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