BOTH SEAN FITZPATRICK and David Drumm will face an accountancy watchdog in the new year. The former Anglo Irish Bank bosses will have to explain their transactions and lending practises at the financial institution.
Two other senior banking figures, Willie McAteer, who was finance director at Anglo, and Peter Fitzpatrick, who was finance director at Irish Life and Permanent, will also be called up to explain themselves. The recommendations were made by John Purcell, appointed special investigator into the situation which led to the nationalisation of Anglo-Irish by the Chartered Accountants Regulatory Board last year.
The Press Association says that FitzPatrick and Drumm have “cases to answer” according to the report from John Purcell, which was published today. Mr Purcell had been looking into the roles played by the four men in the transactions which appeared to mask the extent of deposits withdrawn from Anglo-Irish following the collapse of Lehman Brothers in the States in 2008.
Now Mr Purcell’s report has found that there is a prima facie case (where there appears to be sufficient evidence to proceed) against all four men in relation to short-term deposits from IL&P to Anglo in 2008. Those deposits made Anglo’s accounts look healthier than they were.
According to BusinessandLeadership.com Mr Purcell did not find a case against the four in relation to the loan taken by ten businessmen in order to buy Anglo shares. However, David Drumm will face a case for altering the terms of the loan.
The men will face a three-person disciplinary committee in March next year – and it could be held in public. Possible disciplinary measures that could be brought against them include a fine or being struck off the list of chartered accountants.
Meanwhile, RTE is reporting that the High Court has made a formal order today which will clear the way for David Drumm’s €1.2m house in Malahide to be sold. The order would allow the sale by the US Trustee overseeing Drumm’s bankruptcy in the States.