Log thread for stories which show FF's cronyism, arrogance, greed and incompetence

Current Affairs
1

http://www.timesonline.co.uk/tol/news/world/ireland/article6991165.ece

From The Sunday Times January 17, 2010

Inquiry on banks to be secret

Stephen OBrien and Tom Lyons

Fianna Fail wants to hold an inquiry into the near-collapse of Irelands biggest banks in secret, despite demands from the Green party and opposition for public parliamentary hearings.

This week Brian Lenihan, the finance minister, is to outline proposals for a two-step investigation into the banking crisis in 2008, which has cost the Irish taxpayer 11 billion to date in capital for Anglo Irish Bank, AIB and Bank of Ireland. In the first phase, an expert or panel of experts will be asked to carry out a scoping report, mapping out areas for investigation by a sworn banking inquiry, according to a senior government source.

This report would then be used to shape the terms of reference for a barrister or judge-led commission of inquiry behind closed doors. Under existing legislation it would have powers of subpoena and discovery, the authority to hear sworn evidence and to make findings and recommendations.

Fianna Fail is believed to favour both phases being conducted in private, with findings and recommendations published at the end of the process. Yesterday Willie ODea, the defence minister, confirmed that the government is considering a two-pronged approach, with an initial expert report shaping the terms of reference of a subsequent inquiry. He said an investigation by the Oireachtas had not been ruled out.

Senior government sources have said that Fianna Fail ministers want any investigation to take place without public scrutiny. They believe this will avoid the risk of a clash with either the garda investigation into Anglo Irish Bank or the director of corporate enforcements separate inquiry into the now-nationalised bank.

Any inquiry would be expected to investigate government decisions that stoked reckless lending by the banks, the financial regulators knowledge of the steps put in place by Anglo Irish Bank to reduce the number of its shares held by Sean Quinn, the businessman, and the circumstances surrounding the movement of 7 billion in funds between Anglo and Irish Life & Permanent.

At a meeting of the Green party last week it was decided that its ministers would press for an early public inquiry by the Oireachtas into the banking crisis. Thats what we are putting to government, said Dan Boyle, the Green party chairman. It will be discussed, I believe, at cabinet on Tuesday. A government decision to opt for a private inquiry is likely to create tensions between Fianna Fail and the Greens.

Patrick Honohan, the governor of the Central Bank, is among those who called for an expert-driven inquiry rather than a Dail committee.

Mike Soden, a former chief executive of Bank of Ireland, said an inquiry would draw a line under the crisis once people knew what caused it.

It will be a total waste of time if it is allowed to become a political circus or a witch-hunt, Soden said. We need to look at relationships between politicians, the regulator, developers, borrowers, insurance companies and investors.

David Went, the former chief executive of Irish Life & Permanent, said: Everybodys role needs to be examined. Im not sure an inquiry at this stage will be that helpful . . . the wounds are too recent. If there is one, it must be held with dignity that preserves the rights of individuals. There has been a lynch-mob mentality at times.

Michael Noonan, the former Fine Gael leader, said he was willing to chair a Dail inquiry.

The government believes that a constitutional amendment is required to allow a Dail committee to subpoena witnesses and to make negative findings against individuals.

2

And I’m coing home now
It’s been so long now
Gonna get there somehow
Praying you’ll be there
And I’m coming home now
it’s been so long now
Gonna get there somehow
Praying you’ll be there

3

[quote=“Flano”]And I’m coing home now
It’s been so long now
Gonna get there somehow
Praying you’ll be there
And I’m coming home now
it’s been so long now
Gonna get there somehow
Praying you’ll be there[/QUOTE]
Making fun of Stephen Gately. The Pride of Sheriff Street. Sicko.

4

Eh, what?

5

[quote=“Flano”]And I’m coing home now
It’s been so long now
Gonna get there somehow
Praying you’ll be there
And I’m coming home now
it’s been so long now
Gonna get there somehow
Praying you’ll be there[/QUOTE]

;):wink:

6

AIB cronyism but sure what the hell

http://www.rte.ie/business/2010/0120/aib.html

AIB had shortlist of five for CEO’s job
Wednesday, 20 January 2010 18:25

Documents released to RT News under the Freedom of Information Act show that out of a shortlist of five candidates, AIB chose one of its own executives to take the top job.

The other four contenders for the post of chief executive were from outside the country. The documents also show the level of close contact between the bank and the Department of Finance at the time.

Reckless lending pushed the banks to the brink, which resulted in record losses and huge injections of state money. The Government and the public demanded a clear-out of those at the top, leading to a hunt last year for a successor to AIB’s Eugene Sheehy.

Documents released to RT News show that AIB Chairman Dan O’Connor told the Department of Finance that a shortlist of five potential chief executives had been drawn up, four of which were external candidates. He also said that one banker from Australia was flying in for two days of interviews while two London-based candidates would be interviewed there.

One final candidate, described by Dan O’Connor as ‘very strong’, was flying in from the US.

AIB decided to appoint ‘inside man’, Colm Doherty, who was then head of the bank’s Capital Markets division. The Government was unhappy with this choice and an announcement was held back.

Another email from AIB to the Finance Department said that Dan O’Connor and deputy chairman, David Pritchard, would meet Brian Lenihan in the Department on October 7 to discuss the new CEO.

They agreed a compromise solution to split the role of chief executive into an executive chairman and a managing director.

Another document reveals that one week before AIB publicly announced this a Department official suggested that AIB stress that Dan O’Connor would ‘personally oversee the process of restructuring the management team and ensuring the external bias was delivered on’.

AIB today again defended its decision saying the recruitment process was exhaustive and independently assessed. The bank said that Colm Doherty was selected because he emerged as the best candidates.

However, the extent of the shortlist raises further questions as to why an outsider was not chosen as the Government had wanted.

7

The thing this crisis is really laying bare is the reality of who pulls the political strings in this country. The best the government can do is beg the banks to make it look like they’re are dictating terms to them. The notion that the crisis would somehow weaken the financial sector is fucking laughable at this stage.

8

http://breakingnews.iol.ie/news/ireland/govt-to-relax-rules-on-payment-of-minimum-wage-443586.html

Govt to relax rules on payment of minimum wage
26/01/2010 - 18:07:38

The Government is to allow the minimum wage not be paid in certain sectors of the economy.

Legislation is to go through the Dil that will allow an “inability to pay” clause be invoked in certain industries such as catering, hairdressing, retail and agriculture sectors.

The Government said it will only be allowed happen when the majority of workers consent to it and the accounts of the business prove that it is in financial difficulties.

Labour Affairs Minister Dara Calleary said the Government is responding to the economic crisis and the move is not aimed at driving down wages.

9

http://www.tribune.ie/news/home-news/article/2010/jan/31/arms-firms-lock-on-to-irish-tax-breaks/

Arms Firms Lock On To Irish Tax Breaks
International weapons firms with virtually no presence in Ireland are using the state’s low tax rate to base off-shore companies that funnel billions in profits. Yet the state hardly benefits at all. Mark Hilliard and Ken Griffin report

FIVE of the world’s top arms manufacturers are using Ireland and its low tax rates to base off-shore companies which hold billions of dollars in assets. A Sunday Tribune investigation has found that none of the defence contractors in question pay any significant tax to the state and between them employ just two people.

The Irish subsidiaries all have their addresses in Dublin solicitors’ offices and have been described as “mere front operations” by a leading international tax expert.

The companies in question – Boeing, BAE Systems, Thales and Raytheon (working jointly) and United Technologies Corporation (UTC) – make some of the world’s most controversial and feared weapons systems.

These include Britain’s nuclear submarines, Apache, Black Hawk and Chinook helicopters, F15 Strike Eagles, missile defence systems, fighter bombers and a range of other modern weaponry…

10

Martin defends embassy spend

Minister for Foreign Affairs Mícheál Martin has defended a €4.4 million refurbishment of the Ottawa residence of the Irish ambassador to Canada.

Mr Martin’s comments came on foot of a report in a Canadian newspaper describing the extent of the development.

“The embassies play a very key role actually, both in helping to win inward investment and in supporting the work of Enterprise Ireland and IDA by utilisation of the embassies for economic purpose,” Mr Martin told RTÉ’s This Week programme.

It was reported in the Ottawa Citizen that the CAD $7 million development was the largest residence ever built in the Rockliffe Park area.

The paper said the residence featured “an oversized wine cellar, hobby area, data room, recreation room, study, library, gymnasium with a green padded floor, two kitchens including a commercial-sized operation, a chef’s office, art gallery and what appear to be five fireplaces, including a stone-plated monster in the living room with the capacity to kick out enough heat to warm an average-sized house.”

A construction worker was quoted by the paper as saying: “All that’s missing is a throne for Caesar”.

Was listening to an interview with a Canadian journalist there and he was saying that it’s become something of a running joke in the Canadian media. He was saying that they don’t care what the Irish do with their money but they can’t understand it either. There is no significant trading and/or diplomatic relationship between Ireland and Canada that would come anywhere close to justifying this kind of mansion.

Your man was saying that there’s a tradition in Ottawa of the ambassadors being quite social and hosting lots of events and dinners and so on. He said that the Irish ambassador has never been heard of and has never even bothered attending these events nevermind hosting them.

What’s worse is that this has been given priority status by the government, ahead of hospital ward refurbishment, special needs rooms and others.

11

What I want to know is: Is millions of euro of taxpayers money being spent on buying vast quantities of Ferrero Rocher, and where is it being stored? I have exquisite taste and I want that Rocher now.

12

http://www.irishtimes.com/newspaper/frontpage/2010/0306/1224265713249.html

Top Irish businessman rails at ‘intertwining with politics’
FINTAN O’TOOLE

ONE OF Ireland’s most successful businessmen, Niall Fitzgerald, has told The Irish Times he did not feel that he could have pursued a business career in Ireland without compromising his personal principles.

Mr Fitzgerald left Ireland in 1970 and went on to become chairman and chief executive of the giant conglomerate Unilever and chairman of the global media agency Reuters.

In an interview published today, Mr Fitzgerald suggests that “many people in domestic Irish business succeeded because they were intertwined with politics” and that “unless I was prepared to engage more directly with politicians . . . and at some point be ready to compromise on my own principles, that that would restrict my abilities to develop a business career in Ireland”.

Mr Fitzgerald is critical of what he calls the “claustrophobia” of Irish business. He says “that very intimacy, the knowledge that you can take one small envelope and write all the names that matter on the back of it” militated against independent jjudgment and high ethical standards, contributing to the current crisis in the Irish economy.

Recalling a dinner last summer with friends who had served on the boards of Irish banks, Mr Fitzgerald (himself a director of Bank of Ireland during the 1990s) says he posed a question: Were they aware of the risks that were being taken and thus “complicit with the recklessness”? Or were they unaware of what was going on and thus failing to discharge their responsibilities as directors? The question, he says, prompted a “very ferocious conversation”.

Mr Fitzgerald is also critical of the argument that banks must continue to pay very high salaries to retain senior managers. “You mean, these terribly valuable people who either didn’t understand the risks they were running or understood them and continued anyway without thought for the consequences? You know what? I could do without those valuable people.”

He also criticises high-level business people and bankers who are going into exile in tax havens such as Switzerland. He is, he says, “deeply sad” that some seem obsessed with “how you avoid at almost any cost to yourself and your family being a supportive member of the wider society in which you live”.

Mr Fitzgerald expresses concerns about the ability of those in positions of power to take responsibility for what has happened. “If the leaders of a society are not prepared to hold themselves accountable or there are not the institutions which are sufficiently independent to hold them accountable, then I think you have a very serious problem on your hands.”

13

Money for me money money money.

14

http://www.independent.ie/business/irish/nama-board-get-pay-increase-of-up-to-70pc-2096957.html

[size=“4”]NAMA board get pay increase of up to 70pc[/size]

By Patricia McDonagh

Friday March 12 2010

National Assets Management Agency (NAMA) board members have received a hike in salary – despite being less than three months in the job.

Finance Minister Brian Lenihan yesterday confirmed he had approved a new fee structure for the nine-strong board in light of their increased workload.

The board’s chair, former Revenue Commissioner boss Frank Daly, will receive €170,000, a 70pc increase on his original pay packet of €100,000. And the team of ordinary members will receive an annual fee of €50,000, rather than the €38,000 first proposed.

The board, which comprises of six ordinary members, two ex-officio members and one chairperson, were appointed by Mr Lenihan in December

They have responsibility for shaping NAMA and will decide the future of developers, ranging from household names to small-time developers.

Besides Mr Daly, the ordinary members of NAMA’s board are former AIG official Eilish Finan, former Bank of Ireland board member Michael Connolly, bank director and auditor Peter Stewart, insolvency expert Brian McEnery and former Fingal county manager Willie Soffe.

They will be joined by member International Monetary Fund official Steven Seelig in May.

  • Patricia McDonagh

Irish Independent

15

Fianna Fail, what a Party. Thank God we have them.

16

Not new but cheeky enough to warrant a mention here if we’re keeping a log:

http://www.herald.ie/national-news/hanafins-mum-makes-compo-claim-after-she-falls-in-leinster-house-1624065.html

Hanafin’s mum makes compo claim after she falls in Leinster House
Monday February 02 2009

http://www.herald.ie/multimedia/archive/00270/0202_hanafins_l_270106t.jpg

One of the biggest critics of the compensation culture, Minister Mary Hanafin, has refused to comment after her mother won damages follwing a fall at Leinster House.

Ms Hanafin’s mother has settled a personal injuries claim against the State after the fall while on a visit to Government buildings in 2007.

Mona Hanafin brought the case in late 2007, naming the Taoiseach, Ireland and the Attorney General as defendants in her claim.

It was settled out of court for an undisclosed amount on January 22.

Ludicrous

The claim arose nearly four years after Mary Hanafin, then the minister for education, hit out at an emerging compensation culture in Irish schools.

“Children will run, children will fall and children will hurt themselves,” said Ms Hanafin, who is now the Minister for Social Welfare. It was “ludicrous” that some schools were introducing no-running policies in the playground due to fear of litigation, she added.

After several adjourned court dates, Mona Hanafin’s action was settled by her Leixlip-based solicitors Paul Kelly & Co.

The extent of her injuries is not known.

A spokeswoman for the minister told the Herald the Fianna Fail TD did not make any comment at all on the claim.

“The minister did not make any comment, just that it’s a private matter for her mother,” she added.

Mona Hanafin is a devoted follower of Padre Pio.

She supported the construction of a community college in Athy, Co Kildare, last year.

Speaking on RTE radio, she said she would pray to St Pio to ask him to expedite the construction of the school.

In 2005, Mary Hanafin said parents should not look for others to blame if their child falls.

“There is absolutely no reason why there should be a ‘no-running’ policy in schools,” Ms Hanafin said.

“Parents are going to have to realise that if they want their children to be able to lead normal lives, it is not always someone else’s fault if they fall,” she added.

Compared with other countries, Ireland ranks near the top of the litigation league table with the number of insurance claims made for personal injury coming close to levels seen in the US.

Since 2002, there has been a decline in the number of cases against the state.

Claims against employers have fallen by 88pc, and personal liability claims have dropped by 58pc.

At the time, the State Claims Agency was dealing with 2,470 employer liability/public liability/ property damage claims, which, it was estimated, could cost the State €115m.

17

Lazy journalism by the Hearld there. No details of her injury, no details of what compensation she received, no details of the incident

18

[quote=“Fran, post: 429106”] No details of her injury
[/quote]
There was no injury.

19

She refused to disclose details of the injury or settlement at the time.

Subsequently revealed that she got 62,500 (roughly half were costs). She fractured an arm. That’s an awful lot of money to take off the state for a fractured arm.

20

it’s well in line with the book of quantum rocko http://www.injuriesboard.ie/eng/Estimator/#shoulder

I’d be wondering though, how come this never went to court, would be interesting to get your hands on the pleading in this case, would’nt be too hard as it’s not covered by the in camera rule. was it settled cos it was hanafin’s mother or was it settled because the state was negligent