Breaking the lotto bank

I went a bit mad last week and invested in a €4 lotto quick pick and won the stately sum of €5.

When I went to cash in my fortune, however, the shop assistant, with a sheepish grin, said that the lotto till didn’t have enough cash to cover my winnings.

Feck, says I, this must be the first time that the lotto bank has been broken.

The same shop assistant was on duty last night when I called in on the way home from a walk.

Sorry, she said, with a big smile, the lotto closes at 10pm, I hope you haven’t booked a holiday in the Seychelles?

We laughed but I was thinking to myself – How did she know?

Political hypocrisy has destroyed the country's reputation

Brian Cowen initially rejected an inquiry into the banking crisis because of the damage it could cause to the country’s international reputation.

On the Sunday Supplement this morning Mary Hanafin said that not having an inquiry could cause damage to the country’s international reputation.

The truth is that it is this political hypocrisy/dishonesty that has destroyed the country’s reputation.

RTE's news priorities

The legal expert deplored the event; he was quite surprised at what happened. He suggested that radical action needed to be taken.

The journalist was also surprised and agreed that further action must be taken on the issue.

The first politician said the action was wrong and indicated that action must be taken.

The second politician was shocked by the event and said that the Oireachtas was going to have to do something about this kind of behaviour.

So what was solicitor Frank Buttimer, journalist Ralph Regal, politicians Kathleen Lynch (Lab) and Dan Boyle (Greens) talking about on Today with Pat Kenny? (Friday).

Was it the disgraceful news that Frank Flavin of DCC has been allowed off scot free with an €83 million fraud on the stock market? Was it the banana republic style inquiry into the banking crisis?

No, the outrage and demands for immediate action were triggered because a picture of Wayne O’Donoghue’s (who?) girlfriend appeared in a newspaper last Sunday.

In the republic Mrs. Robinson's activities would have gone completely unnoticed

In our dysfunctional republic Jim Flavin was found by the Supreme Court to have defrauded the stock exchange of €83 million.

This ruling, by the highest court in the land, has been effectively overturned by a mere High Court inspector. The whole matter took ten years to resolve and at no point whatsoever was there police involvement.

In the functioning jurisdiction of the UK Iris Robinson is under police investigation just weeks after allegations were made that she secured a paltry £50,000 from two developers to fund her lover’s restaurant business.

In our dysfunctional republic such interaction between politicians and developers is as much a part of the culture as Guinness and the shamrock.

If an Irish policeman suggested that perhaps the police should investigate such connections he would quickly find himself under the same acute psychiatric care as that of Mrs. Robinson.

Knocking down the brick wall of Irish corruption

Even for a country as corrupt as Ireland, the events of Tuesday 19th January represent a dark day for our country.

At the very moment that Jim Flavin and DCC were being let off with an €83 million fraud on the stock market our national parliament was initiating an inquiry into the banking crisis that will, without a shadow of doubt, result in the same farcical result.

On the same day I was in Dublin with my nephew, Gavin, to attend a meeting by Transparency International (Ireland) on the subject of protecting whistleblowers in Ireland. (Gavin created and maintains this website and also writes, campaigns and helps maintain Gavin’s Blog, The Story and Kildare St.).

What struck me about the meeting was, as far as I could ascertain, not a single ordinary citizen was present. My impression was that everybody present was there because they were victims of state corruption, had a personal agenda of their own or were involved in fighting corruption.

And this is the problem. Despite all the good work of organisations like Transparency International (Ireland), journalists like Fintan O’Toole, Tom Clonan and Justine McCarthy and despite the courage of whistleblowers who risk everything in an effort to bring about change, meetings like this, I am sad to say, are really a waste of time.

The disease of corruption in Ireland has become so bad, has become so ingrained in the administration of the country that campaigns like this are, as I said to Gavin in discussion, like trying to knock down a six foot thick brick wall with a soft rubber ball.

The vast majority of Irish citizens are angry over a whole range of events but that anger is not focused, it’s not being harnessed by visionary and courageous leadership.

Coupled with this lack of leadership is the chronic political ignorance of most Irish citizens. Because of the corrupt system of clientelism most Irish people believe that power comes from the top down instead of from the people up.

They believe the system works by selling votes to the local politician in return for a favour. This is why corrupt politicians continue to be voted in time after time.

Irish voters are almost completely incapable of making the connection between voting for a corrupt politician and the damage that that decision causes to the country and the rest of its citizens.

For so long as this situation continues campaigns like that of TI will make little or no progress and have no affect whatsoever on the brick wall of Irish corruption.

That’s why those who operate within the corrupt body politic have no fear of organisations like TI, they are (justifiably) confident that they are untouchable.

There is only one solution to the problem and that is to knock down the brick wall. The political and administrative system that has destroyed this country must itself be brought down.

The first step in that process must be the destruction of the present corrupt political system and that will require immediate and radical action.

I have no idea what form that action should be nor do I have in mind a potential leadership but I have no doubt whatsoever that those of us who want change, who passionately want to root out the rot will still be attending genuine but ultimately useless meetings in twenty years time unless such radical action occurs.

Just before the meeting came to an end Fine Gael TD Leo Varadkar made a short speech before excusing himself to attend a meeting with Paul Appleby of ODCE.

The announcement made at that meeting tells us all we need to know about how rotten our democracy is and will be the subject of my next posting.

Wrong target

Transport Minister, Noel Dempsey threatened on RTE this morning that, if necessary, strong action would be taken against

a very small number of very well paid people who were threatening the jobs of hundreds of thousands of people.

Unfortunately, he wasn’t talking about politicians but the striking air traffic controllers.

A nation in pathological denial

There was a very good example of denial Irish style on Today with Pat Kenny last Friday.

A panel of commentators, Sean Mac Connell, Irish Times agricultural correspondent, Gina Quinn CEO of Dublin Chambers of Commerce and Diarmuid Mc Dermot of Ireland International were discussing the problems caused to water supplies by the recent bad weather.

The reasons for the problems were correctly identified by the panel – Failure to invest in proper infrastructure, failure to plan ahead, failure to make the best use of money during the boom years, failure to install water meters, failure to make a decision regarding water charges, failure of proper planning and so on.

Now the reason for all this failure is crystal clear for anyone willing to open their eyes and see. Ireland is a corrupt state led by a mafia type body politic where votes, power and influence are on sale to the highest bidder.

This brutal reality, however, must be ignored at all costs, some other reason must be found for our failure as a state no matter how stupid that reason. Here’s what Sean Mac Connell thinks:

Some historians will say that because we have been a rural people for so long that we may not be capable of organizing ourselves into urban societies and the more I look at our society, it’s probably true.

We don’t seem to have the capability of coping with an urban environment because we’ve had the tradition, and of course, because we’re a relatively new country.

We have no tradition of governing ourselves, it’s only 60/70 years (sic) and you can have no civic spirit then. Those two elements should never be neglected when we’re thinking about how we live.

Nobody challenged this moronic opinion before Kenny added his own.

Well there was always the notion that before we won our freedom that the British government did everything for us and there was a certain antipathy towards that government and that never really changed when we started to run our own affairs.

There’s some truth in this view but Kenny failed to follow up with the obvious question – Why are we, as a people, chronically incapable of maturing into a proper nation. Why do we constantly blame the British for our incompetence, corruption and other failures?

Diarmuid Mc Dermot added his piece:

There’s always a rebellious streak in every Irish person.

This is just another cowardly cop out. If such a rebellious streak existed in even a sizeable percentage of the Irish people then criminals like Haughey and chancers like Bertie Ahern would never have survived and prospered.

The only reason politicians, priests and bankers can abuse and exploit their own people is because the majority of citizens are politically ignorant and (still) chronically deferential to authority figures.

Remember, the panel started off by correctly identifying the reasons for our pathetic failure to deal with a spell of bad weather and, effectively, concluded that it’s not really our fault – pathological denial.

The rotting carcass of Anglo Irish Bank

The following quote is taken from a report in today’s Irish Independent.

Nevertheless, Anglo faces a tough task demonstrating that it can repay taxpayers’ money after five years, as necessitated by EU state aid rules.

If Ireland was the most efficient and best regulated country in the world with a political and business leadership of vision and courage solely focused on what was best for Ireland and its people the above plan would be a near impossibility.

As a backwater banana republic led by a mafia type body politic and a regulatory regime that facilitates widespread criminality the above plan is a complete and utter impossibility.

Over the next few years the remaining good assets of Anglo Irish Bank will be stripped clean by friends of the political system after which the rotting carcass will be left to stench up the nostrils of Irish taxpayers for generations to come.

Revenue: A failed entity

Revenue recently published its preliminary business results for year ending 31 December 2009.

There are some interesting figures in the report. For example, in 2009 there were just 6 convictions for serious tax evasion, 4 more are under consideration by the DPP and there are 78 ongoing investigations.

Special investigations last year generated a total of €114.4 million compared with €54 in 2008.

By any standards these are paltry sums but by Irish standards, where tax evasion is still widespread and still widely seen as a misdemeanor rather than a crime, they are miniscule and they tell us just one thing about the Irish Revenue service – it’s a failure.

But this failure, like the failure of the financial regulator and the Dept. of Finance, is not due to incompetence, it’s due to deliberate, well planned policy.

Tax amnesties are at the core of Revenue’s policy since the disgraceful amnesty of 1993 which, I believe, allowed a good number of serious tax evaders off the hook. As I wrote in 2007:

Ireland is the only country in the world that operates a policy of continuous amnesties for tax criminals, all other jurisdictions preferring the option of law enforcement.

In that article I wrote about Revenue’s lazy and cheap habit of sending out gentle letters to tax evaders offering them all kinds of incentives if they agreed to pay their taxes.

An Irish Independent article on the matter tells us that because of the current budget deficit of €24.6 billion Revenue is taking an aggressive stance on tax evasion (In accountable jurisdictions aggressive action is the norm when it comes to tax evasion).

So what is this ‘new’ aggressive stance by Revenue?

Well, er, they’ve sent out letters to 7,000 people who own second homes or investment properties inviting them to obey the law in relation to capital gains tax. In other words – another tax amnesty.

At the launch of every amnesty law abiding citizens are assured by politicians and officials that henceforth the full force of the law will be brought down on those who fail to pay their due taxes.

These assurances are nothing but lies and the statistics confirms this.

The report (probably due to embarrassment) has nothing to say about the number of people jailed for tax evasion so I gave Revenue a call to find out.

In 2009 just two people received jail sentences but an even more incredible and disgraceful statistic is that between 2000 and 2008 only seven people were put behind bars for tax evasion.