Author: gavin

Appleby's team is too small to catch big fish

In last week’s Irish Times, Colm Keena argued that the Office of the Director of Corporate Enforcement (ODCE) is being starved of resources, and has been effectively reduced to something that is far removed from the strong language of it’s title.

The most striking aspect of all of this is how long it has taken for any cases to come to court in relation to the Ansbacher scandal, and how relatively minor are the (civil) punishments at issue.

The point applies to the NIB and DIRT scandals as much as to the Ansbacher one. No-one ever goes to jail for corporate offences in Ireland.

Perhaps all criminals giving advice to children intent on following in their footsteps should say; first get a degree.

Contrast the situation here with the US, where WorldCom’s Bernard Ebbers is in jail and the Enron trial is currently under way. In the US millionaires sometimes walk out of court in chains.

The point is made in a general way and is not meant to imply anything concerning Mr Collery or Mr McCann.

It may be a cultural thing, but a greater factor is no doubt one of scale. New York State Attorney General Elliot Spritzer probably has 10 times or more lawyers than Paul Appleby has staff. Mr Appleby’s office has some 37 to 40 employees and an annual budget of €4 million. He sought 20 more staff a year ago but has not yet been granted this by the Government.

He concludes:

After he’s paid his staff and dealt with the ordinary cases that flow into his office, how much discretionary spending does he have? Probably very little. Already his office, though getting through increasing amounts of work, is nevertheless seeing an increasing backlog of cases to be dealt with.

In such a scenario there is a danger that the only ones who will be held to account in terms of corporate law, will be smaller and middle-range individuals and businesses. The ODCE may simply not be equipped with the expertise and resources necessary to take on a multimillionaire or billionaire entrepreneur, not to mention an Irish or foreign multinational with Irish registered companies. And then there is the issue of IFSC or financial services companies generally, with billions swishing back and forth between Ireland, the Cayman Islands and God knows where else.

The combination of huge incentives and scant likelihood of being brought to book is a dangerous cocktail.

The docile Irish

On the 7th February last, I published an email written by Irish actor Brendan Gleeson describing the horrific conditions his parents had to endure in an Irish hospital. On last Friday’s Late Late Show he again spoke about the matter and because it was live, it was possible to see and feel his deep anger and hurt. Here’s what he had to say;

‘There are people here whose parents are going to die in disgusting circumstances. The only reason people aren’t burning the offices of the health board is because the staff are keeping the people, in as much as they can, in some sort of human situation, but this is absolutely disgusting. John O’Shea of GOAL should come into Ireland and we’ll give him some charity money and let him sort out what we are doing to our old people.

Now I’d like to ask, if they don’t sort this thing in three to six months, anybody who votes for this crowd to get back in next time, might as well shoot themselves. I’ll be honest with you; I don’t think much of the other crowd either. There’s no point in being negative and funny about it, this is really really upsetting.

Do you know what it’s like if your going to vote for this crowd at the moment, this is the way I feel about it – That if somebody came in and started punching your mother and father around the room and you went up and patted them on the back and said “sure I know you must be upset’. It is disgusting that we are allowing people to die when we have billions, a baboon could sort this bloody thing out.

The professor Drumm’s and the Mary Harney’s and all this shower and…you know what’s on the oncology department wall – Michael Martin’s name on a plaque, an oncology department where my mother in law was dying, where they were people on chairs with grieving people, there were people trying to fight for life and cling on to hope beside people who were dead – and this moron’s name is on a plaque, when he screwed the place from the time he went in to the time he left – what the bloody hell is going on?

You can watch the whole clip here.

At the end of my post last February, I asked the question – ‘Why are the Irish people so docile and politically ignorant? I would like to rephrase that. The Irish people are docile because they are politically ignorant.

It is only when an individual or political party emerges that can educate the Irish people in how to get angry that we will begin to see an end to the corruption, incompetence and arrogance that has blighted our country for decades.

Crime does pay – If your collar is white

In today’s Irish Times, Arthur Beesley further analyses the Galway oil cartel case that saw JP Lambe, a major criminal, get away with a mere six months suspended sentence and a €15,000 fine.

Lambe was described as “the enforcer’ in this operation where those distributors who wanted to stay honest were bullied and intimidated into towing the line. It is also reported that cartels might be costing Irish consumers as much as €635 million per year.

Let’s compare this case of organised crime to another recent case.

Cara Canavan (33), the mother of two small children was sentenced to two years in prison for stealing €146,000 from the HSE. In her defence, Mrs. Canavan claimed that she is a suicidal manic depressive.

The judge was clear in his reasoning for handing down such a harsh sentence.

‘A sentence had to act as a deterrent not just for the accused person but for others who might commit a similar crime.”

In my opinion the discrepancy between the two sentences can be, at least partly, explained by the colour of their collars. Mrs Canavan is a blue collar worker. When someone from this section of the community commits a crime they must be severely punished as a deterrent – ‘for others who might commit a similar crime”. It goes without saying, of course, that those without collars at all are in need of the most severe deterrents.

Mr Lambe, on the other hand, is a white collar criminal. In some circles, even the use of the word “criminal’ is a bit harsh for these people. Indeed, to my knowledge, the police don’t even include white collar crime in annual reports.

Bank officials who rob millions from their customers, Ansbacher account holders, major tax evaders, cartel enforcers, politicians who receive large amounts of “forgotten’ money and so on.

These people are not “really’ criminals. They’re upstanding members of the community, “robust’ businessmen, committed politicians, whose “good to the community/economy/State, far outweighs any “minor’ infringements of the law.

Crime does pay

In 2001, JP Lambe was asked by a group of people to act as the principal organiser of a multi-million Euro robbery.

Lambe is not a man struggling to exist on the fringes of society. He is a retired businessman, a respected member of his community, a leading figure in the local GAA. He owns his own house, has a good pension and a nice little nest egg of €250,000 in the bank.

Lambe claims (and apparently some very intelligent people are prepared to believe him) that he did not benefit from the robbery of approximately €4.4 million from the people of Galway.

He was apparently just helping out friends when he agreed to organise the illegal price fixing of gas, oil and kerosene. (Oh, and did you hear that the Pope is thinking of converting to Islam?)

Lambe was not shy about achieving his mission. Most of the fuel distributors were happy to cooperate in this robbery but a few refused. Lambe worked hard in his attempts to “induce’ these honest operators to partake in his criminal activity.

Neither was the presiding judge, Katherine Delahunt, in any doubt about the central role played by Lambe in this major crime.

“Without his talent, acumen and knowledge, this kind of distortion could probably not have functioned at any significant level”.

So, major criminal activity involving the theft of millions and the judge is convinced that without Lambe the operation would not have been effective – What was the sentence? Six-months suspended and a €15,000 fine. In other words, this criminal got off.

The message is clear. If you are operating or thinking of organizing a cartel to rob millions from the public – go ahead, the chances of getting caught are tiny. And even if you are caught, it’s likely you will just receive a slap on the wrist.

Killarney councillors vote for rezoning

Kerry, the home of councils over-ruling the decisions of planners, has yet again shown just how little say planners have. Prima facia this rezoning warrants some investigation. Emphasis is added in all cases.

Killarney Town Council has voted to rezone 20 acres around the Gleneagle Hotel for town-centre development against the advice of planners.

Fianna Fail councillor Patrick O’Donoghue, who is also managing director of the Gleneagle Hotel Group, which he owns with his family, confirmed after the meeting that he had lobbied support for the motion. Cllr O’Donoghue is also a director of Failte Ireland.

Yes, it is funny isn’t it. It’s not just Fianna Fail though.

Fine Gael councillor Sheila Casey, who voted for the rezoning and was one of the proposers of the motion, is an employee of the Gleneagle Group.

Yesterday Ms Casey said the idea of any conflict of interest had not occurred to her.

And what are the planners saying about all this?

The town planner and town clerk told the meeting they had no objection to the proposed regularisation of the site for tourism-related facilities, which they felt was “an appropriate designation”.

But they pleaded with councillors not to dilute the core objective of current town plans and that the proposal would effectively attach a town-centre zoning to the site.

“The executive are strongly opposed to the application of associated town-centre facilities to the proposed rezoning as it will effectively attach a town-centre zoning to the site,” executive planner Fiona O’Sullivan said.

Ms O’Sullivan outlined up to 20 uses permitted by a tourism facilities designation including a museum, neighbourhood retail, outdoor and indoor leisure and conference facilities as a more appropriate zoning.

Under town-centre zoning, retail apartments, offices, residential and financial institutions as well as high-density housing and a complete mix of uses would be allowed, she added.

Fianna Fa¡il councillor Brian O’Leary, supporting the town-centre zoning for the hotel, said the large land bank belonged to people well known for developing tourism in Killarney.

Does anyone think it odd that a man who will materially benefit from a rezoning is voting on that rezoning, and that the rezoning is against the advice of the town planner? Can anyone see a conflict of interest there?

And this is, as far as I can tell, happening all over the country. Maybe we will read about in a Tribunal in 20 years time.

Developers gave councillor £9,000

The Irish Times reports from the Mahon Tribunal:

Developers gave a former Democratic Left county councillor £9,000 for charity after South Dublin County Council gave them the go-ahead to build extra houses on rezoned land, the tribunal has heard.

Tallaght councillor Michael Billane voted in February 1996 to increase from 360 to 600 the number of houses Ballycullen Farms could build on their land. The change, a material contravention of the local plan requiring a 75 per cent majority of councillors, added £2.1 million to the value of their south Dublin land.

It continues:

Judge Mary Faherty said Mr Billane had voted against building 360 houses on the land in 1993 and then, more than two years later, he had voted in favour of 600 houses. She asked what had prompted his “quantum leap”.

Mr Billane said the original proposal would see millionaire’s houses built on the land, while the increase in density would provide more affordable housing and more employment for building workers.

A ‘quantum leap’ about sums it up.

Kitt forgot to inform tribunal of over £3,000 in donations

More amnesia at the Mahon Tribunal.

Government chief whip Tom Kitt forgot to tell the tribunal about more than £3,000 in donations from landowner Christopher Jones, it emerged yesterday.

Mr Kitt, who is still trying to establish with his bank how much he got from Mr Jones, yesterday admitted his initial response to tribunal inquiries wasn’t as comprehensive as it should have been.

Last month, he wrote to the tribunal acknowledging he got a £500 donation from Mr Jones in 1991, according to senior counsel for the tribunal Patricia Dillon. He also said he received £800from an employee of Mr Jones, Frank Brooks, at a golf classic last year.

But Ms Dillon said this did not represent all the payments Mr Kitt received from Mr Jones. The tribunal had sent him financial records, including copies of cheques, for three other payments, for £2,000 in 1992, £500 in 1992 and €650 in 2002.

Mr Kitt had then replied saying he had no specific recollection of these cheques.

Due to pressure of work, his response to the tribunal letter hadn’t been as comprehensive as it ought to have been, he said.

He was on the radio yesterday too:

He blamed the omission on poor records that he kept at the time. He said he was “annoyed” that he had not been able to recall the donation, but was happy to clarify the situation at the tribunal yesterday.

Confidential police files – only friends need apply

It was reported in last Saturday’s Daily Irish Mail that there is no record in Department of Justice files of any written or verbal request from Irish Independent journalist Sam Smyth requesting information on Frank Connolly’s alleged false passport application.

Both Sam Smyth and Justice Minister Michael McDowell have stated that an official request was made for the information. Former Minister for Justice, John O’Donoghue was asked about the matter on last night’s The Week in Politics programme.

O’Donoghue was asked why the Department of Justice was refusing an FOI request from TG4 reporter Tomas O Mainnin to release the alleged photograph of Frank Connolly that formed part of the bogus passport application form.

O’Donoghue’s answer was unequivocal:

‘There is no such thing as Freedom of Information where Garda files are concerned”

Readers will remember that this is the picture that Sam Smyth said was so indistinct that he couldn’t swear that it was a photograph of Frank Connolly. The photograph and the file that accompanied it are the basis for McDowell’s claim that the authority of the State was being undermined and justified his actions that led to the destruction of the good name of an innocent citizen.

But how does O’Donoghue’s statement square with the facts of the case which are:

1 – McDowell handed over a confidential Garda file to a journalist who is also a close personal friend.
2 – The handing over of the file resulted in the destruction of the good name of an innocent citizen/journalist and the cutting off of funds to an organisation investigating corruption in Irish public life.
3 – Both men claim that the file was handed over only after an official request. It now seems that there is no record of any such request.
4 – McDowell has stated that the file was given to Smyth simply because he was the only journalist to ask for it but now the Department of Justice is refusing to hand over just the photograph from the file to a TG4 journalist.

And former Minister for Justice O’Donoghue says that this refusal is right and proper on security grounds?

Corruption in a state Vs A corrupt state

“The truth is I broke the law, concealed my conduct, and disgraced my office. I know that I will forfeit my freedom, my reputation, my worldly possessions, most importantly, the trust of my friends and family.”

These are the words of Randy “Duke” Cunningham, former US Congressman and Vietnam War pilot Today he was sentenced to eight years in jail for tax evasion and receiving kickbacks from a variety of un-named sources in the form of cheques, gifts of antiques and free holidays.

Cunningham was a member of the political party that rules America, the most powerful country in the world, he is a decorated Vietnam War hero, at 64 years of age he is an elderly man and yet, less than three years after he came under investigation, he is in jail. He wasn’t even allowed visit his 91 year old mother before they clamped him in irons.
Here’s what the judge had to say:

‘You weren’t wet. You weren’t cold. You weren’t hungry and yet you did these things, I think what you’ve done is you’ve undermined the opportunity that honest politicians have to do a good job.”

Meanwhile, here in the corrupt Republic of Ireland we also have a politician that broke the law, concealed his conduct and disgraced his office – Charles Haughey. However, because Haughey lives in a corrupt state, he has no worries about jail. He lives in happy retirement in a luxurious mansion feted by friends and supporters.

During his career, Haughey received massive “funding’ from known and unknown businessmen, he also received substantial financial support from Allied Irish Banks, the most corrupt bank in Ireland (Neither the bank nor Haughey have ever been made to account for their corruption). He robbed millions through tax evasion, he robbed substantial sums of taxpayer’s money from the Party Leaders Fund and he lied under oath (Perjury) at the McCracken Tribunal.

Unlike Congressman Cunningham, Haughey will not have to forfeit his freedom or his worldly possessions and there is a strong campaign to rescue his reputation. This campaign obviously has the support of our Prime Minister, Bertie Ahern, who recently stated that Haughey, was a “wonderful man’ who did his country proud.

The difference between the treatment of Cunningham and Haughey represents the difference between a state that suffers from corruption but uses the law to control the disease and a country that is a corrupt entity in itself and therefore has little interest in bringing the corrupt to justice.

The magic world of 'Policyland'

During a debate in the Dail yesterday on the brutal Neary scandal Mary Harney performed the ultimate Pontius Pilot act.

‘The Health Service Executive (HSE) now has responsibility for operational matters. However, I am more than willing to answer policy questions’

Policy?? Well, policy is like discussing metaphysics. Any one tiny point can be endlessly discussed. After hours of such productive waffle, everybody packs up and goes home for lunch, no harm done. No responsibility, no decisions, no worries.

‘What did you do at work today Mommy?’ I discussed policy honey and that’s what I’ll be doing tomorrow and every other day of my very “rewarding’ life.

What’s policy Mommy? It’s a magical world, honey, where special humans can enjoy lots of money, power and privilege without having to face and deal with the horrible things that happen to real people in the real world.

Operational matters?? Matters like the brutal mutilation of dozens of women, billions lost through corruption and incompetence, the theft of millions from the elderly over a 27 year period, the taking of children’s organs without permission, the suffering of thousands forced to lie on trolley’s or fight for chairs while they wait endlessly for treatment. These are just some of the “operational matters’ that the HSE are thought capable of dealing with while Mary waffles on about policy.

Here’s an example of capability within the HSE. Recently, they were asked the most basic question any organisation can be asked – How many people do you employ?

Answer,

‘We don’t know and we believe it will be years before we can figure out the exact number’

Enough said.