Category: Regulatory Agencies

Change of tack by Clerk of the Dail? Lowry complaints are to be considered

This morning I had a look at the Ethics in Public Office Act, 1995, which covers complaints to the Clerk of the Dail.

According to the legislation the Clerk of the Dail can reject a complaint if he/she is of the opinion that it is frivolous or vexatious.

With that in mind I again rang the Clerk of the Dail to enquire if all 83 complaints received in response to the latest Lowry scandal were deemed frivolous and vexatious

The Clerk can decide not to pass on a complaint to the Committee for Members Interests if he forms the opinion that the complaint is frivolous or vexatious or that there’s not sufficient evidence to establish a prima facie case in relation to the complaint.

In relation to the complaints received in this case the Clerk will be sending all appropriate complaints, that is, any that are not frivolous or vexatious or whatever he deems to be, to the Committee for attention.

The Clerk of the Dail will write to all complainants (as required in the legislation) outlining his decisions.

The official could not tell me how many were deemed frivolous and vexatious but did confirm that a number of the complaints would be forwarded to the Committee for Members Interests.

Interestingly, she also informed me that complaints were still coming in.

Economist frightened and surprised by banks behaviour

The head of Bank of Ireland, Richie Boucher, gave two fingers to the Oireachtas Finance Committee yesterday.

Bankers have been giving the two fingers to politicians and by extension to the people of Ireland for decades with no fear whatsoever that they will be brought to account.

For decades, politicians have been ‘outraged’ by the arrogant and greedy behaviour of bankers but for some odd reason never seem to get around to actually doing anything about the situation.

And it’s not just politicians who seem to be completely powerless in the face of the all powerful banks.

Take Tony Foley for example. Mr. Foley is a seasoned academic; he’s a senior lecturer in economics, no less, at DCU.

But despite his academic credentials, position and experience Mr. Foley effectively admits that he has no idea what’s going on when it comes to bankers in Ireland.

Not only that but Mr. Foley is also frightened, very worried and greatly surprised by the antics of Irish bankers.

Here’s some of what he had to say on The Late Debate (1 Nov) the other night.

AIB is 99% owned by the Government. It frightens me that AIB are talking about raising interest rates by about five or six percent, that they would have to increase their margins hoping to offer investors a return of about 8 to 12% in equity.

And the thing that surprised me greatly was, this is a government owned bank.

Has the Government told them that this is the target equity requirement?

They talked about talking to investors; I didn’t know the Government told them to talk to investors.

They were talking of maybe in two years investors might be willing to put money in.

I wasn’t aware there was a timetable for re-privatisation of AIB.

What do you think is going on Mr. Foley was asked.

I think they’re forgetting that they’re owned by the state and I think they’re behaving as private sector banks.

We don’t want investors now because the Government owns the equity. We want the bank to operate on behalf of the public.

Later on we might be looking for investors if we want to sell them so I don’t even know why they’re talking to investors right now.

As my good deed for the day I’m going to enlighten Mr. Foley, I’m going to try and relieve him of some of that fear, worry and surprise under which he is clearly labouring.

The state does not own AIB; it’s all pretence.

AIB and the State are marking time in the hope that the crisis will work itself out.

The state is marking time in the (vain) hope that AIB and the economy will somehow recover.

When (if) that happens the pretence that the people own the bank can be quietly dropped.

AIB will then return to what it does best, exploiting and ripping off its customers.

The billions owed by the bank, will of course, remain off the books and on the shoulders of citizens for decades to come.

AIB is also marking time until things settle down. In the meantime it’s continuing to operate, with the full backing of the political and administrative system, as a private sector bank.

This is the part that puzzles Mr. Foley and many other ‘experts’.

They simply cannot accept a brutal reality that has been obvious for many decades.

The state/administrative/political system supports the banks no matter what they do. We saw it with the Dirt scandal, with Ansbacher, with NIB, and endless other scandals.

It’s crucial to understand that state authorities knew about and in some cases actively supported these activities as they were happening.

It’s also crucial to understand that white-collar crime is not actually a crime in Ireland; it’s an intrinsic, well-established aspect of the governing process.

That’s why politicians, bankers and other people of power and influence are, and never will be, brought to account.

The situation will only change when enough people realise that our corrupt political/administrative system does not act in the interests of Ireland and its people.

Copy to:
Tony Foley

Ireland: Still the Wild West when it comes to financial regulation

It has always been the view of Public Inquiry that Ireland is the Wild West when it comes to financial regulation.

And despite the fact that an almost complete lack of financial regulation played a major role in the destruction of our country there is still little or no regulation when it comes to financial activities.

This view is confirmed by a report on One News (8th report) today.

Researchers at Griffith University in Australia found Ireland among the easiest countries in the world in which to set up an untraceable shell company.

Shell companies, which have anonymous and untraceable owners, are often used by criminals and terrorist organisations to launder money.

It is illegal under Irish and international law to set up such a company.

The researchers contacted 3,700 corporate service providers in 62 countries enquiring about setting up shell companies.

Ireland was ranked 56th out of the 62 countries for the apparent ease with which researchers were able to find a provider willing to set up an untraceable shell company.

In a better performing country it took 25 or more different attempts by researchers to find a corporate service provider that would set up an untraceable shell company, in Ireland the figure was less than five.

In other words: Don’t mind about all that regulation/law stuff, we’ll deal with anybody, even terrorists, it seems.

Kevin O’Doherty Managing Director of Compliance Ireland, which specialises in advising firms on their legal responsibilities in this area, was not happy.

It’s a matter of concern.

That has to be the understatement of the year; he goes on:

We’re down there with the Philippines, Ghana and Kenya, which is not the sort of company we want to be with.

People will often throw insults at so-called tax havens but Jersey and the Cayman Islands were right up at the top with 100% compliance.

And that’s where we need to get Ireland Inc. playing. We don’t want people saying that our standards are actually quite shoddy.

Look at developing nations like Saint Kitts and Nevis and Albania scored way higher than Ireland.

And you would like to think we would have stronger controls and procedures in place.

The reference to Jersey and the Cayman Islands suggests that unlike these two islands, Ireland is not just an offshore tax haven but is also quite prepared to risk facilitating criminals and terrorists.

As for shoddy (financial regulation) standards, Ireland fully deserves to be ‘down there’ with the Philippines, Ghana, Kenya and Albania.

Like these countries, corruption in Ireland is not just an occasional event but is a normal and officially accepted part of how business is done.

Oddly enough, it’s the Department of Justice rather than the Central Bank that deals with this matter.

I phoned today to ask some questions but was told that those who deal with such matters don’t talk to the public.

All queries must be submitted in writing.

Copy to:
Department of Justice
Central Bank

All citizens are equal but some are to be treated as diplomats – or else?

Former District Court judge Michael Patwell was recently interviewed by Charlie Bird. He had some interesting things to say.

Around 1966, while working in Customs and on duty at Dublin airport, he confiscated a number of undeclared items he had discovered in the luggage of a well-known sports personality.

A week later he was removed from his nice clean job in the airport and found himself in a boiler suit searching ships on Dublin docks.

Shortly afterwards he was summoned to Dublin Castle where he was given a lecture, reminded that his period of probation was nearly up and had his file ‘reviewed’. He was informed that he could be a little bit over enthusiastic.

It was made clear to him that some people who leave Ireland who are not diplomats were to be treated as if they were diplomats on their return.

The Inspector General of Customs at the time had a son deeply involved in the same sport as the man who had his items confiscated.

About a week after his interview Patwell checked with his colleagues at the airport and was told the man in question had been given back all the items confiscated and no record had been made of the incident.

Disgusted by the whole affair Patwell left Customs and got himself a job as a court clerk.

Isn’t that a great little statement?

Some people who leave Ireland who are not diplomats were to be treated as if they were diplomats on their return.

It really sums up how our corrupt little republic is (mis) governed.

It tells us that even in the 1960s there was an untouchable golden circle that enjoyed massive benefits at everybody else’s expense.

And, of course, that golden circle has grown into a deadly, state-destroying monster in the intervening years.

The curious case of Alibrandi's bank accounts

I see the former papal nuncio to Ireland archbishop Gaetano Alibrandi legged it out of the country in 1989 when it emerged that there were large amounts of unaccounted for money in three Irish bank accounts belonging to him.

What’s really curious about this affair is that it was the Department of Foreign Affairs that, apparently, challenged Alibrandi on the matter.

It’s curious because during the 1980s Ireland was an open sewer of corruption.

The criminal politician Haughey was busy plundering the nation’s wealth with the willing assistance of his business and political cronies.

Such corrupt schemes as Ansbacher and DIRT were in full swing and the banks were openly robbing the state and their customers as a completely normal part of their financial activities.

In other words; unaccounted for money in banks during the 1980s was a fully acceptable aspect of Irish culture.

So-called law enforcement authorities, who should have been doing what Department of Foreign Affairs personnel, were, apparently doing, simply held their collective noses as they stepped over the rotten sewer.

So why, I ask, did those gentle, nothing to do with law enforcement folk at the Department of Foreign Affairs, get all hot and bothered about poor old Albrandi’s accounts?

Of course I don’t know but I am certain of one thing.

It wasn’t because Irish authorities were so shocked at the discovery of a dodgy bank account that they asked Alibrandi to leave the country in case such practices were to infect the honesty of Ireland’s governing class.

The ECB is coming to town to replace Irish 'Wild West' financial regulatory system

Last Wednesday the Central Bank deputy governor Matthew Elderfield told the Irish Funds Industry Association that change is coming.

Change is coming and it will be significant. As I said my key message to you is engage in the debate and be prepared to adapt.

Adapt indeed – and quickly. Why, because the days of gombeen regulation are rapidly coming to an end.

For decades, Ireland, the Wild West of European finance, allowed and facilitated dodgy financial activity that, ultimately, played a major role in the onset of the current economic catastrophe.

But the good times are coming to an end, the European Central Bank (ECB) is coming to town and, thankfully, the Irish gombeen (non) regulatory regime will be no more.

The ECB will have wide ranging powers including the ability to shut down banks, carry out raids and fine them 10% of their annual turnover for not complying with regulations.

So, not only can Irish citizens breath a sigh of relief that, at last, a truly professional financial regulator will be looking after their interests, they can also look forward to something they have never witnessed before, banks actually being raided and fined substantial sums for robbing their customers and other crimes.

The Irish Central Bank will be (rightly) reduced to the level of ensuring that ECB instructions are properly carried out although, given its record to date, even that task will require major reform and a management cultural change of gigantic proportions.

The only worrying aspect of the new regime is that the Central Bank will retain some oversight of banks and be responsible for consumer protection.

I’m sure, however, that the ECB will quickly realise that even these duties are beyond the capabilities of our Wild West style of ‘regulation’ and take appropriate action.

Copy to:
Central Bank

Socialist Party expenses abuse complaint – again

Last Friday (June 29) I submitted a formal complaint to the Ceann Comhairle’s office regarding a possible abuse of expenses by Socialist Party TD Clare Daly.

I had intended submitting the complaint to the Clerk of the Dail but was informed by the Communications Unit of that office that the Ceann Comhairle’s office was the appropriate authority.

Today, as I had received no acknowledgement of my complaint, I rang the Ceann Comhairle’s office to check if they had received my email.

I was informed that they had only received my email on Friday and in any case it was not a matter for the Ceann Comhairle’s office, the Clerk of the Dail was the relevant authority for dealing with such complaints.

An official at the office of the Clerk of the Dail confirmed this morning that his office was indeed the correct authority for dealing with such matters.

So, once more:

To Whom It May Concern:

I wish to lodge a formal complaint concerning an apparent abuse of expenses by the Socialist Party.

My complaint is based on the following exchange between Socialist Party TD Clare Daly and journalist Matt Cooper on Today FM on 26 June last.

Matt Cooper: But why claim the expenses? It has been claimed that Mick Wallace doesn’t claim expenses, why not follow his example?

Clare Daly: We do accept the money and the money is used for local campaigning, supporting works in our area or community campaigns or trades union issues or whatever and we account for that.

I have checked the allowances and expenses section on the Houses of the Oireachtas website and can find no reference that allows politicians to use expenses for political campaigning or trades union activities.

Yours sincerely,
Anthony Sheridan

New legislation to tackle white-collar crime – don't hold your breath

I see the Government has introduced new competition law.

The new legislation will, allegedly, tackle white-collar crime by imposing heavy fines and prison terms.

The new measures will also, allegedly, make it easier for the Competition Authority to secure convictions against those who flout the law.

There’s just one problem, Irish ‘law enforcement’ authorities do not actually enforce law when it comes to white-collar crime.

So no matter how impressive the legislation, no matter how many promises the politicians make that this time it will be different, nothing will change until we see the white-collar criminals in jail.

Irish citizens are strongly advised not to hold their breath.

Spot the difference

Comment by RTE broadcaster on the Wallace tax scandal.

Owing one million to the tax man is one thing, owing a million in VAT is something entirely different.

Translation:

Owing one million in tax is entirely different from owing one million in tax.