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NAMA to go after homes of wealthy developers. (Cowen and Lenihan reject plea to spare family houses).

Cowen ignored lobbying by CIF for builders.

It’s right to seize developer homes

The above three, tough talking, headlines from yesterday’s Irish Independent give the impression that the Government are going all out to deal with those nasty property developers, that the wealthy are not being let off the hook at the expense of the hard pressed taxpayer.

And that, of course, is exactly the purpose of the propaganda which, as always, is gratefully lapped up by naïve journalists.

Government ‘sources’ feed journalists the story that NAMA will move to seize the personal assets and houses of property developers in the best interests of the taxpayer.

The tough talking, no nonsense sheriff, Brian Lenihan, even included a provision in the NAMA Act to pursue developers who transferred their assets to their wives or children in an attempt to avoid paying their debts.

Alas, it’s nothing but the usual waffle designed to fool long suffering taxpayers (and journalists) as the following quote demonstrates.

However, the NAMA Act does state that nothing in its provisions will interfere with the 1976 Family Home Protection Act, which prohibits the sale, mortgage or remortgage of a family home in Ireland without the express consent of both spouses.

That may make it harder for NAMA to take away family homes from property developers with large debts.

Halleluiah, praise the lord, wonder of wonders, we have – yet again – turned a corner.

I say ‘a’ corner because I’m not sure whether Brian Cowen’s corner is the same as Brian Lenihan’s or indeed the same as the many other corners we constantly seem to be turning.

I’m not an economist, just an angry observer so the following ramble may be a complete misinterpretation of what’s going on.

We have just handed over another two billion to Anglo Irish Bank. The handing over of this money to this bankrupt bank is, quite literally, no different from throwing it into a furnace.

This money immediately becomes part of the national debt so, for many decades to come, Irish citizens will be paying back every cent in successive budgets.

And remember, the Government is standing by with at least another 8 billion to throw into Sean Fitzpatrick’s furnace.

With hardly a murmur of comment the guts of a billion was spent last week to recapitalise (nationalise) EBS.

The cost of just these two events completely wipes out the savings planned in the next budget. The Government is scrapping the bottom of the barrel looking for ways to squeeze more and more out of taxpayers who have little left to give.

The gap between what the state spends and what it takes in is over 18 billion and increasing by about a billion every month. For me, the figures just do not add up.

The Government is getting great praise from abroad for its slash and burn policies and politicians and naive commentators are lapping it up but how much more can the Irish people take?

I believe that if Irish citizens continue to allow themselves be stripped of everything they own they will be reduced to a quality of life similar to that of the 1940/50s.

Even that would be a manageable situation if the country was led by honest, courageous and visionary politicians. But the political system is corrupt and rudderless, there’s billions owed on personal loans and credit cards and at least 70 billion owed as a result of the bank bailout.

It seems to me that for this government’s polices to work Irish citizens will have to accept living in absolute, grinding poverty for generations to come – how likely is that?

I don’t believe we’re turning corners, it’s more like we’re going around in a circle and that circle is sinking rapidly.

But then again I could have slipped into a parallel universe two years ago and am now living under the delusion that catastrophe is staring us in the face.

Hopefully my escape from this delusional world is – just around the corner.

The Director of Corporate Enforcement, Paul Appleby, is still desperately trying to convince anyone willing to listen that his office served the public interest in the DCC/Flavin fraud case.

The point of a High Court inspection is to get to the bottom of things. That was achieved with the inspectors’ report.

He essentially concluded that there was no deliberate wish to evade the law.

We obviously accept that. We felt, and still feel, that we discharged a valuable public-interest role in uncovering many of the events and issues.

The Supreme Court had already found that DCC had engaged in serious fraud but this finding was essentially dismissed by a mere High Court inspector who effectively apologised to Flavin and DCC for any inconvenience caused.

Appleby also pointed out that the High Court inspector found that DCC had made a ‘costly error’ when illegally dealing in Fyffes shares in 2000.

Isn’t it incredible that one of the most senior law enforcement officers in the state can casually state that the ‘illegal’ trading of stocks was nothing more than a costly ‘error’?

The word ‘illegal’ has two different meanings in Ireland.

When the state is using the word in relation to cases like the DCC fraud it is just a series of letters beginning with ‘i’ and ending in ‘l’, it has no other meaning and therefore no further action is necessary.

For ordinary citizens the word always means police, arrest, courts and frequently – jail.

The Director of Public Prosecutions, James Hamilton, gave a very interesting interview on The Week in politics last Sunday.

He believes that expert juries are needed to tackle the rise in white-collar crime. He also spoke about the difficulties posed by the absence of a whistleblower’s charter.

The following are some of the answers he gave during the interview followed by my comments.

Why have you chosen this time to outline your views on white collar crime?

I think the whole question of financial regulation has become a very topical one and we’re obviously in an era where we’ve moved from the former idea of light regulation into a different mode. I anticipate that in the future we’re going to be seeing more files in the area of white collar crime and therefore it’s an appropriate time to look at whether or not we have the appropriate tools to do that.

The whole area of financial regulation has been topical since, at least 1979, when the criminal politician Haughey gained power and banks and other financial institutions were given a free hand to engage in criminal activity without fear of accountability.

Many countries, especially America, now regret the policy of light touch regulation and, unlike Ireland, are taking strong measures to rectify the situation.

Irish governments have always followed a policy of no regulation whatsoever, light touch regulation was and is irrelevant in the Irish ‘Wild West’ financial sector.

Practically nothing has been done to bring the financial criminals to justice and the little that has been done is nothing more than an attempt to fool the international community that Ireland is a normal, functional state.

There is no requirement for special juries, simple law enforcement will resolve the problem of white collar crime.

Why do you think a whistleblowers charter is now necessary in this country?

Essentially, a decision was made not to have whistleblower legislation back in 2007. The main reasoning behind that decision seems to have been that whistleblower legislation might cut across our system of light regulation and wasn’t appropriate given that that was the type of legislation we had at the time. I think there’s a case for looking again at that.

What? Whistleblower legislation might cut across our system of light regulation? Only a fool would put forward never mind actually believe such drivel.

The reason whistleblower legislation was rejected in 2007 and the reason it is still not even being considered is simple. If such legislation existed, the watertight protective systems set up by politicians and operated by so called regulators would fail thus exposing the criminals operating within the Irish financial sector.

Some may wonder whether our existing laws are up to the job?

Some aspects of it are quite robust. For example, in 2001, we amended our Prevention of Corruption Act and strengthened them in quite a significant way by introducing a presumption that where a payment is made to an official and that includes Ministers, TDs and Senators who makes a decision affecting a citizen that’s there’s a presumption that the money is paid corruptly.

There have been significant prosecutions under that legislation.

Significant prosecutions – who, when? I rang the DPPs office for a list and was met with the standard reply.

Oh no, Mr. Sheridan, that’s privileged information, we couldn’t possibly give that out.

When I pointed out that any such prosecutions were likely to have taken place in a public court accompanied by widespread media and public comment I was told to put my request in writing.

The letter is in the post.

Once again Senator Shane Ross is shocked by the activities of greedy bankers.

His shock on this occasion was caused by the news that greedy bankers had hatched yet another sly scheme to get around government restrictions on pay and pensions (Newstalk).

The details of this latest greedy manoeuvre are not very important. It is, after all, just the latest scam hatched by greedy bankers who know they have absolutely nothing to fear from anybody.

What’s really fascinating about these events is how so called financial experts like Shane Ross can remain completely blind to the reality of the situation.

People like Senator Ross continue to believe that there is some kind of division between politicians and bankers; that politicians and regulators are acting in the interests of ordinary citizens and the good of the country.

The Senator seems to believe all this despite overwhelming evidence to the contrary.

Since the foundation of the state no bank or bank official has ever been convicted of a crime. This is despite the fact that they have been robbing their customers and the state with impunity for decades.

It is only in very recent times and only after the total collapse of the economy that some minimum actions have been taken against these people.

Senator Ross apparently believes that the establishment of a Financial Regulator in 2003 was a genuine attempt to bring law and order to the Wild West Irish financial sector when the facts point to the complete opposite.

The Financial Regulator operates under strict secrecy laws that would be seen as extreme in the former Soviet Union.

The Senator probably thinks that such secrecy laws just accidentally appeared on the statute books, he probable thinks that politicians had absolutely nothing to do with the drawing up of these secrecy laws.

These secrecy laws have just one affect – they provide total protection for the widespread criminality within the Irish financial sector, criminality that continues unchallenged to this day.

The Senator told listeners:

People don’t seem to realise that the banks are running rings around the Government.

Wrong Senator, it is patently obvious that politicians and the regulator are willing participants in a system that defends the interests of bankers at the expense of ordinary citizens and the good of the country.

Copy to:
Financial Regulator
Senator Ross

I came across the following report (undated, but I think it’s sometime in the early 1990s) published in the then Cork Examiner concerning the Greencore scandal.

The Greencore saga lives on.

Last night in an extraordinary statement the Stock Exchange said it wanted to make it ‘clear’ that it ‘neither confirms nor denies that it is or is not investigating or monitoring dealings in any stock at any time for the purpose of identifying any possible insider dealing’.

The Cork Examiner has been given assurances that a high powered team of experts has been set up to unravel the real meaning behind the statement.

Insider dealing may have taken place in the shares of Food Industries now the subject of a £54 million bid by Greencore.

The Stock Exchange statement is indeed extraordinary, even bizarre but not unusual within the context of so called Irish financial regulation.

Even today, decades later, the Irish Stock Exchange is a completely secretive organisation accountable to nobody but itself.

See Gavin’s blog and Sunday Independent for full details on this particular scandal.

Somebody by the name of Simon Kelly wrote an article recently in the Sunday Tribune thanking Anglo Irish Bank for being there to help the Irish people in the early days of the Celtic Tiger.

According to Kelly thousands of jobs would not have been created if Anglo wasn’t there to support business and grow the economy.

In other words Kelly is saying that the countless billions needed to keep zombie Anglo alive is a fair price to pay for a few thousand jobs.

This is akin to saying – Ok, Hitler had his failings but he created thousands of jobs building the autobahns, or, the people of Haiti should be thankful for the massive death and destruction visited on their country by the earthquake because the disaster resulted in massive international aid.

Here are a few more gems of wisdom from this former developer.

It’s a national phenomenon (the financial crisis) caused by the actions of hundreds of thousands of people, each in their own way causing a boom, and now a bust.

Everybody had skin in the game so stop looking for scapegoats as a way to hide personal guilt.

So I say to Charlie Bird and the like; get off David’s lawn and get out of Sean’s front drive. They have lost everything but they still have to live. The bank failed because we all failed.

If you want to know what caused the crash and the failure of Anglo, have a look in the mirror. We all built the boom and we all caused the bust.

So there you have it, we’re all to blame for what went on in Anglo. Seanie and the others are being scapegoated just so we can all hide our personal guilt for the part we played in destroying the country.

So who is this Simon Kelly? Well, it turns out he’s none other than the son of property developer Paddy Kelly. I wrote about Kelly Snr. after listening to an interview he gave to Eamon Dunphy in November 2009.

The interview occurred before the putrefying stench from Anglo had seeped out and infected the entire nation.

Like his son, Paddy Kelly also blamed others for the financial disaster. It was the fault of the planning process; it was the fault of government policy.

Kelly openly admitted that ‘brown envelopes’ were taken to smooth out planning problems that were so tedious, they would try the patience of Job. He also admitted that he would build anywhere no matter what the consequences once he got planning permission.

When asked about Anglo he said:

Well, I think of the skill of Anglo Irish and the people involved, those people are so creative.

All the banks are in danger but you’ll find that as the weeks go on Anglo Irish are in very good shape and you’d be surprised how good the quality is of the people in there…watch Anglo and be optimistic.

We can see from this interview and the Sunday Tribune article why the Kelly’s are failed property developers but I don’t think the people of Ireland, who will be paying for the activities of the ‘creative’ people in Anglo for decades to come, will appreciate being blamed for the recklessness and greed of property developers and bankers.

Copy to:
Simon Kelly

It’s no accident that AIB raised its mortgage rates on the eve of the recapitalisation of the banks, the biggest fraud perpetrated against Irish citizens since the foundation of the state.

But it seems that AIB is not the only organisation taking advantage of this opportunity to minimise or hide the effects of bad news.

Just hours before the Irish people are to be officially screwed by the banks and the government the Financial Regulator has announced that two administrators are to be appointed to Quinn Insurance Ltd and that an investigation has commenced

into certain matters within Quinn Insurance Ltd that have very recently come to light.

I wonder would those certain matters have anything to do with the dodgy dealings that went on between Anglo Irish Bank and Quinn Insurance?

Another event that will be buried beneath the media storm surrounding the banking crisis will be a decision tomorrow by the Cabinet, based on the Farrell Grant Sparks report, on whether to initiate further investigations into the scandals involving the Dublin Docklands Development Authority.

This would be an ideal opportunity, from the government’s point of view, to quietly bury this potentially explosive matter.

Professor Niamh Brennan is obviously a highly educated woman but unfortunately a good education does not guarantee what I would call an informed intelligence.

Brennan was on the Marian Finucane Show yesterday (Sunday) commenting on a number of matters and it was clear from listening to her that she has no idea what life is like outside of her ivory tower.

On industrial action by public servants.

They should be grateful for the fantastic jobs they have and should be contributing to helping to get us out of this mess.

Clearly, Brennan is unaware that thousands of public and civil servants are living on a pittance and it is those people the Government has targeted for the biggest pay cuts.

She had nothing to say regarding senior civil servants, judges, army officers, and academics like herself who have all received special treatment when it comes to pay cuts.

On the HSE and professor Drumm’s bonus.

Professor Brennan is in agreement with some guy called Gerry Robinson who thinks that professor Drumm should be paid €2 million.

She further defended Drumm’s bonus by saying it was a contractual entitlement and related to a period well before the current public sector pay cuts.

It’s curious how this argument is valid for professor Drumm and the rest of the governing class but invalid for the great unwashed.

On the Government.

According to the professor the rest of the panel were being unfair to the government. She thinks the government is being very effective in speedily recalibrating public sector costs.

If, she continued, the French government took the same action there would be riots. Bizarrely, she suggests that our ability to talk things through, to engage in public soul searching is keeping the rioters at bay.

On the Irish Glass Bottle site scandal.

Professor Brennan is chairperson of Dublin Docklands Development Authority and clearly finds the position a little unnerving.

When asked about the Irish Glass Bottle site scandal she seemed shocked when telling listeners that it cost €412 million but was now only worth €50 million.

Apparently about a third of the remaining €360 million went to Dublin Port and the rest went to a guy called Paul Coulson, who, Brennan tells us is now a fabulously wealthy man as a result of the transaction and, not surprisingly, no longer lives in Ireland.

Dublin Docklands Authority has a curious feature on their website where they publish interesting facts about the area. Here’s the current piece.

Docklands Fact
A downtrodden Leprosy hospice was located on Misery hill, hence its name! It was believed lepers were “the unclean” and would be walked to the hospice on Misery Hill with a man tolling a bell and another carrying a 40 foot pole to keep everyone at safe distance. Today this is where we get the expression “I wouldn’t touch him with a 40 foot pole!”

Ironically, this piece is a perfect metaphor for the position of the taxpayer after the glass bottle site debacle.

All the leper taxpayers are up on Misery Hill paying for the stupidity and greed of the DDA and there’s not a businessman in the world that would touch such an incompetent body with a 40 foot pole.

On child abuse by the Catholic Church.

Brennan was ‘uncomfortable’ with the panel’s criticism of those involved in the child abuse holocaust.

Like most defenders of the Catholic Church she labours under the delusion that only a minority of priests were involved in the horror.

This suggests that she disagrees with the Murphy and Ryan reports which between them found that abuse was systematic, widespread and well planned.

They also found that church authorities went to extreme lengths to cover up the horror thus condemning hundreds, if not thousands, more innocent children to torture and rape.

It really is time professor Brennan came down from that ivory tower.

I wrote recently that, while Cement Roadstone Holdings (CRH) have been brought to account for breaking the law in a number of countries, they seem to be immune from accountability in Ireland.

The latest controversy surrounding this very powerful company involves a farmer in Kilkenny who has been trying for the last 19 years to find out what’s been contaminating his livestock (Six One News, 8th report).

The farmer, Dan Brennan, claims that the highly toxic substance cadmium is the cause and most likely comes from a neighbouring brick factory owned by CRH.

CRH strenuously deny the claim.

After years of investigation the Dept. of Agriculture published an 800 page report on the matter earlier this month and it is this report that has shocked MEPs on the EU Petitions Committee.

It seems that because cadmium levels were so high in bovine blood samples that those conducting the investigation decided that the samples must have been contaminated and therefore excluded them completely from the analysis.

The first and most obvious thing to be noted here is that this bizarre decision by Dept. of Agriculture officials appears to be of benefit to CRH, who have always claimed cadmium levels around the factory are in fact very small.

The second point to note is the damage such inexplicable but suspicious decisions do to Ireland’s already tattered reputation.

Such considerations don’t seem to matter, however, when the interests of powerful organisations are at stake as the recent Jim Flavin/DCC farce amply demonstrated.

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