Author: Anthony

NAMA: Potential for corruption

During a discussion on NAMA today on RTE news (1st report, 1st item) there was a very interesting exchange between RTEs Business Editor, David Murphy and former Bank of Ireland chief executive Mike Soden on the possibility of corruption entering into the process.

David Murphy:

In this whole process as NAMA begins to try and run these loans as they’ve been acquired it’s fairly clear that there is latitude for corruption unless there’s significant measures in there to stop it…

…if you have corrupt individuals there at the helm within NAMA or elsewhere they are in a very, very powerful position and they are going to be making significant deals with significant investors…

…So there is going to be an issue there and it’s really important they make sure that part of the legislation is watertight.

Mike Soden:

One of the things that I’ve suggested a couple of times is that everything discussed between NAMA, the Government, the bankers and the developers should be done under oath.

The consequences of that is if you commit perjury there’s an automatic jail sentence and until we get some teeth into the legislation we are not going to get the results we want.

You’re saying (assuming) – ‘Everybody will behave as good boys’, well I don’t believe it and I think we have to make sure that they do behave.

But if the NAMA officials and experts are doing the valuations what then is the big risk?

Murphy:

One of the risks is that you’re in a situation where NAMA is going to take over an awful lot of properties and obviously there’s going to be latitude for people who want to buy those sites at certain prices to try to bribe public officials…

…Obviously we’re talking about buying an enormous amount of property in what is a falling market. If that market rebounds that property could be very valuable.

Our history as a country isn’t exactly squeaky clean when it comes to corruption both at government and builder levels.

Soden’s comment about automatic jail sentences for perjury is hilarious.

We have witnessed numerous politicians, businessmen and government officials lie through their teeth under oath at tribunals and other investigations. Not a single one has ever been charged never mind actually jailed.

It is only ordinary citizens who end up in jail for perjury, politicians, property developers and bankers are obviously exempt.

Provision has been made in the legislation that makes it illegal for interested parties to lobby politicians but it is an absolute certainty, given the rampant level of corruption in Ireland. that this law will also be ignored.

The corrupting ignorance of Emmet Stagg

I watched, in deep shame and embarrassment, an elected representative of this blighted state casually relate on prime time television (10th report) how he had recently paid out €850 to buy votes. Let me quote the exact words of Labour TD Emmet Stagg.

If a club in my constituency is raising funds they will write to me and ask for a donation and I feel obliged because I’m in a competitive position with my colleagues in the constituency to pay up. Last week I paid out €850 in that category, you do that or you don’t get elected.

I’m a TD since 1987 and for about the first 15 years I was in constant debt arising from the cost of being a TD. That was a period that the tribunals are investigating now and it left politicians and public representatives very vulnerable to awards of unauthorized money if you like to put it that way and that did occur and it was very tempting because you were broke.

Mr. Stagg is part of a system so corrupt that he thinks it perfectly normal to use taxpayer’s money to buy votes.

He is part of a system so corrupt that his casual admission of vote buying goes completely un-remarked on by his political colleagues and the national media.

He is part of a system so corrupt that he thinks it perfectly normal for citizens to solicit favours from their politicians at the expense of fellow citizens.

He is part of a system so corrupt that he doesn’t even notice the ignorance of citizens who think power emanates down from politicians instead of up from the people.

The fact that Mr. Stagg seemed completely ignorant of the meaning of his words is an indication of how corrupt Irish public/political life has become.

Politicians in the most corrupt states in the world like Zimbabwe, Chad or Haiti would not be so unaware of the implications of what they were saying.

In other words, the politicians of these countries are more educated on the disease of corruption than any Irish politician.

Copy to:
Emmet Stagg

Exploiting the judiciary

Everybody knows the Carroll group of companies is stalling for time until they come under the protection of the taxpayer via NAMA. This kind of thing is quite normal in a banana republic.

What is unusual but is becoming more and more the norm is the readiness of the judiciary to risk its authority and respect by allowing greedy and ruthless people to exploit it as a vehicle of convenience to escape their responsibilities.

Still talking politely as the ship of state sinks

Transparency International Ireland held a public meeting last week under the headline ‘Restoring Trust in Ireland Inc.’

I’m going to analyse the contributions made in this debate in sections, highlighting what I perceive as the critical moments.

My comments are made from the Public Inquiry view that Ireland is an intrinsically corrupt state and that nothing will change until enough people come to accept this reality.

Discussions like this are useful, not because they are going to make a difference, they will not. The time for talk is long past, the corrupt body politic will not shift until they are faced with a radical or even a revolutionary reaction from the Irish people.

Such discussions do, however, help to highlight just how far away we are from even recognizing the seriousness of the situation never mind accepting that radical and immediate action is required.

After an introduction by John Devitt, Chief Executive of Transparency Ireland, Journalist Karen Coleman took over as moderator and introduced the panel.

Justine McCarthy (journalist)
Senator Dan Boyle (politician)
Susan O’Keeffe – (journalist and recent EU election candidate for the Labour Party)
Cobus de Swardt (Managing director of TI)

The first question to the panel was – Can politicians re-establish trust in politics.

Justine McCarthy, who spoke first, was clear and passionate in her view.

Politicians and in particular this government are incapable of re-establishing trust. They treat us with distain and contempt…as a people we are too soft…we let them away with too much…I just don’t believe them anymore.

At one point during her delivery McCarthy turned to Senator Boyle, who was sitting beside her and said; sorry Dan, and later added,

I have nothing bad to say about Dan, he’s a fellow Cork person.

This comment brought great laughter from everybody.

This was the critical moment. McCarthy simply couldn’t bring herself to criticise a politician who was sitting beside her, a politician she knew. Even if Brian Cowen was sitting beside her I believe she would still be reluctant to make strong criticism.

This is the critical difference between the Irish, a people who are politically ignorant, and a nation like France where citizens, as Ms. McCarthy pointed out, would be out on the streets by now.

Nothing will change until Irish citizens and in particular opinion makers like Ms. McCarthy begin to demonstrate real anger towards politicians.

I don’t believe that Senator Boyle is corrupt but he is a member of the corrupt Irish body politic and therefore should be treated with total contempt for bringing disaster on the nation.

Copy to:
Transparency International Ireland
Senator Boyle
Justine McCarthy

Late Late poem

Marian Egan was wondering what poem Michael Murphy quoted in his interview on the Late Late Show (1.41).

The poem is Ulysses by Alfred Lord Tennyson. This is the quote:

Though much is taken, much abides; and though
We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.

The full poem is here.

So, all in all, a great big happy (incestous) family

Senator Shane Ross writes today about the various activities of former Financial Regulator, Liam O’Reilly.

O’Reilly is a director of Irish Life & Permanent and, at the same time, chairman of the Chartered Accountancy Regulatory Body (CARP) which is investigating the €8 billion deposits exchange between Irish Life and Permanent and Anglo Irish Bank last year.

Not to worry though, a spokesman for the Institute of Chartered Accountants of Ireland, the body that oversees CARP, said that in their opinion there was no conflict of interest – Well, that’s all right then. If the ICAI is happy, we’re all happy.

Senator Ross also reminds us that O’Reilly was the Financial Regulator who failed to act against AIB overcharging in the years leading up to 2001. And as we witnessed last week AIB is still faithfully preserving that age old traditon of overcharging by Irish banks.

The Senator didn’t mention that O’Reilly is also a company director of Merrill Lynch which is under investigation for a potentially massive irregularity which may involve undisclosed losses of £284 million.

The Financial Regulator is ‘monitoring’ the situation but, as usual, is unable to make any comment because of strict secrecy laws.

And of course Merrill Lynch is also advising the Government on how to manage the financial crisis.

So, all in all, a great big happy family.

Eoghan Harris: In a reality of his own

I seldom make comment on writers like Eoghan Harris or Kevin Myers simply because they occupy a place so far from reality that it seems unfair to criticise them.

For example, here’s how Harris sums up the Cowen Late Late Show interview (Sunday Independent).

By the end, and no thanks to Tubridy, the audience grasped that behind Brian Cowen’s gruff shell is a gentle person, but one grimly determined to do his duty. And the more he reveals himself, the more we respect him.

A kind and concerned property developer

Michael O’Flynn is the latest property developer to cry all over Marian Finucane’s apron (Saturday) as he pleaded for love and understanding.

O’Flynn is not worried about himself, he’s worried about the country, about the economy and most of all he’s worried about the taxpayer.

He blames the collapse in the building sector on inexperienced chancers who came into the industry with no greater motive than to make a quick buck.

When asked about political contributions O’Flynn was heartfelt in his concern for the greater good of democracy.

I have contributed to all political parties because it’s part of our democracy that we support the political system. I see no issue in the world in saying that I have contributed to all political parties.

He denied he was paying for access.

No, absolutely not, how is our political system going to be funded? It’s not a crime to support the political system.

My heart goes out to him.