Government, judiciary and corruption

Section four of the Transparency International Ireland debate entitled ‘Restoring trust in Ireland Inc’ focused on possible corrupt links between the judiciary and government.

Journalist Justine McCarthy didn’t mince her words.

I think corruption of the law in this country is at the root of most of our problems.

She went on to give just a few examples of how the law ‘operates’ in Ireland including how lawyers regularly lie in court, how legal firms like Arthur Cox become involved in conflicts of interest. For example, advising the Government on NAMA while at the same time advising the banks.

There was some discussion about RTEs habit of caving in to government (legal) pressure on a whole range of issues. Host, Karen Coleman, suggested there should be an investigation into this matter.

Ms. Coleman is right but who could be trusted to conduct such an investigation into the two most powerful information (propaganda) outlets in the country – the judiciary?

Sean Fitzpatrick will never be charged

Brian Lenihan was asked on Prime Time why it was taking so long to see results from investigations into Anglo Irish Bank when the US authorities could charge, convict and send Bernie Madoff in six months.

He said he was frustrated that bankers haven’t been jailed yet, that there was a massive ongoing police investigation and he was confident that investigation would yield results.

The Minister is talking total, absolute, undiluted waffle. Let me repeat once again – nobody will be charged never mind face a jail sentence as a result of what went on at Anglo Irish Bank.

The so called ‘investigation’ is nothing more than the by now well established state strategy of delaying matters until the whole case can be quietly dropped.

The so called financial regulatory system that has long facilitated and protected the scumbags who infest the Irish banking sector is still in place.

The same attitudes, the same strategies, the same secrecy laws are still there and will be used to protect Fitzpatrick and his cronies.

Only a complete clean out of personnel and a revolutionary reform of the system will see standards come anywhere close to international norms. There is not the slightest indication that such reform is in the pipeline.

We can see that nothing has changed by simply analysing a recent report in the Sunday Independent on the Anglo Irish Bank investigation.

The many anonymous ‘sources’ quoted in the article are obviously government sources.

Sources (Garda) say they will not be in a position to make arrests and seek charges until next year at the earliest, because of the complexities of the case.

Sources say there’s a massive amount of paper and electronic documents to be examined so don’t expect any developments this side of Christmas.

So, very complex, mountains of documents to examine. The source didn’t specify which Christmas.

Gardai rejected comparisons with the Bernie Madoff case which saw him in jail after only six months. They point out that Madoff had been intermittently under investigation since the mid 1990s.

This is a pathetic attempt to convince that there’s nothing odd about Irish state and police investigations; that our standards are on a par with any country.

This is rubbish and the Madoff comparison is ridiculous. There had been a number of probes into the activities of Madoff which went nowhere but as soon as substantial evidence became available the police acted immediately and Madoff was put under immediate arrest.

There was immediate and clear evidence of wrong doing in the Anglo Irish case but instead of arrest Fitzpatrick was allowed to head off for a month on a golfing holiday in South Africa. Nearly a year later and we’re still waiting for the Gardai to bring him, or anybody, in for questioning.

The thrust of the Garda investigation is to gather sufficient proof to convince the Director of Public Prosecutions that there was “intent” on the part of Anglo Irish staff to commit offences and not, as they would argue, that there was simple incompetence.

Translation: It’s going to be extremely difficult to convince the Director of Public Prosecutions that anything illegal occurred. The DPP is answerable to nobody, his decisions cannot be questioned and he usually takes a number of years to decide in cases like this.

This is usually the point where all possibility of criminal charges is abandoned and the case is handed over to the safe house of Office of Corporate Enforcement where it will be allowed to harmlessly enter history.

With a total of only 65 investigators in the Fraud Bureau and the emphasis on the Anglo Irish investigation, sources say the bureau is under pressure to complete other high-profile fraud investigations.

They are also “completely snowed under” with credit card and other equally complex computer and internet frauds. The amount of fraud under investigation is so great that cases involving less than €200,000 have been temporarily sidelined, according to one source.

Translation: We would really love to press charges in the Anglo Irish case but unfortunately we just don’t have the resources.

A legal source told the Sunday Independent that the public’s expectation that those identified as being involved in alleged illegality in Anglo Irish should be arrested quickly was “unrealistic”.

He pointed out that fraud cases were notoriously complicated and the Gardai would only move to arrests when they had completed their case, proved intent and already had guidance from the Director of Public Prosecutions.

Translation: The public are stupid and don’t understand that fraud investigations can be very complicated. The public are asked to ignore the fact that most other jurisdictions regularly prosecute fraudsters quickly and efficiently.

There is also relatively little experience here in investigating large-scale share manipulation. The largest case involving alleged share fixing to come before the courts was that of the DCC disposal of shares in Fyffes in 2000.

In fact, there is no experience whatsoever of investigating large-scale or even small-scale share manipulation in Ireland. The Irish Stock Exchange has never in its entire history prosecuted anybody.

We don’t even know if the ISE has ever investigated anybody because, like the Financial Regulator, it operates under an iron curtain of secrecy laws.

The Office of the Director of Corporate Enforcement never prosecuted, sources say, because the case would have had no certainty of success and would have “swallowed up all their resources” and would have faced a well-financed legal defence.

Prosecutions in the Fyffes/DCC case should have been taken by the Financial Regulator, the ISE and the Gardai – they did nothing. The case was left with the ODCE because his office has virtually no powers and operates on a pathetic budget of €5.5 million.

As I’ve said before the ODCE is nothing more than a safe house for dodgy people like Flavin where their cases are practically guaranteed to gather dust for years.

Gardai say they expect that well-resourced legal defences will be mounted in any cases arising from Anglo Irish.

Again, this is a standard marker that concern for taxpayer’s money may be used as an excuse for doing nothing.

Let me state once again – Neither Sean Fitzpatrick nor any of his cronies will ever be prosecuted; they will never be sent to jail.

Copy to:
Minister for Finance
Financial Regulator
ODCE
ISE

Refusing to talk

Aer Lingus has refused to say if disgraced banker, Sean Fitzpatrick, availed of free flights on the airline (Irish Independent).

Aer Lingus has refused to give details of other directors who may have availed of the perk.

Aer Lingus has refused to give details about a Gold Circle club which allows members to relax in exclusive airport lounges while waiting for flights. (Bizarre isn’t it – An official golden circle does actually exist)

Transport Minister Noel Dempsey has refused to defend the taxpayer’s interests in Aer Lingus only managing to limply mouth that he was “sure” the perks were under review.

Fitzpatrick, who has refused to answer questions on the Anglo Irish Bank scandal, and is also refusing to make any comment on this matter contemptuously informed the nation.

I don’t talk to the media.

Incapable of self government

This letter writer says – We may not be properly capable of governing ourselves.

I have no doubt – we are totally incapable of self government. The citizens of this country would be infinitely better off if they were directly governed from Brussels.

‘Nod and wink’ culture reigns supreme

Yes, Rody Molloy, director general of FAS, should have been shown the door without any financial inducement to do so, and Ceann Comhairle John O’Donoghue should have resigned. But we are expecting far too much.

As Irish people, we should know that doing the right thing is an English public school trait, not an Irish one. Doffing the cap and brazening things out are the two most recognisable Irish virtues, immortalised by Somerville and Ross and others.

It’s a post-colonial condition; we have a landlord lurking in our psyche and we must best him whenever we can. In politics and, let there be no mistake, in the realm of culture also, the fix, the ‘nod and wink’, the ‘we’ll see you right’ philosophy reigns supreme.

When criticism looms, the turf carts are circled.

I think we should begin to accept the fact that we are not a mature country and, indeed, may not be properly capable of governing ourselves.

Like children playing grown-up games, we are far too young to really understand responsibility in the real world, though it’s great fun pretending to be in charge like the adults.

Fred Johnston
Circular Road, Galway

Denial and pretence are the only options in a corrupt state

As always there’s a great deal of anger, comment and analysis surrounding the latest episode of the Fás farce.

But we’ve seen it all before, dozens upon dozens of times. A scandal erupts involving very serious allegations of fraud and corruption.

In an accountable jurisdiction police investigate, bring charges, people go to jail – end of story.

In a corrupt state, the corrupt system moves to protect itself. Set up an endless tribunal, hand the matter over to a powerless committee of politicians, sidetrack the matter to a safe house like the Office of Corporate Enforcement or simply pay off those who have been caught and are threatening to spill the beans.

In a corrupt state it is impossible for any politician, state agency or regulatory body to act against the corrupt without exposing the corrupt system itself.

Denial and pretence are the only options until somebody has the courage to stand up and tell the truth – and then act.

Dawkins and ritual

Asked on the Late Late Show about dying and burial Richard Dawkins said ritual and ceremony was important to humans. He said it was right to give a proper send off to loved ones who had died, that it was fulfilling to do so.

At least one on his detractors will claim that this proves he’s really religious after all.

Dawkins and the Easter Bunny

Catholic fundamentalists will not be happy, not happy at all. Extremists like David Quinn, John Waters, Mary Kenny and staff at the Irish Catholic will be fuming after watching Richard Dawkins on the Late Late Show.

Here’s an edited sample of part of the interview.

Where does god fit into things?

God has little to do anymore…we don’t need god anymore to explain anything and that pretty much means we don’t need god at all.

But most people believe in god.

Yes, it’s great consolation but it doesn’t mean he’s there, there’s no evidence whatsoever.

So what’s the Vatican – Toy town?

Yes, a gigantic very expensive, very rich waste of time.

Many would disagree.

They’re misguided.

Do you see god as believable as the Easter Bunny?

Pretty much, yes. The evidence for either is equally sparse.

Personally, I prefer the comparison between god and Santa Claus. Millions of humans have an absolute belief in Santa. They believe because parents and other figures of authority go to great lengths to instill the truth of Santa.

This belief from authority is reinforced by society in general and in particular by the media. All of society conspires in this harmless and happy indoctrination and the humans who believe have no reason whatsoever to doubt such widespread ‘evidence’.

When the Santa believers reach a certain age, however, they are informed that Santa doesn’t exist, that it’s all just a bit of fun to make Christmas extra magical for the believers. As the former Santa believers join the world of reality they are invited to continue promoting the myth so that the believers can continue to enjoy that extra magic.

This temporary and happy indoctrination of children is exactly the same as the more sinister religious indoctrination that most children are forced to endure with one crucial difference – as they grow up the indoctrination continues, they’re never told the truth.

As they mature from children to vulnerable and impressionable young adults they are subjected to massive propaganda and lies from a whole range of forces – Parents, teachers, priests, the media and society in general.

To question the unquestioned myths is dangerous and almost always brings down punishment of some sort. It is only when these children become independent adults that they are permitted to express their own views.

Unfortunately, by then it is too late for many of them, the damage is done.

A dishonest and cowardly betrayal of the Irish people

Sections two and three of the public meeting held by Transparency International Ireland demonstrated the divide between those serving within our corrupt political system and those who are the victims of that system.

When Senator Dan Boyle was asked if Ireland had a corrupt political system he responded exactly like all politicians who find themselves having to defend a corrupt system.

I think it’s corrupt in how you define corruption in its widest context. I think there are more corrupt systems, I think we’re less corrupt than we used to be but there is certainly corruption out there in our system.

When asked should John O’Donoghue resign he replied in like manner.

John O’Donoghue holds a constitutional position he’s meant to be the independent chairman of the Dail Eireann of which I’m not a member and I think the questions surrounding his use of expenses are ultimately a matter for the members of that house and I have no role or influence in that.

Senator Boyle was strongly challenged by a member of the audience, a challenge that made the Senator visibly uncomfortable.

Senator Boyle’s discomfort is understandable. He’s a member of a party that has always prided itself on its integrity, transparency and accountability.

Since entering government, however, these high standards have been largely abandoned in exchange for the opportunity to see environmental policies enacted.

Green Party Leader and Minister for the Environment, John Gormley, was clear when asked about being a watchdog in government:

We never assigned ourselves that role because it’s a role which you cannot fulfill properly and do your work as well. We’re not the moral watchdog of any political party…we look after our probity and our standards…we cannot be responsible for events that took place before our entry into government.

John Gormley is wrong; all political parties have a duty to be moral watchdogs, not just of themselves, but of all other political parties and government agencies.

No functional democracy would tolerate a political party entering government to pursue its own agenda while completely ignoring other serious matters that were damaging to the good of the nation and its people.

The Greens, like the Progressive Democrats before them, have decided by their actions and words that working within and supporting a corrupt political system is acceptable in order to see their policies enacted.

In reality their actions are a disgraceful betrayal of the Irish people.

Senator Boyle’s dishonest and cowardly words are just the latest example of that betrayal.

Copy to:
The Green Party
Senator Boyle

Banks as bacteria

Scientist Harvey Rubin suggests a new financial regulatory system based on the adaptive abilities of bacteria in nature (New Scientist).

Two results in particular will resonate with the financial sector.

One predicts which bacterial genes are essential and which can be knocked out without killing the organism.

This is the bacterial version of asking “is this bank too big to fail; if I get rid of it, will the whole system crash?”

The second models how flocks of birds or schools of fish perform collective tasks without centralised coordination. It is not a big stretch to propose that financial group behaviour, like panic selling, may be analysed using these tools.

I think, under this system, Anglo Irish Bank would have been rejected as non essential.