Department of Finance refusal to publish report into INBS-Update-Central Bank investigation continues

[DCon]

Apparently, according to Newstalk (and Richard Curran who they interviewed today) the report is quite critical of Corporate Governance at INBS and the (alleged) Financial Regulator of the day by extension.

DoF want to keep it hidden.

Mickey Martin was on earlier and said he would be calling on Kenny and Gilmore to publish it

[PaddyJoe]

Richard Curran covered these reports in the SBP back in March 2011. The Post is behind a paywall now but there are a couple of posts by Boyracer on the pin that give a flavour of what's in them.
Note that Eamon Gilmore called for the reporst to be published as well.

The Fingleton files - Richard Curran -> http://www.sbpost.ie/news/the-fingleton ... 55085.html

Quote:
The original report found that Fingleton, who ran the society for over 30 years, was granted special powers by its board in 1981, which were reinforced twice in the 1990s.

The powers allowed Fingleton to personally set, vary or alter interest rates charged on loans and decide the fees to be charged on them. It also entitled him personally to make arrangements on loans with individual clients of the society.

The report found evidence of a litany of corporate governance failings at the society over many years, including:
• circumvention of the credit committee by Fingleton through the use of these special powers;
• evidence of loans granted before approval and the amounts lent out being different to the amount approved;
• evidence of the funds borrowed, being issued to associated companies rather than the borrowing entity;
• no formal process for extending loan terms;
• evidence of invoices for substantial sums being paid twice;
• millions paid for consultancy services to UK offshore companies linked to borrowers; and
• introduction fees being paid to developers for introducing other developers to joint venture deals

The probe also examined how, on a number of occasions, the price of development land being purchased by a society company from a developer increased substantially on the day of purchase without any obvious explanation.

Just before Fingleton retired, he is understood to have written a letter, supporting a borrower, saying that all of that borrower’s loans were on a joint-venture profit share basis and non-recourse.

This was challenged by the new management team that came in under current chief executive Gerry McGinn.

Tánaiste wants Irish Nationwide report published - Richard Curran -> http://www.sbpost.ie/news/ireland/tanai ... 55216.html

Quote:
Tánaiste Eamon Gilmore wants to see the publication of a controversial report into corporate governance failings at Irish Nationwide while the society was run by former chief executive Michael Fingleton.
Gilmore raised the issue of publication of the confidential report, compiled by Ernst & Young and solicitors McCann FitzGerald, in the Dáil last October while on the opposition benches.
A spokesman for Gilmore told The Sunday Business Post last week that the Tánaiste remained of the view that it would be desirable for the report to be published.
He added however, that the decision ‘‘would be one for the line minister (Minister for Finance), who would have to take legal advice on it’’.
‘‘This is just one of a range of legacy issues arising from the banking crisis that the government has not yet had an opportunity to consider," he said.

http://www.thepropertypin.com/viewto...?f=19&p=486607

[Holly]

...
Note that Eamon Gilmore called for the report to be published as well.

Something must have happened to change his mind.

[C. Flower]

When was this report completed ?

Any file to go to the DPP?

[PaddyJoe]

When was this report completed ?

Any file to go to the DPP?

It's with the Financial Regulator, it seems. However, the DCE has no power to follow it up:

THE OFFICE of the Director of Corporate Enforcement has no power to investigate practices at Irish Nationwide as building societies do not fall under its remit, a spokesman for the office said.

The spokesman said the office could not comment on reports around corporate governance failures at the building society under former chief executive Michael Fingleton as it did not cover entities such as the building societies.

“Because building societies are not registered as companies under the Companies Act we have no role in relation to building societies,” said the ODCE spokesman.

Details of the reports into Irish Nationwide were published in yesterday’s Sunday Business Post.

The reports by accountants Ernst Young and solicitors McCann Fitzgerald found Mr Fingleton had been granted special powers, allowing him to circumvent the credit committee which approves the society’s loans.

These powers allowed Mr Fingleton to set or alter interest rates on loans and fees to be charged.

The reports said loans were advanced before approval and that the sums advanced were different from the loans approved.

There was also no formal process for approving the extension of loan terms and they uncovered evidence that loans were given to associated companies rather than the borrowing entity.

The reports were forwarded by the new management at Irish Nationwide to the Central Bank.

http://www.irishtimes.com/newspaper/...292061647.html

[PaddyJoe]

Financial Regulator gets damning reports on Irish Nationwide
Sunday, March 13, 2011 - 10:05 AM

The Financial Regulator has received several damning reports on corporate failures at Irish Nationwide covering the time during which Michael Fingleton was at the helm.

The documents were put together by teams of accountants and solicitors, who were asked to examine specific issues raised in a seperate report given to the Regulator last year.

That document highlighted that the board gave special powers to Mr Fingleton, who ran the society for more than 30 years, in 1981.


Read more: http://www.irishexaminer.com/breakin...#ixzz1gVcR2Q1J

http://www.irishexaminer.com/breakin...de-497056.html

[C. Flower]

Without Company Law, does that perhaps mean that only the laws on fraud, theft, negligence (?) etc. apply? Unless the INBS or Fingleton was sued by an aggrieved party ?

[ang]

The reports were forwarded by the new management at Irish Nationwide to the Central Bank.

Pressure Honohan and Elderfield to release.

[C. Flower]

It's unclear from this who commissioned the reports and for what purpose.

[ang]

Michael wants it published :-

Officials say the reports are confidential and subject to legal privilege.

Read more: http://www.breakingnews.ie/ireland/m...#ixzz1gVgpcpF2

[PaddyJoe]

It's unclear from this who commissioned the reports and for what purpose.

DOF, Central Bank, FR, Lenihan?

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 75 and 78 together.

Following the State’s investment of capital into Irish Nationwide Building Society, the Board of the Society was asked to identify and address the “legacy issues” of the Society and to co-operate with, where relevant, the appropriate regulatory or other authorities. To assist them in this work, the INBS Board engaged Ernst and Young and McCann Fitzgerald, and initial reports from these organizations were provided to the INBS Board in 2010. Following additional work on this matter, a further report was presented to the Board of the Society in June 2011.

http://debates.oireachtas.ie/dail/2011/07/06/00066.asp

[C. Flower]

DOF, Central Bank, FR, Lenihan?

http://debates.oireachtas.ie/dail/2011/07/06/00066.asp

That seems clear enough. INBS were requested to prepare the report. The report belongs to INBS. They are not even obliged to give it to the Government, unless some kind of legal contract was made.

It is possible that INBS got some kind of agreement that the contents of the report were to be confidential. Or even, god forbid, some kind of protection for themselves preventing it from being used in evidence in legal action.

How gentlemanly of them all.

Michael Martin is demanding that the report be released. Firstly, the "terms and conditions" of any agreement on the report between INBS and the Government should be released.

The Department of Finance said that it has no plans to publish the work from Ernst and Young accountants and McCann Fitzgerald solicitors.

Officials say the reports are confidential and subject to legal privilege.

Read more: http://www.breakingnews.ie/ireland/m...#ixzz1gVp3K3FR

[DCon]

That seems clear enough. INBS were requested to prepare the report. The report belongs to INBS. They are not even obliged to give it to the Government, unless some kind of legal contract was made.

It is possible that INBS got some kind of agreement that the contents of the report were to be confidential. Or even, god forbid, some kind of protection for themselves preventing it from being used in evidence in legal action.

How gentlemanly of them all.

Michael Martin is demanding that the report be released. Firstly, the "terms and conditions" of any agreement on the report between INBS and the Government should be released.




Read more: http://www.breakingnews.ie/ireland/m...#ixzz1gVp3K3FR

Martin should **** until he commissions and publishes a report into FF corruption from 1960 - 2010

[C. Flower]

From your Daíl link, PaddyJoeMc.

The Deputy may also wish to note that the above process is without prejudice to any investigation or action that the Central Bank, as independent regulator of credit institutions, may take on any relevant matter and that copies of the reports referred to above have also been provided to the Central Bank.

This clarifies that the regulatory bodies are not involved in the writing of these reports and don't "own" them.

Why in the name of god has this been handed over to Shatter to deal with?

Following recent discussions with the NTMA, to whom certain of my banking functions are currently delegated, the Board of the newly merged Anglo/INBS (Irish Bank Resolution Corporation) has undertaken to advance particular items raised in the recent report to the INBS Board.

Sure, it's only small change. Why would the public want to know what went on ?

Mr Fingleton stepped down from the building society in April 2009 following the controversy arising over the payment of a €1 million bonus. Irish Nationwide has received €5.4 billion from the State to cover losses on a loan book worth €12 billion at its peak. The society is to be wound down.

http://www.irishtimes.com/newspaper/...292061647.html

Was this report requested by the Fianna Fail government ?

[C. Flower]

Conclusion: there is not and never has been a Public Enquiry or investigation into what happened at INBS, and Michael Martin knows this quite well.