, it does not. The Regulator, the Government and the banks are all in the same camp.

“What we need in Ireland is a robust system of regulation that protects the reputation of the country as a whole and which will be good for our citizens.”

As I have said, the Regulator, Government and the banks work closely together for the good of the banks and against the interests of the country and its people. The completely one sided deal done with the banks makes this fact crystal clear.

Unlike most commentators, including politicians, who immediately and without question accepted the regulator’s opinion that nothing illegal occurred, Professor Brennan believes that Fitzpatrick could be brought to account as follows.

Breach of fiduciary duties where a director puts his own personal interest ahead of the company.

Failing to keep accounting standards by not telling the truth in his financial statements.

Moving the loan was, in Professor Brennan’s opinion, illegal.

Fitzpatrick will never be brought to account for any wrong doing.

Ulick McEvaddy, businessman:

“I’ve seen this corporate madness if you like in a media frenzy to feed off any troubles that an Irish corporation would have.”

“So these people, Sean Fitzpatrick, Bill Barrett, these guys had a different philosophy in life and they to a great extent were, with Charles Haughey, another man pilloried in the media, the architects of this Celtic Tiger.”

(Marian Finucane Show, Sun 21st Dec).

My respect for McEvaddy completely evaporated on hearing this drivel. To blame the media for Fitzpatrick’s dodgy activities is bad enough but to defend the corrupt Haughey by claiming he was a victim of a media frenzy is to expose oneself as an ignorant fool of the worst kind.

David McWilliams, Economist and author:

For some time now McWilliams has been telling all and sundry what action needs to be taken in response to the collapse of the banks. But the Government have ignored his very sensible suggestions especially his insistence that the ‘financial delinquents’ who created the mess should all be sacked.

Responding to the dodgy deal done between the Government and the bankers McWilliams uses some colourful but accurate language.

“Recapitalisation is based on the economics of Noddyland.”

“Cronyism of the highest order.”

“Sends a signal to every foreign investor that Ireland is a banana republic.”

“Stroke politics” of Congolese proportions.”

(Irish Independent).

Unfortunately, McWilliams falls down in his analysis when he concludes that Brian Lenihan must be acting under very bad advice.

McWilliams, like so many other experts and commentators, persists in assuming that the Government and the Regulator are acting in the interest of the country when it is crystal clear that they are doing no such thing.

The Government, the Regulator and the banks are all on the same side, all working to an agenda that does not include the best interests of the people of Ireland.

Pat Cox, former president of the European Parliament:

I quote Mr. Cox extensively because his views are so disturbing.

Pat Cox is a highly intelligent and vastly experienced public figure. In addition to serving as President of the European Parliament he has served as an MEP, TD and broadcaster.

It is therefore deeply disturbing to witness him in full denial mode. Effectively, Cox is saying – Nothing illegal was done, Ireland is only a minor player when it comes to financial corruption and it’s just a case of some bad judgement and lax governance.

It’s difficult to believe he’s ignorant of the fact that Ireland is the only Western democracy that protects rather than prosecutes bankers who may be corrupt.

We here at Public Inquiry could quote hundreds of cases of political, financial and government corruption in support of the Financial Times accurate conclusion that Ireland is a banana republic.

Here’s what Cox had to say on the Fitzpatrick scandal.

“You asked the question at the very beginning; what about the comments in the papers about Ireland’s reputation?

If you look at the Tsunami of toxicity and greed that we have seen from Wall Street in all of the collapses and from the City of London, Ireland, I’m not relativising here (he is) but Ireland is really not king pin in this.

So those in the Financial Times editorial board or others who would cast a stone should cast them at glass houses closer to their headquarters at home. That’s the comparative point I wish to make.

Secondly, this week, we’re not discussing for example Mr. Madoff, one of the great guru’s of Wall Street who appears somehow or another by a corrupt scheme of pyramid selling to have maintained a system that finally has collapsed possibly with a debt of $50 billion.

So again, not to relativise, (he goes on to relativise) that’s real and that’s this week and it’s not in one Irish newspaper this weekend and a missing ingredient if we want comparative analysis.

I think the issue of what happened at home is an issue that touches loads of stories this week, it’s a question about people in authority, it’s a question about judgement, it’s a question about standards, it’s a question about transparency and it runs across so many stories in our papers today.

And the question about Sean Fitzpatrick is not one about legality and illegality to do with the bank giving loans. Under Irish company law it is very clear that up to ten per cent of the net assets of a business can be under law loaned to directors. Indeed, prior to earlier this decade up to a 100% could have been loaned.

So, the law is not the issue, the issue is the quality of governance, this is someone who has been the chief executive of one of the burgeoning banking institutions of this state and subsequently since he retired in 2004 the chairman.

And in that regard hiding the loan from the shareholders of his own bank, that’s the first grievous fault before we come to the public in some general prurient or other interest that they may have in this story.

It wasn’t leveling with shareholders and I only ask the question – Why not. It wasn’t illegal as has been said so why not tell it. So, there are people in the bank who made personal judgements not only one but several that it was ok in governance terms to hide this truth from their own shareholders maybe or not from their own auditors and they did it over consecutive years and it begs the question why.

Sure, not illegal but certainly well below the standards of good judgement and good authority and confidence is one of the missing ingredients in the global banking system today and in the Irish banking system and this is another heavy weight on those whose shoulders should bear the responsibility including our regulatory system.

The cosy capitalist bit or the Irish bit that I find quite disturbing is that those who have been invited to regulate appear themselves to be asleep at the wheel and so those who are there to look out for a stakeholders interest, whoever it may be, appear to have produced a less than acceptable performance and I find it really interesting that several of the newspapers today report our finance minister Brian Lenihan as not offering directly his confidence in our regulator saying this is a matter for the board and not for him.”

(Marian Finucane Show, Sun 21st Dec).

In conclusion:

The Financial Times is correct, Ireland is a banana republic. It is a corrupt state not just because of the extent of corruption throughout every level of society but more critically because of the complete failure of state agencies, including the body politic, to take effective measures to root out the disease.

This inaction has led to the State itself becoming a corrupt entity which in turn has created an environment where politicians, businessmen and many others in privileged and powerful positions can, with supreme and justified confidence, break the law with impunity.

This is the crucial difference between Ireland and other Western democracies. When corruption is uncovered in countries like America, England and France, for example, there is an immediate and robust response from well funded, professional and independent enforcement authorities. This does not happen in Ireland.

Ireland’s reputation will continue to be damaged for so long as politicians, journalists, intellectuals, business people and the bulk of ordinary Irish citizens continue to deny the reality of the situation.

Copy to:

Brian Lenihan, Minister for Finance
Shane Ross, Independent Senator
Gina Quin, CEO of Dublin Chamber of Commerce
Institute of Chartered Accountants in Ireland (ICAI)
Irish Association of Investments Managers (IAIM)
Mary Hanafin, Fianna Fail TD and Minister for Social and Family Affairs
Professor Kinsella, UCD
Professor Niamh Brennan, UCD
Ulick McEvaddy, businessman
David McWilliams, Economist and author
Pat Cox, former President of the European Parliament
Financial Regulator

Minister Andrews and Cloyone child abuse – I don't want to know

Here’s how Minister for Children, Barry Andrews explained his part in the Cloyne child abuse scandal

Interviewer: “When did you first read this report?”

Minister: “When I received the report from the church board I simply handed it on to the HSE because that is exactly what the post Ferns scenario requires us to do, to ensure that the HSE as the child protection authority in the State investigates any concerns about child protection, that’s what I did.”

“So you didn’t read it, you passed it on.”

“That’s correct.”

“But this is part of the questioning of protocols and responses because I suppose it is a learning curve for everyone in trying to cope with the scandals but do you think that was the best way for things to be?”

“That’s the we have learned is the best way, it’s not for the Minister for Children to investigate matters, it’s not for any government minister to investigate any issue.”

“Is that not neutral to the point of detachment?”

“No, it’s not. The HSE is a state authority and it has the function of ensuring that child protection practice in the State is very good. It’s my role to ensure that the HSE are doing that job so if I get a report about child protection concerns from any authority, sporting organisation or anybody, I wouldn’t investigate, I would pass it on to the HSE who have the staff and who have the statuary function under the Child Care Act to investigate these matters.”

“Does not reading mean that you don’t know anything about it, you barely read the title on the cover and you say – I don’t want to know?”

(At this point the Minister decides not to answer the question but instead reverts to political waffle)

“What’s absolutely lost in all of this is that we had an audit already in place on the part of the HSE in relation to Cloyne, so it was an unusual set of circumstances… blah blah blah.”

It’s crystal clear from this interview that Minister Andrews does not see child protection as an important matter. He’s apparently very happy to hand over total responsibility to the HSE, a discredited, unaccountable and completely self-serving organisation, an organisation that regularly puts the lives of Irish citizens at risk.

Barry Andrews is a young politician with the likelihood of a long and prosperous career as a member of the most corrupt and irresponsible political party in Ireland. Irish citizens and in particular Irish children are likely to pay the price.

Copy to:
Barry Andrews

Failing to punish

Clifford Fenton, who lives in the beautiful Glen of Imaal in County Wicklow, allowed his land to be used for illegal dumping. Up to eight thousand tons of waste was illegally dumped there over a number of months in 2001 (RTE News, 9th report).

The waste, which originated from the Mater Public and Blackrock Clinic hospitals in Dublin, included – Blood contained in tubes, blood stained bandages, used incontinent pads, sharps such as scalpels and needles, bodily fluids and laboratory waste. There was also construction, chemical, domestic and animal carcasses.

For most sane people this is a very serious crime. It’s one of those crimes that has the potential to cause massive environmental damage not to mention the serious risk posed to people. It’s the sort of crime where a strong message needs to be sent out by judges so that others will be deterred from such reckless activity.

Unfortunately, the judge in this case would not agree. He fined Fenton a paltry €70,000 saying that he wasn’t a serious player in the scam. This is like saying somebody who supplies a murder weapon is only a minor participant.

The owner of the waste disposal company and a truck driver are awaiting sentence. What punishment can they expect from this judge– an all expenses paid FÁS holiday to Florida perhaps.

FÁS chief gives people of Ireland the two fingers

Former chairman of FÁS Brian Geoghegan doesn’t mince his words when it comes to giving two fingers to the people of Ireland (RTE News, 7th report).

The fat cat bureaucrat told the Public Accounts Committee, and by extension the people of Ireland, he was not aware that first class travel had been availed of by FÁS executives. Furthermore, he told the people who pay his massive wage that neither he nor his board were responsible for checking details of travel.

I’m surprised he deigned to talk to us at all.

Child abuse holocaust continues

The holocaust of child abuse continues in the Catholic Church. A publication by the National Board for Safeguarding Children strongly censured Bishop of Cloyne, John McGee, for “potentially exposing vulnerable children to further harm.”

Even the usually mild mannered and conservative Marian Fincuane (Saturday) was angry.

“I was listening to the Bishop on the six o’clock news where he said ‘we’re in learning mode’ – learning mode??
And I just think we should remind ourselves that Ivor Paine was first sent for treatment in 1981, the Brendan Smyth event happened in 1994, we had the revelation about the £30,000 which was paid to Andrew Madden and then we had Archbishop Connell coming out in May 1995.
Then we had Ferns, then, fortunately we had Archbishop Martin who said we’re going to get our act together here, we’re going to cooperate in every possible way with the State, we are going to be open and transparent.
But down in Cloyne they’re still in ‘learning mode’ and this is about the protection of children who can have their lives destroyed by these kinds of events happening. So, I think now that below in Cloyne it would be very useful if you got into a slightly faster learning mode.”

Matthew Ring, a priest who nine years ago courageously left the Diocese of Cloyne in disgust at how sex allegations were being dealt with by McGee, was even more to the point.

“If John McGee as bishop of Cloyne was resident in England he would be questioned by the police and all his documents would be removed from his house and there would be a thorough investigation into what went on. I think in terms of Ireland the bishops feel they’re above the law and above accountability and that’s the fundamental problem in Ireland. Until such time as a bishop is held before the courts of the land in Ireland there will be no transparency and no accountability.”

We at Public Inquiry would add to the list of those who are above the law in Ireland – Politicians, bureaucrats, bankers, solicitors, policemen – the list goes on.

The Catholic Church always puts its own interests before the vulnerable it claims to protect. This is unlikely to change given that it is now led by a man who fatefully served Hitler’s Nazi party until the very last days of the war.

The HSE, another agency that often operates outside the law, refused to give a date for the release of another report it possess concerning child abuse. No doubt it is waiting for the most opportune moment to slip it out quietly while the media is otherwise engaged.

Yet another banker caught out

Yet another banker has been caught out and forced to resign. Sean Fitzpatrick, chairman of Anglo Irish Bank, has resigned in a controversy over ‘inappropriate’ loans to directors involving sums of up to €87 million.

We don’t know yet if Fitzpatrick has done anything illegal, we can only be sure that if he has he will not be made accountable.

Writing in the Irish Times (22nd September 2005) Fitzpatrick is scathing in his criticism on over regulation and the attitude of media reporting on business matters. The article is worth reproducing in full.

Media should spare us the polemics and give us balanced business news

To maintain economic progress, we need fewer laws and a more positive attitude towards business and risk-taking, says Seán Fitzpatrick.

In order to consider now what we should be doing with the fruits of our economic success, we first need to understand what it is we have achieved over the last 15 years.

Let’s cast our minds back a number of years. Many of us will remember the mid-1970s to the mid-1980s. It’s easy, though, to forget the days of negative growth, high unemployment, high taxation, high interest rates, rampant emigration and balance of payment problems.

Ireland wasn’t exactly a great place to do business. We were conservative, flair was hardly in evidence and we lacked business confidence. The pace at which things were done was pedestrian, bureaucracy prevailed, but even worse, there was very little hope for our young and educated, who emigrated in their tens of thousands.

The last decade and a half or so has just blown that all away. It was as if, overnight, we discovered just how good we were. We were bright, well-educated, flexible, good-natured, creative and even hardworking. The Paddy stopped drinking G&Ts before the three-course, three-hour lunch and found Ballygowan, the bowl of soup and the hang sandwich.

We had ideas, and we had balls. We would put in whatever hours and whatever miles it required to take those ideas and turn them into business successes.

The brightest and the best of our school-leavers stopped automatically signing up for the professions.
Commerce faculties, business schools, and property qualifications became trendy and numerous. And all the time as we worked the scene and maximised the moment, the world watched in astonishment. That is no exaggeration.

The authorities on these matters – the economists, the Financial Times, the Wall Street Journal and others – that had initially been sceptical, eventually came to marvel at what we were doing and achieving.

The economic boom has brought some trouble in its wake. It has led to excesses that have the potential to damage the very fabric of our society. On occasions, the confidence that fuelled much of the business dynamism turned to arrogance.

We’ve all seen the cases where the smile became a sneer, and the stride a swagger.

However, what must be acknowledged is that, for all the reservations, some of which are well founded, the Celtic Tiger has been a force for good in Ireland. It has allowed us stretch ourselves and express ourselves in a manner that was unthinkable in the business culture of the recent past.

And what was it that underpinned all of this success? Some trends were crucial, in my opinion:

The profound cultural shift in how we did our business and the pro-business environment that our Government championed.

More specifically, taxation was reduced, inward investment was greatly encouraged and many incentives were used to promote business and enterprise and property development.

The general environment was positive. The men and women who took advantage and who drove the economy onwards year on year were operating in a positive environment where risk-taking was applauded and success rewarded.

In his last budget, the current Minister for Finance referred to economic success as being nothing more than a means to an end – that unless it helped to create a better society it will have been wasted.

The national debate must go to the heart of what the Minister for Finance said. Yes, we must sustain our economic performance, but we must ensure that in another 10 years no such blights exist in the Ireland of 2015. Society as a whole must have benefited to a greater extent than it has to date. And that is the responsibility of us all.

I would like to develop another theme which is also about perspective – but in a different sense.

While our economy continues to outperform most of its peers and the immediate outlook remains very positive, there has been a slowdown in the rate of growth. This means we need to be very conscious of the overall environment for business.

Two things concern me:the move towards more and more regulation; the quite hostile approach towards business by elements in the media.

Maybe it is the start of old age kicking in. Maybe it represents the defensive instincts of a banking sector that feels a little bit hunted at the moment. But maybe, just maybe, the concern is genuinely motivated by a belief that the pronounced moves towards greater control and regulation could squeeze the life out of an economy that has thrived on intuition, imagination and a spirit of adventure.

There are those who appear to want to establish Ireland as the perfect model in corporate policing and regulation. For these people, regulation is paramount.

They want us to go further than a territory such as the US, where the scale of impropriety in business has been truly shocking. We’re moving towards regulatory and compliance barriers that are significantly more stringent than two of our most important trading partners.

But why? What has been done here over the past decade that demands such a reaction? Where is the line-up of failed companies with shareholders who’ve been ripped-off and left bemoaning the lack of due care and attention by feckless directors?

It is true that we’ve had some difficulties. My own industry of banking had the issue of Dirt to deal with and, as an industry, our actions were clearly wrong in the past. We failed to deal with the issues appropriately; we were wrong, and we have paid the price for our misjudgment.

However, what’s important in this context is that the issue of Dirt was capable of being dealt with under existing legislation and under existing procedures. We did not need any new powers.

Overall, we have done very well by Ireland and the Irish economy over the past 15 years. We can be proud of it and we can confidently state our case: we do not need more legislation. What we really need is fewer laws, but which are better and more stringently enforced.

The media has a huge influence in Ireland, and overall, I believe it has taken quite a negative view of Irish business. It remains the case that many in the business press seem always to focus on the negative.

Issues of compliance or general corporate conduct get coverage that is disproportionate to their importance, or the frequency with which they would arise.

This is important because business coverage influences the general public mood. It is a source of information for those from outside who are considering Ireland as a place to do business. It is absolutely correct that where serious wrong-doing has been uncovered it should be exposed.

This must be part of the function of an independent press. (The lack of it has been one of the long-running criticisms of the property media in Ireland and I don’t believe it has served the property sector well.)

So, it’s a question of balance. There are things that should be ventilated more, but what I see from where I am sitting, is a general acceptance by most of the media that business is dodgy or suspect and it needs to be highly regulated.

This theme is there in much of what I read and it needs to be challenged, because it undermines the fundamental that underpins economic growth.

And then there is the occasional descent into farce. RTÉ, which in fairness brings us morning and evening business coverage that is focused on just that – business – recently gave a platform to one of the thousands of financial advisers who trade in Ireland and allowed him sound off on the ills of our economy.

RTÉ chose to give a TV soapbox to Eddie Hobbs, someone who – completely unchecked – was allowed to go on a rant about our economy that targeted almost every stakeholder in that economic success that I referred to earlier. Why?

Everyone knows there have been overruns in infrastructural budgets. We all know that the taxation cocktail hits us particularly hard on certain goods and services and so on,but why, oh why, give this man four weeks of prime time television?

This is not good. I’d genuinely worry that much of the nonsense he peddled would gain common currency and that the wholly unbalanced Hobbsian perspective on Ireland of 2005 would fuel the anger of many of those who have failed to benefit from our economic success thus far.

This could also support a political agenda that is far removed from any of our long-established political parties.Were that to happen RTÉ should be held accountable, as the media generally must be, for the significant influence it has on the economic environment. This whole area needs attention.

To conclude, let me return to the need for us to make sure that we sustain the economic success of the past 15 years, but that in doing so we turn even more attention on the creation of a better and more equitable society in its wake.

That is the job of us all, and the media should prompt and prod us all – politicians, business people, the social partners – to ensure that this happens. Just spare us the polemics and the hyperbole and give us some balance.

Seán Fitzpatrick is chairman of Anglo Irish Bank. This is an edited version of his speech at The Irish Times Property Advertising Awards

© The Irish Times

Defending a failed state

After reading a report that the principal witness in the ongoing FAS scandal, Greg Craig, had refused a third ‘invitation’ to appear before the Dail Public Accounts Committee I rang PAC and spoke to a senior civil servant.

“The PAC has compellability powers, why doesn’t PAC compel Craig to give evidence?”

“PAC can get compellability powers but it’s quite difficult to get them, it takes a long time to get compellability powers.”

“It was vital for our examination that he comes in; we have enough information of what went on in FAS at the moment. Mr. Craig had an opportunity to put his side of the story because he was mentioned, as is his right, because there are allegations of wrongdoing. If he chooses not to do that then we’ll have to go ahead on the basis of what the findings are so far through the Comptroller and Auditor General.”

“I’m not interested in Mr. Craig’s difficulties; I want to know what happened to my money.”

“We know what happened from the C & AGs report and at the end of the day we want the C & AG to go back and conduct a more thorough investigation of FAS which he’s doing in January and we can’t be seen to be holding up that so we gave him the invitation.

It’s up to him if he wants to take it up, if he doesn’t we’ll just go ahead with the findings and the evidence we’ve taken so far. We know what went on, we know exactly what went on, we’ve got huge amounts of material from FAS and they have admitted what went on there in terms of what was wrong.”

“What power does the PAC have in regard to referring these matters to the Guards or the Fraud Squad?”

“That will be something we’ll look at; some of these matters have been referred to the Guards already.”

“I’m asking what powers PAC has at the moment.”

“We can make recommendations to the Minister for Finance and it goes back to the department of Enterprise as to what should happen but it’s not specified in our powers. All we can do is refer things to whoever is the regulatory authority.”

“What power does the C & AG have to refer these matters to the Guards?”

“The C & AG is an auditor but if he comes across something that’s criminal in nature he has to report it to the Gardai.”

“So, the PAC has no power, the C & AG has no power.”

“Well, I didn’t say they have no power.”

At this point the civil servant got angry with my questioning and proceeded to give me a dressing down.

I listened politely and responded by informing him that I was not ringing him on a whim but rather as a very angry citizen looking for answers.

I repeated my assertion that the PAC and C & AG have no powers apart from referral and recommendations.

“Yes, that would be correct.”

“Have any recommendations made by the PAC ever being referred to or acted upon by the Guards?”

“I don’t know, I couldn’t say. The PAC has been examining government bodies since 1924.”

“Do you find it odd that the C & AG has already investigated FAS and made a report?”

“He has looked at a report they’ve already made (FAS?) but this needs to be done in forensic detail??

“Could I outline the broad sequence of what has happened to date?”

“An anonymous letter was sent to Mary Harney which triggered an internal investigation in FAS which triggered an investigation by the C & AG which triggered an investigation by the PAC and when the PAC completes its investigation in January it will refer back to the C & AG who will conduct yet another investigation (This is where I get facetious) who will refer back to FAS who will refer back to Mary Harney who will refer back to the anonymous letter writer thus completing the circle of madness.”

The civil servant confirmed my sequence was correct up to the point where I became facetious.

I thanked him and told him he was doing a great job in defending a failed state.