Category: Regulatory Agencies

Wild West banking hasn't gone away you know

The corrupt political/administrative system that brought Ireland to its knees in 2008 is still in place.

For a short period of time after the rotten and incompetent Cowen government fell there was panic among the elite that have ruled and ruined Ireland for the last several decades that their time was at an end.

That panic has now receded with the knowledge that the enormous cost to be paid for the decades of corruption has been safely transferred onto the shoulders of the current and future generations of ordinary Irish citizens.

Nowhere is the relief more evident that the old rotten regime is still in place more evident than in the financial sector.

Recent calls from a number of bankers for a relaxation of financial regulation are a clear indication that the system is almost back to its abnormal and destructive worst.

Just last week deputy chairman of AIB Dr. Michael Somers revealed that international banks have told him that they were pulling out of Ireland because of over-regulation.

Now let’s be clear about what’s happening here.

Prior to the economic collapse in 2008 there was absolutely no financial regulation whatsoever.

Banks and other financial institutions regularly engaged in blatant criminal activity without any response from so-called regulatory agencies.

And let’s not fool ourselves (again).

Some international banks may be complaining about regulation but I suspect that the real pressure is coming from within the Irish financial sector.

After all, the gangsters who infest the sector have never experienced any kind of regulation never mind actual law enforcement.

The problem for the Irish political system is, of course, the presence of the Troika.

In the good old days Irish politicians made sure that banks had a clear field to rob and plunder at will without having to worry about inconveniences such as law enforcement.

That Wild West financial environment is not so easy to maintain these days since the arrival of professional regulators in the form of the Troika.

But be absolutely sure about one thing. As soon as ‘regulation’ is back within the hands of our corrupt political/administrative system it will be the Wild West all over again.

Revenue: Don't call us, we've lost the number

A very nice official from Revenue called me this evening in response to my on-going campaign to find out how many people were jailed for tax evasion last year.

The secretariat had searched their files but couldn’t come up with a telephone number for the Press Office.

Fortunately, they did manage to uncover the direct line numbers of two Press Office officials. I’ll be giving them a call in the morning.

Bizarre isn’t it? The Revenue website provides emails and telephone numbers for every office throughout the land and beyond but if somebody wants to call central office, if such an office exists, there’s no number or email.

I don’t think there’s anything sinister or underhand about this. It just seems that Revenue, while providing contact numbers for every possible query regarding the payment of taxes, doesn’t see any need to provide a contact number for those who may have a question regarding their own activities.

And what about journalists? How do they communicate with a Revenue Press Office that has no telephone and an inoperable email?

Do they write letters?

Revenue: Dozens of contact numbers but none for asking questions

The Revenue Commissioners have just published their annual report for 2012 and, once again, there is no mention of how many tax evaders ended up in jail.

So, once again, I phoned to ask for the information. I was told, once again, that I would have to put my request in writing.

The email address provided by Revenue was rejected as non-existent so I returned to Revenue’s website to search for a telephone number or email address, any telephone number or any email address that might put me in contact with a human who might actually answer my question or, Zeus willing, provide me with a working email address.

After many failed attempts I called the Director General’s office.

Hello, could you give me a number or email address to which I could direct some questions regarding your recently published annual report?

Official: I’m not sure, I’ve never heard of anyone asking questions about our annual report.

I was given an email address for the Press Office but it doesn’t work, could you give me the telephone number for the Press Office?

Official: The Press Office doesn’t have a telephone number, just an email. Hang on and I’ll check with my supervisor.

My supervisor contacted the secretariat and they don’t know as of yet who you can contact in relation to the annual report.

Can I take your name and number and we’ll get back to you as soon as we have the information.

Central Bank waffle 1994 – The more things change…

From the Attic Archives – Cork Examiner 23rd December 1994.

This article should provide a bit of a laugh for all those out there whose lives have been destroyed by our corrupt political/administrative/regulatory system.

A bank must be seen to be sound and viable and a safe haven for deposits, according to Central Bank Governor, Maurice O’Connell.

Banks need to be profitable, he told an anniversary seminar of the Irish Bankers’ Federation.

A bank must have a good credit rating. This is why high capital adequacy and other prudential requirements are laid down.

The Central Bank has an obvious interest in seeing that the profits of the banks which it supervises are adequate but not excessive, taking one year with another.

The Irish banking sector has recently been the target of much criticism. It has been accused of ignoring the needs of the small business sector, of paying unduly generous salaries to its senior executives and of making huge profits.

Much of the criticism was simply populist, unfair and unreasonable.

But he added that financial institutions are in a position of some privilege because of their influence in the economic life of the country and a public perception cannot be dismissed.

This imposes certain community obligations that must not be abused.

For Ireland’s financial institutions to develop in a healthy environment, there were two other requirements besides adequate profitability, said Mr. O’Connell.

Supervision must be to the highest standards to demonstrate full confidence in our system.

The Central Bank is well aware of its responsibility in this regard and is committed to applying the highest prudential standards.

Lastly inflation should be minimised, if only for its corrosive effect on the financial system, said Mr. O’Connell.

Penalty points scandal report to be published

The hilariously entitled ‘independent’ internal Garda investigation into allegations that up to 100,000 penalty points may have been quashed is complete and the report is with the Minister for Justice.

I contacted the Minister’s office to ask if and when the report would be published.

Dear Mr Sheridan,

I am directed by the Minister for Justice, Equality and Defence, Mr Alan
Shatter, T.D. to refer further to your recent email concerning allegations 
relating to the processing of fixed charge notices by An Garda Síochána. 



The Garda Commissioner’s report of the examination into allegations 
concerning the enforcement of road traffic legislation was received in the
 Department.

The Minister intends to bring the report to Government at the
 earliest opportunity and to publish the findings thereafter. 


Yours sincerely

Here’s a mad guess – the report will be published on the last day of this Dail term, just before they all head off for a long, long summer holiday.

Ireland: An intrinsically corrupt state

Many years ago, long before the economic catastrophe of 2008, I came to the conclusion that Ireland was an intrinsically corrupt state.

By ‘intrinsically corrupt’ I mean that there is no independent state authority capable or willing to bring those found, or suspected to be corrupt, to account.

As a result we witness, time after time, corrupt individuals, groups and organisations commit serious crimes with no fear whatsoever that they will be brought to justice.

State authorities simply do not act when certain categories of individuals or groups are suspected of corrupt practices.

For example, Irish Examiner journalist Michael Clifford, writing about the Lowry tapes scandal, is scathing of State authorities for their abject failure to act on the matter.

It’s worth reproducing the first few paragraphs of his article:

The controversy that has come to be known as The Lowry Tapes tells us much about what passes for democracy in this State.

The issue involves prima facie evidence that at least one crime may have been committed by serving TD and former government minister, Michael Lowry.

In a proper democracy, such as in Britain, this would be a matter for the police. The matter would be investigated and a file prepared for the state prosecuting body.

Thereafter, charges would either be preferred, or the matter dropped completely on the basis that there was no case to answer.

We don’t do things that way. Instead of a criminal justice process without-fear-or-favour, we have waffle; point scoring; a political culture that is concerned only with what interests the public, rather than the public interest; and a criminal justice system that freezes whenever a politician appears on its radar.

And it’s not just politicians who appear on the corruption radar that are, apparently, immune from any kind of accountability.

It’s also bankers, property developers, civil servants, auditors, members of the legal community, and any other group or individual operating within the protective embrace of our corrupt political system.

Clifford finishes his article by telling us that democratic accountability demands that state authorities properly deal with the Lowry Tapes allegations.

Unfortunately for Ireland and its people such demands will have no impact whatsoever. The system is too rotten, too dysfunctional and too corrupt to take any effective action.

Nothing short of a radical cleansing of the entire corrupt political and administrative system will suffice to put the country on the road to a properly functioning democracy.

Another attack by the State on freedom of expression

It is not at all surprising that the Broadcasting Authority of Ireland (BAI) is introducing draconian rules to further control the media by banning broadcasters from expressing a personal opinion.

The (free) media is, after all, the only power within the state that has the power and will to investigate and expose political and business corruption.

All so-called State law enforcement authorities, including the police, are entirely under the control of the body politic. We only have to look around to see how damaging that is for Ireland and its people.

RTE welcomed the new restrictions, which again, is not surprising as the station is already a fully compliant government broadcaster.

The response by TV3, which is probably seen by politicians as the most dangerous (free) media outlet, best sums up this latest government attack on freedom of expression.

The State now seeks through its regulator to control content on channels it does not own, limiting news and current affairs programming to arid lists of facts.

It prevents non-State broadcasters from having a different view from the State and thereby restricts essential roles of media as watchdog, as court of public opinion and as provider of informed analysis.

At best this is unnecessary ‘regulatory creep’, more harshly it could be called state censorship.

If such a code was introduced in countries like Russia or China it would be regarded as an attack on free media.

Revenue judgement: Only efficient when dealing with the peasants

Revenue chairwoman Josephine Feehily has left citizens in no doubt whatsoever about how her organisation will deal with anybody who is tempted to dodge the upcoming property tax.

Revenue will ruthlessly bring to bear the full arsenal of laws at its disposal to enforce the new tax.

If necessary Revenue will deduct the tax directly from the salary, pension or bank accounts of those who fail to co-operate.

People can only judge for themselves Revenue’s record for pursuing people…We have very extensive data. We will pursue. We’ve done it in the past.

Well I’d like to accept Ms. Feehily’s invitation and judge her organisation’s record of pursuing people.

A report in last Sunday’s Independent reveals that not one person has been prosecuted over the Ansbacher tax criminality.

Ms. Feehily extends three excuses for her organisation’s disgraceful failure in bringing the Ansbacher white-collar criminals to account.

Excuse one: A lack of original documentation.

An essential requirement for a successful criminal prosecution is original documents. There were very few original documents available and there was no legal mechanism to compel Caymen entities to produce such documents.

This excuse is, of course, bullshit. There is a mountain of good quality evidence available to Revenue if it had a mind to prosecute.

The reason this good quality evidence has never been used is simple – it would most likely result in damaging the interests of very influential and powerful people.

Excuse two: Time elapsed has made prosecutions impossible.

Ms. Feehily:

While many cases passed the serious evasion test to be considered for prosecution, the time elapsed – typically in excess of 10 years since the alleged offence occurred – meant it would not be possible to mount a successful prosecution.

Ms. Feehily’s admission that many cases passed the serious evasion test for prosecution directly contradicts her first excuse re original documents.

The ‘time lapsed’ excuse is the most powerful strategy employed by state agencies when it comes to protecting influential and powerful people.

It is no accident, in my opinion, that almost every major white-collar scandal is strung out over many years in order to benefit from the ‘time lapse’ excuse.

Excuse three: Some of the criminals were too old or too dead.

Being too old will not be accepted as an excuse by Revenue for failing to pay the property tax. This excuse is strictly reserved for influential and powerful people.

Neither will death be accepted as an excuse. If an ordinary citizen undervalues his property and the property is sold on after his death the tax due, with interest, will be extracted from the new owners.

Influential and powerful people are exempt from such exacting laws. For example, when the criminal politician Haughey died his wealth was passed on to his family with no response from Revenue.

In functional democracies such ill-gotten wealth is heavily taxed or even seized outright.

Returning to Ms. Feehily’s invitation to people to judge Revenue’s record of pursuing people I think the following sums up what most ordinary people think.

The very fact that so called law enforcement agencies like Revenue and the Financial Regulator are incapable or unwilling to enforce the law when dealing with white-collar crime but are more than efficient in enforcing the law against ordinary citizens suggests that there is indeed one law for the rich and another for the peasants.

Copy to:
Revenue

Insolvency legislation and the publication of personal details

I heard somebody say over the weekend that people who enter into an arrangement under the insolvency service will have certain details published by the Insolvency Serivice of Ireland (ISI) on a public register.

I googled the ISI for a contact number in order to clarify the situation and found, curiously, that all queries relating to the ISI must be made through the Citizens Information Board (CIB).

The official I spoke with at the CIB knew absolutely nothing about the ISI and, after trying but failing to transfer me to several different extensions, put me on holding music.

I hung up after eight minutes and rang the Data Protection Commissioner’s office to see if they knew anythng about the publication of such information.

Predictably, they didn’t. This has nothing to do with us an official told me. On further questioning he made the Commissioner’s position clear.

If a government decides to bring in legislation allowing for the publication of any information under any heading then that legislation overrides all our legislation and there’s nothing we can do about it.

Finally, I rang the Department of Justice, the department under which the legislation is being introduced.

Yes, an official confirmed, information will be published on a public register concerning all those who enter into an arrangement under the insolvency service.

He guessed it was something to do with bankruptcy laws but candidly admitted that he didn’t really know why the Government is insisting on publishing such personal information.

Dog doping? Fraud? – What?…Where?

Investigative Correspondent with the Irish Examiner Conor Ryan has recently been writing about some very dodgy practices in the greyhound racing industry.

Dog doping, fraud, falsification of documents are just some of the very serious allegations involved in the scandal.

One dog under scrutiny belongs to Noreen McManus, wife of JP McManus.

There are three articles covering this story and they are all well worth reading. See here, here and here.

The bigger picture view of this scandal proves, once again, that things are done differently in Ireland in comparison with functional/accountable democracies.

This case is a shocking, but in no way surprising, example of how adept Irish officialdom (including the Guards) has become in looking the other way when it comes to allegation of serious corruption, no matter how strong the evidence.