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Morgan questions role of Government appointed directors at Anglo Irish Bank

21 April, 2010


Speaking in the Dail this evening on the Central Bank Reform Bill Sinn Féin Finance Spokesperson Arthur Morgan TD questioned why the two Government appointed Public Interest Directors on the Board of Anglo Irish Bank signed a set of Audited Accounts which indicated the bank had made a Pre Tax Profit of €784m when the dogs on the street knew there was a problem in this bank, a fact only confirmed some weeks ago when the Profit of €784m suddenly became a loss of €12.7billion.

The following is an extract from Deputy Morgan’s speech:

“Minister you appointed two Public Interest Directors to the board of Anglo and from 11 Dec 2008 they had been attending Board meetings of the Bank. Frank Daly was appointed Chairman of the Audit Committee of Anglo and Alan Dukes is now Chairman designate of Anglo. You nationalised Anglo on 15 January 2009. Now I was under the impression that both these public interest directors were there to be our eyes and ears in Anglo.

“Well if so I would like to know what they were doing in February 2009 when they actually signed, without so much as a murmur, a set of Audited Accounts for Anglo which indicated the bank had made a Pre Tax Profit of €784m. Now lest we forget the dogs on the street knew there was a problem in this bank, a fact only confirmed some weeks ago when the Profit of €784m suddenly became a loss of €12.7billion.

“People deserve to know how these Accounts were issued with the tacit approval of 2 Govt Appointed Directors, showing a Profit of €784m when clearly there was no such Profit. Furthermore Mr Daly’s role as Chairman of the Audit Committee in Anglo where he presumably had some interaction with the banks Auditors, Ernst & Young who issued an unqualified audit report, makes this all the more bizarre.

“But perhaps the most amazing contradiction in all of this is that Frank Daly, not long after signing a set of Accounts showing a profit that never existed, becomes Chairman of NAMA. And of course we all know what NAMA thinks of Anglos numbers – total rubbish.

“We must now ask, is it acceptable that an individual who as a Public Interest Director, signs a set of financial statements for a state body stating there was a profit when there wasn’t, then becomes chairman of another institution who takes an entirely different view of those same set of numbers, culminating in a €12b loss the following year.

“What purpose have these Public Interest Directors served? Do they contact you Minister every month with a set of Monthly Management Accounts to let you know how these businesses are doing? Do you talk to them? Did you talk to Frank Daly after he signed a set of Accounts in Feb 2009 indicating a Profit at Anglo Irish Bank? Did you believe him when or if he told you?” ENDS

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