Wallace corruption confirms Ireland as an intrinsically corrupt state

It has always been the core claim of Public Inquiry that Ireland is an intrinsically corrupt state.

This claim is based on the fact that, unlike functional democracies, the Irish political system does not recognise or act against powerful and influential people when they are found to be involved in corruption.

This is not an opinion, it is a verifiable fact that can be confirmed by simply taking a look at how the endless incidences of corruption over the last four decades were or were not dealt with.

The acceptance of corruption as a normal part of Irish political life by the body politic has resulted in the disease spreading into every area of public and private life.

In particular, the spread of the disease into the administrative, regulatory, banking/financial/business sectors has resulted in very serious damage to the best intersts of Ireland and its people.

No action whatsoever has been taken to eradicate the disease for one simple but deadly reason.

The current body politic, that introduced and allowed the disease to fester, is still in power and is still putting its own interests and the interests of its friends and supporters before the interests of the Irish people.

The Wallace corruption scandal is just the latest example of how the corrupt system protects its own and demonstrates how the disease has negatively affected other sectors of socitey like the media and ordinary citizens.

Every incidence of political corruption that has gone unpunished, big and small, over the past four decades or so has chipped away at the credibility, trustworthiness and moral worth of those who inhabit the ruling body politic.

The system has become so corrupt, so dysfunctional that even those independents, elected by the Irish people in a desperate cry for even a semblance of honesty and accountability, have abandoned the people in favour of the corrupt system.

The credibility, honesty and trustworthiness of Irish politicians now stands at zero.

The damage they are causing to Ireland and its people is immense and ongoing.

While the Wallace corruption scandal is just the latest in a long line of such incidences it is worth analysing in detail because it clearly exposes what Public Inquiry has been claiming for many years – Ireland is an intrinsically corrupt state.

Let’s start with Wallace’s admission on live radio that he knowingly broke the law, that is, he knowingly carried out a corrupt act.

I under declared the VAT in the hope that…

What do you mean you under declared the VAT?

When I sent in the VAT returns I didn’t declare all the VAT I owed because I would have been put out of business there and then.

By accident or on purpose?

On purpose.

I made what I thought, even though it was illegal, I thought it was the right thing to do

These are the words that law enforcement agencies, politicians, ordinary people and, indeed, Mick Wallace himself should focus on and nothing else.

Once the ramifications of Wallace’s admission of illegality are dealt with, once the State, on behalf of the people, have brought him to justice, then the nation can indulge in endless analysis on the pros and cons of his behaviour.

Sadly, because Ireland is an intrinsically corrupt state, because there’s hardly a single politician with enough courage or integrity to stand up for Ireland and its people, no action will be taken against this renegade politician.

And because of that the people of Ireland will continue to suffer from the destructive disease of corruption.

Copy to:

Mick Wallace
All political parties
Independent TDs

Included below the Wallace interview of 7th June on Morning Ireland.

How are you going to pay the 2.1 million to owe to the taxman?

At the moment the company would be deemed insolvent and since the ACC moved on us in October and got this €19.4 million judgement agaisnt us we have been unable to get work

Up to that point I had been in an agreement with Revenue. I had made the declaration back in 2010 and I was paying so much a month.

But after ACC moving on us we were no longer able to get work so it’s unlikely that Revenue will get the money.

So you don’t think this money will be paid?

That would be my honest opinion.

Where does that leave you as a TD?

Well, Mick Wallace and Wallace Construction are two separate entities.

Mick Wallace does have a tax clearance cert, Wallace Construction doesn’t.

To the best of my understanding of the law Mick Wallace is allowed to have a tax clearance cert provided his tax affairs are completely in order which they are on a personal level.

Is this not your company?

It is my company, yes.

So how can you separate the two?

Well, if you understand company law. Wallace Construction, a limited company of which I am the managing director of and Mick Wallace the private individual is a separate entity. T

hat’s just the law, I didn’t make it up.

Do you believe that your are in any way personally liable for this €2.1 million tax bill?

I do feel responsible for it, I do not feel good about it.

Owing money to banks who took gambles by giving me the money the same as I took gambles by borrowing it…and I’m far from proud to be owing the Revenue money.

I had a very successful business, I didn’t go mad. A banking crisis arrived and my property value dropped dramatically.

I did my best to try and keep the company afloat. I could have just thrown the keys at the banks and everybody else at the time and walked away from it. It has been very difficult trying to keep it going but I tried but I have failed.

The economic crisis has proved too much for my company.

Just to be clear, the settlement that we’re referring to and when we say settlement that’s an agreement on a figure rather than the bill actually being paid, is this settlement with the company or with you?

With the company. The story behind the money was €1.4 million in VAT. I sold apartments and the money that was coming in all went to the banks because the deposits had originally been used for ongoing business and the money wasn’t there for the VAT because the banks were taking their maximum, we weren’t able to pay it.

I under declared the VAT in the hope that…

What do you mean you under declared the VAT?

When I sent in the VAT returns I didn’t declare all the VAT I owed because I would have been put out of business there and then.

By accident or on purpose?

On purpose. Obviously I was wrong to do so but I did so thinking that I could pay the VAT the following year.

If I had put it down at the time I would have been put out of business there and then. There wouldn’t have been any deals with the Revenue at that time.

I thought I could save the company and pay my VAT the following year but obviously when you’ve reached the point where I felt that that prognosis wasn’t going to work I made my declaration to the Revenue.

The Revenue came in then and examined all our books and they found that the declaration we made was accurate and then we asked to try continue trading and agreed that we would pay so much a month and that we did for over a year up to the point where ACC took the judgement against me in November 2011.

The €19.4 million people just to remind people.

Yes, and that was an end to the company because we were no longer solvent and were finished trading.

How many people apart from you are liable to pay the €2.1 million bill to Revenue, are there other directors involved?

No, just myself.

What would you say to people listening to you saying you owe €2.1 million to the taxman, that you knowingly declared a false VAT declaration, are you a fit person to remain in the Dail?

Well, obviously I believe I am. I acknowledge I was wrong but I did it in good faith.

I really did believe that I would have been able to pay the VAT and I was trying to save the company.

I had 60 people working for me, I was trying to save their jobs, I was dealing with four banks that were putting incredible pressure on me. It was a difficult decision to make at the time.

I made what I thought, even though it was illegal, I thought it was the right thing to do.

In hindsight it would have been better if I had just let the company go at the time.

The haves and the have nots

Letter in today’s Irish Examiner.

Politicians must lead by example

The country is bankrupt with an annual deficit of €15bn, which means we need to borrow €300m a week just to keep the country going.

This Government has forced austerity, emigration and unfair levies/charges on the nation.

We have €3.8bn of new taxes and cuts to services in 2012 and similar measures will initiated up to 2015.

Then we will probably need a second bailout and the cycle of austerity and hardship will begin again.

Fine Gael and Labour have reneged on their manifestos and promises to the Irish electorate by caving in to bondholders and German brinkmanship.

Instead they gone for easy options, ie, cutbacks on fuel allowances for elderly, reduced support to disadvantaged schools and community work schemes, decreased allowances to young disabled people, etc.

They have adopted a code of silence on the emigration crisis which has seen 76,000 emigrate in the past year.

The Irish people and taxpayer are paying through levies and universal social charges for the bailout which has evaporated into our failed banking system and Nama.

Currently 450,000 are unemployed, tens of thousands are in mortgage arrears or negative equity, 1,500 people emigrating weekly, business close daily, citizens’ electricity has been cut off, and people still lie on trolleys in the corridors of our hospitals.

While the country is engulfed with austerity and hopelessness, the lifestyles of our politicians and their exorbitant wages and allowances have remained almost untouched.

The Taoiseach gets €200,000 and up to €118,000 in expenses and allowances (a total of €318,000); Mr Kenny earns 20% more than the British prime minister and gets 8.9 times the average industrial wage.

The Tánaiste gets €184,000 and up to €120,000 in expenses and allowances, a total of €304,000. Mr Gilmore earns 9% more than the deputy PM in Britain and his allowances are greater than the annual wage of President Hollande of France.

The French president and his ministers took a 30% wage cut when taking up office. Cabinet ministers get €169,000 and up to €120,000 in allowances and expenses, a total of €289,000.

Junior ministers €get 130,042, TDs get €93,000, and senators €65,521.

All these can claim annual vouched and unvouched expenses of €50,000 plus.

TDs earn 21% more than British MPs and 8.1 times the average industrial wage.

Central Bank governor Patrick Honohan took a voluntary 15% pay cut in 2011 and a further cut of €63,324 in 2012.

The political fraternity should follow his example.

John Lyons
Bandon
Co Cork

Planning corruption magic: Now you see it, now you don't

So here’s how things are done in a banana republic.

Some very serious allegations of corrupt planning come to the attention of a government minister.

This minister does something very, very unusual, he instigates an internal investigation to see if there’s any substance to the allegations.

The investigation finds that there are indeed some very serious questions that need answering

But just as the minister is about to launch an independent, external inquiry he loses office and is replaced by a minister who thinks the allegations are spurious.

But this new minister can’t just ignore everything, even in a banana republic that wouldn’t look good, so he orders (another) internal review and lo and behold, this new review finds no evidence whatsoever of any planning corruption.

This ‘magical’ conclusion means there’s no need for an independent, external investigation.

And so, with a great sigh of relief, the politicians who got such an dreadful fright when the allegations were first made, can now return to their usual day to day work of collecting expenses, cheating the taxman and screwing ordinary citizens into the ground.

Happy days.

Joe Higgins joins the ranks of sleazy hypocrites

It was with a mixture of disgust and despair that I listened to Joe Higgins mouthing pure bullshit when challenged over the disgraceful response of the so-called Technical Group regarding the Mick Wallace scandal.

Higgins was, and I stress was, one of the very, very few politicians with any trace of honesty or integrity.

His reaction to this scandal has now exposed him for what he really is – a standard, bog trotting gombeen politician who is willing to sink to any level of hypocrisy in order to defend his particular patch of the corrupt political system.

He, and his confederates in dishonesty, were elected by Irish citizens in a desperate attempt to find some honesty, some accountability, some courageous leadership from the body politic.

When a blatant, straighforward, no argument case of pure political/business corruption was placed right before their eyes they could have stepped up to the plate and acted in the best interests of Ireland and its people.

Instead, they abandoned the best interests of the people by acting in defence of their own narrow patch of the corrupt political system.

I dont really need to comment/analyse any further on Higgins’ disgraceful behaviour.

His own words are more than sufficient to admit him into the sleazy ranks of traitorous Irish politicians who instinctively recoil in horror when asked to put the good of the country before their own narrow, hypocritical interests.

The Technical Group has absolutely nothing to do with this in any sense whatsoever.

The only group that I will accept responsibility for is the Socialist Party TDs and United Left Alliance.

In the Socialist Party we are not joining what is a chorus in certain sections of the media and some politicians demanding that Deputy Wallace resigns.

The fact that we’re not joining that chorus doesn’t mean that we take in any way less than seriously this issue.

But we also take very seriously the democratic rights of the 17% of the electors in Wexford who put Deputy Wallace into the Dail.

They have democratic rights in this and it is between them and Deputy Wallace.

It is not for other politicians or the media to decide who will represent them.

Copy to:
Joe Higgins

State secrecy: A powerful and extremely destructive weapon

On 31st January last I rang the Office of the Director of Corporate Enforcement (ODCE) to inquire whether the Bailey brothers case was still ongoing.

Over the years I have made many such calls to the ODCE to check on the progress of various cases.

My questions were always basic – Was the case still active, how was it progressing, if it was complete what was the outcome and so on. Invariably, my questions were answered and I was happy enough.

On this occasion the shutters were pulled down.

The ODCE refused to answer even the most basic of questions and when I persisted I had secrecy legislation quoted to me as justification for refusing to answer questions.

I submitted my questions in writing to the ODCE and received, by post, a letter from an Assistant Principal Officer informing me that not only would my questions not be answered but that the ODCE did not have tell me, or anyone else, whether a specific company or individual was even under investigation.

It was obvious from the content of this letter and the tone of phone converstations with ODCE staff that the submission of a Freedom of Information request would be a waste of time so, instead, I made a formal complaint to the Ombudsman.

To my surprise the Ombudsman said that she could not examine complaints concerning the ODCE as it was outside the remit of her office.

I was advised to contact the Department of Jobs, Enterprise and Innovation for assistance.

My request to this state agency was also met with a brick wall. I was informed that the Department did not have the authority to instruct the ODCE to disclose information.

So, in summary:

The ODCE refuses to provide even the most basic information regarding its activities, citing secrecy legislation.

The Ombudsman has no power to compel him to release any information.

The government department/minister under which the ODCE operates is also powerless to act.

This, in effect, makes the ODCE an untouchable State agency. No authority in the land possess the power to question its decisions.

Not even a High Court judge can question its activities.

This was highlighted recently when Mr. Justice Peter Kelly was firmly and publicly rebuked by the DPP for having the temerity to challenge the ODCE’s handling of the ‘investigation’ into Anglo Irish Bank.

This granting of absolute and unquestioning power to a State agency poses serious dangers not just to Ireland and its people but also to the officials working within that agency.

If an official was suffering from some sort of personal crisis, say, for example, an addition to gambling, he would be extremely vulnerable to exploitation from any number of sources intent on perverting the course of justice.

If an official, observing that he is subject to little or no oversight and that his actions/decisions are protected by an impenetrable wall of secrecy laws, could easily exploit the situation to his own advantage.

If an official was beholden to a political party for his position he could find himself coming under pressure not to pursue a case against a friend of that party.

I want to stress that I am not for a moment suggesting that anyone within the ODCE is involved in any such activity.

I am making the point that such activities are a reality in every country in the world and Ireland is no exception.

All humans are vulnerable to such dangers and it is because of such vulnerability that functional democracies ensure that a system of checks and balances are in place which are designed to protect the office holder, the state and its citizens.

Checks and balances such as a proper Freedom of Information Act and a strong, independent oversight authority with the power to demand answers from government agencies that are clearly unable or unwilling to do their jobs properly.

Ireland does not and never has had such checks and balances in place.

If such checks and balances were in place in Ireland no State authority would be allowed to refuse to say if an individual or company was under investigation or not.

Such basic and completely harmless information is immediately and unquestionably available in all functional democracies.

If such checks and balances were in place in Ireland no State authority would be allowed to endlessly prolong investigations into the activities of powerful and influential people.

The key sentence in the letter I received from the ODCE is:

I regret that it is not possible to make public details of any of our cases, nor even to discuss whether a specific company or individual is actually under investigation by the Office (my emphasis). This is because of the statutory duty of confidentiality imposed on the Director of Corporate Enforcement and his officers under Section 17 of the Company Law Enforcement Act 2001.

I do not accept that the State/ODCE has the right to take upon itself the power of such absolute secrecy and, at the same time, claim Ireland is a functional democracy.

The denial of such basic information by a state agency moves the scandal from one of routine investigation into alleged corruption to that of a serious abuse of power by a State agency.

The assumption by the ODCE of such draconian power, whether legitimate or misguided, places Ireland within that category of undemocratic states where the interests of the state and its friends are deemed to be more important than the interests of ordinary citizens.

The methods used may differ but the results are exactly the same – the complete denial to citizens of any information whatsoever.

Citizens living in such undemocratic state are denied the right to know what their government/state agencies are doing, or perhaps more importantly, not doing in their name.

Such absolute denial of information, has the effect, whether intentional or not, of protecting the corrupt and the interests of those who benefit from protecting the corrupt.

And we can see, by even the most cursory examination of the hundreds of scandals over the past few decades, that in practically every case it is the corrupt who win out and Ireland’s reputation and ordinary citizens who pay the price.

Unwarranted and unexplained delay, in addition to absolute secrecy, is also a feature of the dysfunctionality of Ireland’s administrative system.

Again, whether intentional or not, secrecy and delay have the undeniable effect of protecting the corrupt and, as a consequence, damaging the best interests of Ireland and its people.

Despite claims by politicians and officials, the Bailey brothers case is not particularly complicated. The facts of the case have already been well established.

Briefly; the Bailey brothers:

Made a corrupt payment to a politician and to a civil servant.

Obstructed and hindered an Oireachtas tribunal on several occasions.

Gave false evidence under oath.

Engaged in massive tax evasion.

There is not the slightest doubt that if such activities were engaged in in a functional democracy the case would have been dealt with immediately by the police and courts and would almost certainly have resutled in long jail sentences.

In Ireland the ODCE has been ‘investigating’ for over six years with the absolutely minimal aim of banning the Bailey brothers from acting as company directors for a limited period of time.

Yet here we are, more than six years into the case, and not even a hint of accountability.

In functional democracies similarly long delays would attract strong and persistent questioning from media, opposition politicians, Government ministers and ordinary people.

The enforcement authority in charge of the case would, at the very least, be forced to provide a comprehensive explanation for any serious delay.

It is an undeniable fact that the legal maxim; justice delayed is justice denied, which is accepted in all functional democracies, does not operate in Ireland when it comes to investigating the activities of powerful and influential people.

Of the very many serious cases of corruption over the previous few decades involving powerful people I can think of none that were dealt with in a quick and efficient manner.

In practically all these cases those involved were never brought to justice. The indications are that the current investigations into the activities of certain bankers will result in the same predictable outcome.

But the core point I want to make here is that, unlike all functional democracies, Ireland bestows absolute power on senior individuals within its enforcement agencies.

In Ireland there is no oversight of such individuals, no state authority has the power to effectively question their decisions, motives or agendas.

No politician, even if they had the courage or will, can, it seems, challenge the activities of such individuals.

Just last week we witnessed the latest episode in the Bailey brothers scandal when NAMA, another state agency bestowed with draconian secrecy powers, refused to answer questions regarding the granting of €13 million in funding to a company controlled by the brothers.

Fianna Fail TD and chairman of the Public Acccounts Committee, John McGuinness, said that the taxpayer was entitled to precise and accurate information regarding deals done by NAMA.

This is incorrect.

NAMA, the ODCE, the Financial Regulator and indeed most government agencies operate under an oppressive cloak of draconian secrecy laws which are specifically designed to avoid releasing precise and accurate information.

Whether intentional or not these secrecy laws provide watertight and ongoing protection to the corrupt individuals and organisations that have brought Ireland to the edge of ruin.

State secrecy is a powerful and extremely destructive weapon that causes serious damage to the best interests of Ireland and its people.

Copy to:
ODCE
Ombudsman
Department of Jobs, Enterprise and Innovation

I have included below the replies to my queries from the ODCE, the Department of Jobs, Enterprise and Innovation and the Ombudsman.

Dear Mr. Sheridan,

Your request for information has been passed to me for attention. Your request was in three parts:

• Is the ODCE currently engaged in proceedings or any other action against Michael and Thomas Bailey, directors of Bovale Developments?
• If such proceedings are in place what stage are they currently at?
• If they are complete what was the outcome?
I regret that it is not possible to make public details of any of our cases, nor even to discuss whether a specific company or individual is actually under investigation by the Office. This is because of the statutory duty of confidentiality imposed on the Director of Corporate Enforcement and his officers under Section 17 of the Company Law Enforcement Act 2001:

17.-(1) Information obtained by virtue of the performance by the Director of any of his or her functions which has not otherwise come to the notice of the public, (ODCE emphasis) shall not be disclosed, except in accordance with law, by any person…
As certain information is in the public domain, you already have access to that information, as it is available on our website. To facilitate you, I have replicated below the information already published.
• Press Statement dated 31 August 2006 at PART I
• High Court Judgement dated 1 November 2007
• Supreme Court Judgements 14 July 2011
• High Court Judgement of 1 November 2007
This is the sum total of information that can be released, for the reasons outlined above. I hope this is of asistance to you.
Yours sincerely
Assistant Principal Officer

Dear Mr Sheridan,

I refer to your email below the content of which has been noted.
In response to your first question I can confirm that under Section 17 of the Company Law Enforcement Act 2001 the Department does not have the authority to instruct the Director of Corporate Enforcement to disclose information. Section 17 of the 2001 Act relates to the disclosure of information and sets out the independence of the Director.
In relation to question two, the Director is a statutory independent officer and as previously stated under Section 17 of the Company Law Enforcement Act 2001 the Director is not in a position to make available information relating to any case or indeed to discuss whether a case is under investigation.
I hope that you find this information helpful.
Kind regards

Dear Mr Sheridan,

I refer to your recent correspondence in connection with ODCE.
The Ombudsman may investigate complaints against Government Departments and Offices, Local Authorities, the Health Service Executive, An Post and bodies within the remit of the Disability Act, 2005. The Ombudsman cannot examine complaints concerning the ODCE as it is outside the remit of this Office. The Department of Jobs, Enterprise and Innovation may be able to assist you with this matter. I regret therefore that we cannot be of assistance to you in this matter.
Yours sincerely

Haughey will never be remembered as a great statesman

Letter in today’s Irish Independent.

It is grotesquely hilarious to witness the Haughey family receiving an apology from an estate agent because it mistakenly claimed that Libyan dictator Colonel Gaddafi and Margaret Thatcher had visited the former Taoiseach’s home in Kinsealy.

It appears that the family is concerned that the former Taoiseach’s reputation could be sullied if associated with these particular people.

Whatever about Col Gaddafi’s reputation Mrs Thatcher’s good name would certainly be damaged by any association with the disgraced former Taoiseach.

The policies and politics of Mrs Thatcher can, and are, rejected by a great many people but it cannot be denied that she was a leader of courage and principles who worked selflessly for the good of her country and people.

Mr Haughey, on the other hand, abused political power to enrich himself at the expense of the Irish people.

Mr Haughey had three overweening ambitions in life — money, power and the hope that he would be remembered as a great statesman.

He succeeded in the first two but will never achieve the third.

Anthony Sheridan
Cobh,
Co Cork

Why is Ireland different?

JP Morgan, one of the most powerful banks in the world, is the subject of an FBI criminal investigation just six days after the bank announced a $2 billion trading loss.

Although the phone hacking scandal in the UK has been simmering for a number of years it is only in the last twelve months or so that the lid has blown off.

Since then a number of investigations, including a police investigation, have been launched.

Dozens of people have been arrested, numerous people, including senior police officers, have resigned or have been fired.

Some of the most powerful people in global media have been hauled before a public, independent, transparent investigation forum and made to explain themselves.

Senior politicians, including Prime Minister David Cameron, are, or are likely to be, the subject of official questioning by independent law enforcement agencies.

Most crucially, these investigations are taking place in real time with real and ongoing consequences for all those involved.

This means justice is seen to be done as those involved are forced to explain themselves by independent state authorities, working on behalf of all the people and the democratic system.

Nobody in the US or the UK has stood up in astonishment and asked – My God, what’s happening, why are these powerful people being investigated, why are they being brought to account. Who introduced this system of law enforcement, accountability and justice?

Irish citizens, and particularly those working in the media, need to stand back and ask the most fundamental of questions:

Why is Ireland different?

Bureaucratic guff provides some comic relief

Usually when I receive an email from a government department I ignore the standard waffle at the end which warns that the email is confidential blah, blah, blah….

I received an email from the Department of Education this morning and noticed that the warning had been modified, so I had a read – It was hilarious.

In addition to the usual guff about breaking confidentiality the following warnings have been added.

Misuse of the email may constitute a criminal offence.

The Minister accepts no responsibility for changes made to the email after it was sent.

The Minister accepts no responsibility for the opinions expressed in the email.

The Minister accepts no responsibility for any damage causes by viruses.

Fecking hell, talk about covering your arse.

But the funniest part kindly requests the recipient to notify the systems manager if the email was received in error but also darkly warns:

You are prohibited from reading any part of this email or any attachments.

Law enforcement? Well, it depends

While it’s difficult to generate any great sympathy for the O’Donnell’s it is interesting to note that a group of solicitors and auctioneers can demand immediate access to a private house with the power to threaten the occupiers with imprisonment if they don’t cooperate?

On the other hand the full force of the State’s law enforcement agencies, despite decades of investigations and revelations, are unable to touch politicians, bankers and many others found to be corrupt by various tribunals.