Author: gavin

Legal actions, dodgy dealings and resignations

2005 ends on a note of high irony. AIB, the most corrupt bank in Ireland, is taking a 500 million dollar action against Bank of America and Citibank resulting from the 691 million dollar trading fraud at its former US subsidiary, Allfirst, in 2002.

Among other things, AIB is complaining of “unjust enrichment’. This, from a bank that has itself, raked in millions from a whole series of “unjust enrichment’ scams.

The Fyffes insider trading case has shone a light on some very dodgy activities in the murky world of the Irish financial sector. For example, it seems that Mr. Tom Healy, CEO of the Irish Stock Exchange was passing information to a Mr. Flavin, a man who the ISE had reported to the Director of Public Prosecutions as a suspect in insider trading.

The first reaction, as always, is denial.

‘I would be happy to see the whole issue go away”

, Mr. Healy is quoted as saying when things started to get a bit hot for him.
We are at the second phase now – Silence. ISE is refusing to make any comment on the matter.

All those involved will be hoping that by January, the whole thing will be forgotten about, and they are probably right. But, sooner rather than later, we will hear about the ISE again – why?

Because there are an awful lot of very greedy/ruthless people out there and the ISE is just one of the many so-called Irish regulatory bodies that are incapable of doing their jobs effectively.

I see poor old Antonio Fazio; governor of Bank of Italy has finally resigned. And what great crime did this man commit? He allegedly favoured an Italian bank in a takeover bid and may have dabbled in some insider trading.

In Ireland he would have been promoted and be first in line for entrepreneur of the year.

HAPPY CHRISTMAS AND A PEACEFUL NEW YEAR TO ALL

Two laws

After every horror involving child abusing priests (and there has been many) there is much wringing of hands and promises from the State and Church about accountability and bringing in laws to protect children.

When public anger subsides, however, the church and State usually revert to form – putting the interests of the church above the protection of children. The recent Ferns case is no different.

According to Colm O’Gorman director of One in Four, the Catholic church has produced guidelines that essentially will continue to protect the church and leave children open to sexual abuse.

‘Within the very policies they have issued today, they have one set of rules for those working within the church and another set for the rest of us. If an allegation is made against somebody working within church they adjudicate as to whether or not to refer to the civil authorities’

This system of protection for the church is similar to that afforded to solicitors and financial institutions, especially the banks. A filter is how Ken Murphy (President of the Law Society) described it on Liveline last Friday.

This is how it works. If an ordinary citizen rapes a child, robs a client or steals from a customer, they are immediately subject to the law and if found guilty, usually end up in jail.

Under the Catholic Church filter, the local Bishop will decide whether or not the civil authorities should be informed. To date, nearly all decisions have favoured the Church rather than its victims.

Solicitors operate a system of filters that gives them virtual immunity from the law. If a solicitor robs his/her client of thousands, the whole case is dealt with by other solicitors, behind closed doors. Neither the State, courts nor police play any part whatsoever.

The rogue solicitor can present all the evidence he wishes in his own defence in front of his own peers. The impression I picked up from last Friday’s Liveline is that the victim is afforded no such opportunity.

In addition, the Law Society operates virtually as a secret society. For example, try to find out how many solicitors have been reprimanded, fined or struck off in the last five years or just for the fun of it ask for access to the society’s annual reports – you’ll be waiting.

The filter for financial institutions comes in the guise of The Financial Regulator . Most people think that the regulator is there to protect citizens from the excesses of the financial world – Wrong. The regulator exists to protect the financial institutions, not Joe Bloggs. Here’s just one of many examples.

259 cases of overcharging have come to light since May 2004, involving 32 financial institutions. None of the offenders have been punished and all their identities are kept secret by the regulator. All they are required to do is repay the money overcharged/stolen.

This policy of secrecy is of enormous benefit to the financial institutions but puts the citizen at a great disadvantage in that he doesn’t know who the “cowboys’ are.

The only real protection the ordinary punter has from these so-called pillars of society is investigative journalism or whistleblowers.

So, the message is – if you want virtual immunity from the law, become a priest, banker or solicitor.

Thieving solicitor goes free

We learned today on RTEs Liveline, of the first thieving Irish solicitor to get away scot free with robbing a client.
Jack, the victim, rang in to say that the solicitor who robbed him of €5,000 has been given the lowest possible “punishment’ by the Law Society’s Complaints Committee – a reprimand.

This committee has decided that there is no need to forward Jacks case on to the Disciplinary Committee, which is the next level of the Law Society’s “justice’ system

Meanwhile, in the UK, it has been revealed that lawyers double charged clients involved in a compensation scheme for miners.

Enquiries have been launched by the Law Society of England, The Department of Trade Industry and most tellingly by The Serious Fraud Squad.

So, in England we see the legal profession, the Government and the police all immediately involved in investigating these serious criminal allegations.

In the corrupt state of Ireland, solicitors are allowed to decide for themselves, in secret, what “punishment’ they will mete out to their colleagues. The State has no involvement or interest whatsoever.

This serves as a good example of the difference between a hopelessly corrupt state like Ireland and a functioning accountable democracy.

More later…

Irish (Banks) Mafia

Last night, RTE Television broadcast a Prime Time Special on the subject of ‘overcharging’ by Irish banks.

Over the last couple of decades, Irish banks have robbed millions from their customers and the State. Despite this, neither the State nor police have ever shown any serious interest in bringing those responsible to justice.

Take for example, Allied Irish Banks, the biggest financial institution in the State. This bank is permitted to carry out its own investigations into itself. It also operates its own court system whereby AIB ‘citizens’ who are found guilty of infringing bank ‘laws’ are appropriately punished. The State plays no part in this ‘justice’ system.

Incredibly, AIB also operates its own quasi police force ‘The Irish Business Ethics Unit’. The following is taken from the Sunday Business Post reporting on the latest scam being investigated by this ‘police force.’
(Do the tactics employed by this unit bring any particular historical era to mind?)

The new inquiry (conducted by AIB) relates to claims that AIB branches deliberately changed FX rates on a daily basis during the 1980s and 1990s at customers’ expense.

The Sunday Business Post has learned that AIB compliance officers from its Irish business ethics unit have conducted interviews at its headquarters in Bankcentre in Ballsbridge, Dublin, in recent weeks.

Former senior executives and current staff members were quizzed for up to two hours last month and were warned that any future tribunal of inquiry could use the evidence gathered as part of the investigations.

Those questioned were sworn to secrecy and were not offered union or legal representation. Staff and former executives were urged during the interviews to identify managers who allegedly encouraged the altering of FX rates. They were shown pieces of paper and asked if those named were responsible for the practices.

The so called Financial Regulator plays only a peripheral role in dealing with these activities. To date, the regulator has shown no interest whatsoever in taking effective action against criminal activities in the Irish banking sector.

Victory for corruption

“I think the idea of some group of citizens setting themselves up with absolutely no justification, to enquire into others, is something that I always thought was quite sinister and inappropriate.”

(Mary Harney, RTE News, 8th December-2nd item).

This quote is not directed at a terrorist group, mafia organisation or an organised crime gang. It is aimed at the Centre for Public Inquiry (CPI) whose mission statement is;

“To independently promote the highest standards of integrity, ethics and accountability across Irish public and business life and to investigate and publicise breaches of those standards where they arise.”

The centre is facing closure after the so-called Minister for Justice, Michael McDowell convinced Atlantic Philanthropies, the trust founded by Irish-American millionaire Chuck Feeney, to withdraw funding.

The decision was made because of the alleged connections of CPIs chief executive, Frank Connolly to the IRA. But the real reason for the attack on CPI is the fear of how effective it may be in exposing corruption.

If the centre is forced to close, it will represent the single greatest victory for those who are determined to prevent effective investigation into corruption in Ireland.

According to the ‘police state’ polices of Harney, McDowell and Ahern this website could be described as ‘sinister and inappropriate because it is maintained by, to quote Harney –

“A small group of self-appointed citizens.”

Are we to soon expect a ‘knock on the door’ in the middle of the night?

I copy below the complete letter from a Prof Dermot Walsh in today’s Irish Times. I think he provides a good explanation of the damage that this Government is doing to Irish democracy.

Madam, – One of the hallmarks of a police state is the extent to which the government of the day uses police intelligence to undermine any source of opposition to its hold on power. A standard example is declaring political opponents guilty of serious crimes on the basis of “reliable” police evidence which is available only to the government.
That, of course, is exactly what the Minister for Justice did some months ago with his allegations against the Sinn Fein leadership.
His current allegations against journalist Frank Connolly are even more sinister. This goes much deeper than a move to derail any attempt by Sinn Fein to replace the PDs in power. It is a direct attack on investigative journalism that has exposed deep-rooted corruption in government. It will also have the effect of undermining an independent body working to expose corruption, to promote the highest standards of transparent, democratic government and, by implication, to prevent the current slide into a police state.
This is not the first occasion on which a Minister for Justice has used Garda intelligence or resources in a manner that has curbed investigative journalism. It is a first, however, for the use of Garda intelligence to smear individuals with serious criminal allegations as if they were fact. Not only does this deny the individuals in question the fundamental right to have criminal allegations against them determined in accordance with due process, but it also blurs the distinction between police intelligence and judicially proved fact.
The folly of this approach is vividly illustrated by the growing number of individuals who have been at the receiving end of serious criminal allegations on the basis of Garda intelligence which subsequently proved defective.
That the Minister should use Garda intelligence in this manner is a disturbing indication of the extent to which this country is assuming the mantle of a police state. This is a development which should be of concern to everyone, irrespective of political creed, who values basic principles of transparency in government, independence in the administration of justice and a person’s right to due process before being declared guilty of a criminal conduct. – Yours, etc,
Prof DERMOT WALSH, Newgarden North, Lisnagry, Co Limerick.

Solicitor intimidation

The murky events continue in the solicitor’s theft case. On last Monday’s Liveline

Noel Barry of the survivors group Right of Place related how some solicitors are intimidating clients who made complaints against them. The solicitors are putting pressure on their clients to say that they only made an enquiry rather than a complaint regarding “overcharging’.

One of the complainants, Mary, who was robbed of €10,500 a year and a half ago, got her money back but her request for interest on the sum was refused. A very interesting aspect of this case is that Mary got her money back through the Law Society and was given no explanation of why it was taken in the first place.

It seems, therefore, that in addition to acting as judge and jury on solicitors found guilty the Law Society is also acting as a kind of buffer between the accused and their victims.

This, of course, is related to the fact that the Law Society operates in a conflict of interest environment. It represents solicitors while at the same time making the regulations that they must abide by. It is obvious from Mary’s case that the Society favours its members over their victims.

There are some other “interesting’ aspects of this case that should be kept in mind.

1.The allegations against the solicitors amount to very serious criminal charges yet the Law Society is allowed to conduct its own “court’ behind closed doors, in secret. A spokesman for the Law Society in England informed me that in a similar situation it would be unlikely his society would be granted such powers.

Under the 1994 Solicitors Amendment Act, it is illegal for a solicitor to deduct a percentage of any damages awarded to a client by a court. There is evidence that this law has been repeatedly broken by solicitors and could amount to the theft of millions from clients. Despite this there is no interest whatsoever from the Law Society or the Government in conducting an investigation.

There are dozens of so-called regulators in Ireland that cost the taxpayer millions every year. None of them are effective in doing their jobs. Practically every incidence of corruption revealed in the last twenty five years has been by the media, by error or in recent times by whistleblowers.

Magic Ireland

Anyone still worried that the assurances given by the Foreign Minister, Dermot Ahern, regarding the CIA rendition flights (See previous post) did not fully clarify the Irish position will surely be happy to read the following statement from the great Ayatollah of Irish self deception himself, Minister for Justice, Michael McDowell, on RTE last night.

‘The fact is that the American government is a friendly state and is hugely friendly and supportive of everything that happens in Ireland, has given an unqualified assurance that they have not, do not and will not use Irish airports for the transfer of prisoners other than in accordance with Irish law, and I accept that.’

What these foreign feckers don’t understand about Ireland is that it’s a magic land.

So, if the banks rob millions from the State and their customers – that’s ok, just say ‘It didn’t happen’and hey presto – it never happened.

If solicitors rob tens of thousands from their most vulnerable clients – Why, all you have to do is allow the Law Society deal with the case in their secret valley where a large number of solicitors who would be considered criminals in the real big bad world are magically transformed into a small band of spirited leprechauns who got over-excited on coming across a pot of gold.

If there is strong evidence from the international community, Amnesty International and various other human rights groups that Shannon is being used as a transfer point for prisoners – then all you have to say is – ‘we don’t search the aircraft and the US Government have denied it, therefore it isn’t happening – Magic

Beating around the bush

Several European countries have begun enquiries into allegations that the Americans have been using their airports for rendition (torture holiday?) flights. I particularly liked the Dutch response, mixing humour with threat.

‘ prompting Dutch foreign minister Ben Bot to warn that his country could reconsider its 1,100-strong military presence in Afghanistan if the Americans “continue to beat around the bush” on the issue”.

Given that Ireland is almost totally dependent on American industry, the response by the Irish Government was predictable. When Condoleezza whispered in Dermot Ahern’s ear:

‘We would never do such nasty things”

Dermot rushed to assure the Irish people.

‘We fully accept the categorical assurance of a friendly nation.’

He couldn’t, of course, tell the truth, which goes something like this.

‘Please, please Connie, we will do anything, agree to anything, ignore any action, even torture so long as you keep the dollars rolling in.

Dodgy Foundations

Anyone who doubts that the Irish economy is built on some very dodgy foundations should listen to RTEs This Week programme last Sunday.

TCD economist Antoin Murphy explains how multinational companies are using Ireland as a giant money laundering operation. Countless billions in profits, generated in other countries, are being “washed’ through our economy as if they originated here.

The Government and IDA are happy with this manipulation of profits but the US Government is not at all happy and is threatening to take action. Shane Ross writes about the situation is last Sunday’s Independent.

‘These excesses should not blind us to the dependence of the Irish economy on US multinationals. We desperately need them to stay. Such an admission is unfashionable. We like to pretend that we created our boom on our own. We didn’t.

Ask Irish politicians what caused the boom and they will nominate ‘social partnership’ as the font of our prosperity – a reason carrying an unsubtle implication that they themselves had a hand in it.

Nothing could be further from the truth.

Our Celtic Tiger is multinational-conceived, created and christened. ‘

Blowing with the wind

The was some interesting debate on the slave trade polices of Irish Ferries on Q & A last night.

Dick Roche strongly defended the actions of Irish Ferries on the same programme last September when the story first broke.

‘The fundamental issue is that hard economics have hit this company. The most important thing is to preserve these companies’

No sympathy for Irish Ferries workers there.

On last night’s programme, he seemed to have a better understanding of the ruthlessness of Irish Ferries policy. When John Bowman challenged him on his change of mind, Roche got all flustered and did what he does best – waffled.

At the time, I expressed puzzlement at the views expressed by Roche and John Waters on the matter.

‘The only thing that can be said in their defence is that neither of them seemed to understand the full implications of what Irish Ferries are planning to do.’

Obviously, Roche does not have the ability to assess such matters at short notice but he does possess that great talent common to all Irish politicians – Blowing with the wind.