Anglo Irish JCF LLP

Last week I blogged about Anglo Irish JCF 1 LLP, a company with an illustrious list of board members. However, following some searches I found something else that looked strange.

According to the Register of Members’ Interests 2006, Senator Feargal Quinn invested in a similarly named company. It was Anglo Irish JCF LLP (without the 1). It is a curious coincidence. So I contacted Mr Quinn about the declared investment asking him the nature of the investment.

Mr Quinn stated:

I’m glad you asked as I didn’t actually invest in it, it was a mistake on my declaration.

I sought further clarification on the nature of the investment and whether Mr Quinn had corrected the record.

I regret that I cannot clarify further for you as I don’t personally deal with my investments and I don’t know the background. In relation to changing the record, your request has drawn my attention to my error and I will now correct it.

Interesting.

DocumentCloud

We are pleased to be joining a rather illustrious list of document contributors, including the Huffington Post, the New York Times and The Atlantic, to the beta of DocumentCloud. I believe we are the first Irish contributors.

We have been using Scribd.com for third party document storage for some time, and while it has its uses, it lacks many of the journalistic features we need. DocumentCloud are adding features, and taking feature requests.

We will be testing DocumentCloud over the coming months, so you may see a switch away from Scribd.com.

Eurostat documents – Ireland

I’ve taken all of the letters and documents from the Eurostat website in relation to NAMA, and OCRd them for posterity. To make things a little easier for searching, I have combined a series of letters, and the results of two Eurostat visits to Ireland. There are some gems in the documents.

Euro Stat

One of my favourites is this one. In the appendix to the letter, under Risk Analysis, it says, my emphasis: (MV is Market Value)

There are two main linked areas of risk, which relate to uncertainty about the current and future state of the property market in Ireland and worldwide:

a) Prices will continue to fall below the purchase-date MV.
b) The adjustment factor applied to the MV to obtain the LTEV is too large, so that the market will not recover sufficiently to allow the assets acquired to be sold for at least the purchase price.

It is difficult to quantify the level of risk involved in (a) and (b) above. However, NAMA have been advised that, while there may be some short-term fall in MVs after assets are purchased, ‘based on capital values, the bottom has been reached in the US, UK and Europe’, and in Ireland ‘the market expects that the bottom may be reached in the last quarter of 2009 or the first quarter of 2010.’

Based on the available expert advice, NAMA and the Department of Finance have concluded that NAMA will be profitable over its expected 10-year lifetime, estimating its net present value at some €6 billion.

Eh, no. NAMA have locked in values at November 2009 levels, and prices have continued to fall since then. And in my opinion prices will continue to fall for another 18 months at least. But then back in 2008 when I was out taking photos of ghost estates a good 18 months before the media realised their import, and even before that whole Lehman Brothers thing, it was clear prices had a long way to fall, despite the best efforts of property shills telling us now was a good time to buy, and we were near a floor in the market.

And when many of the loans NAMA is taking on had no collateral to back them, 33% of them in the case of Anglo, then even the increase in the value of any lands or properties within NAMA won’t bring us a profit. It can only bring us a loss.

New details relating to Terence Wheelock case

On April 12 2004 MALE A was arrested on Séan O’Casey Avenue. On September 2 of the same year he made a statement to the now defunct Garda Siochana Complaints Board about his arrest. In his complaint he made a number of very significant allegations against several gardaí.

Most notably the details MALE A provided in his statement allege he was assaulted in a manner very similar to the alleged assault against Terence Wheelock.

The similarities in the two allegations are significant. Both MALE A and Mr Wheelock were arrested on Séan O’Casey Avenue within twelve months of each other. Both are of similar age. In both cases claims are made that the subject of the arrest was ‘roughed-up’ at the scene. In both cases the nature of the alleged attacks by the members of An Garda intensified once the subject had been brought to station. The Gardaí in both cases are alleged to have targeted the anal and lower back areas of the subject’s body, as well as other areas. Both cases include allegations that gardaí seriously assualted the subject in the station cells. Furthermore, one particular garda was involved in both incidents. All in all, the two incidents, as described by the complainants, are almost carbon copies.

The 2007 inquest, held in camera, into the death of Mr Wheelock and the recently published report by the Garda Ombudsman (proceedings also in camera) both vindicated the Gardaí. However, importantly, the complaint by MALE A resulted in several officers being found in breach of discipline. Some of these Gardaí, it was then decided, had breached discipline in a manner serious enough to warrant an appearance before a disciplinary tribunal.

All the information above is detailed in the version of the Ombudsman’s report supplied to the Wheelock family. This version differs in several areas to the one made available to the public earlier this months. I obtained the document via Ken Foxe and have photographed and OCRd the significant pages which have not been made public before today. There are other differences between the family and public versions but these are not noticeable on first glance. In coming weeks I’ll photograph every page and, with Gav’s help, stitch the images together to form a full electronic version of the family’s copy. I’ll then post it here for people to comb through. Unfortunately, this copy will likely also have to contain considerable redactions. Continue reading “New details relating to Terence Wheelock case”

Anglo Irish authorised signatories

During some deep Google searching I came across this curious document:

Certificate

Interestingly, the document is dated September 26, 2008, three days before the bank guarantee scheme. The document contains the signatures of Sean FitzPatrick, William McAteer, David Drumm, Natasha Mercer, and for the conspiracy theorists amongst you, a Brian Linehan (spelt that way). More likely an employee of the bank, though 🙂

DDDA Reports

We have obtained a copy of the three DDDA reports by Niamh Brennan from the Fine Gael press office. The reports have been scanned, OCRd and uploaded and can be searched or download from the interface below.

The reports run to 216 pages, this is the only soft copy available it is therefore possible (but unlikely) that some pages are misordered.

The details were first covered by David Murphy, Business Editor with RTE, this morning.

Fine Gael have accused of John Gormley of a cover-up over the reports. As per The Irish Times: “The reports deal with matters to do with finance, planning and the board’s reaction to these matters. [Fine Gael Deputy Phil] Hogan said the planning report raises questions over the status of planning permission for some of the most well known buildings.”

Amongst the main issues detailed in the report are revelations that the Irish Glass Bottle site was never formally valued. It was purchased by the DDDA and a number of developers and financial entities in 2006 for more than €400m but quickly fell drastically in value. Those involved included Bernard McNamara, who has sued the DDDA claiming they didn’t deliver on promises relating the deal. Sean Dunne was also involved and also took the authority to court over the now-near-abandoned Anglo site. He won his case.

Labour says the issues of corporate governance can be put down to, amongst other things, Anglo – which had an interest in the site through its loan portfolio – having two members of its own board, Sean FitzPatrick and Lar Bradshaw, sitting on the board of the DDDA.

Further issues are also covered relating to the DDDA granting planning permission for structures which could be considered non-compliant and the absence of value-for-money audits being carried out.

DDDAreports

Suspension of CIÉ employee remains in place after court finding

Interesting details available in a finding made by the High Court last week.

KEENAN – v – IARNRÓD ÉIREANN

Mr John Keenan is the plaintiff, he has taken a case against CIÉ/Iaranrod Eireann (hereafter referred to as CIÉ), at present he remains suspended with pay. He is a long standing Labour member, friend of Emmet Stagg and is being represented by Alex White. In the above case he sought “interlocutory injunctions directing Iarnród Éireann to allow the plaintiff to perform his duties… without interference; and restraining the defendant from taking any steps to remove him from his position”. In short, he asked the court to tell CIÉ to lift the suspension with immediate effect.

Mr Keenan was head of human resources when the incidents which give context to the judgement are alleged to have taken place. It should be noted that this judgement has not considered the allegations made by either side in the case, only whether or not the suspension should be lifted.

In October 2007 Mr Keenan was asked by CIÉ’s CEO, Dr John Lynch, to compile a report for the company’s Audit Committee. The report set out the progress made in respect of disciplinary charges issued in the case of an Iarnród Éireann employee, one of the subjects of the then on-going Baker Tilly investigation.

In the last sentence of his report Mr Keenan stated that the losses expected to be detailed by Baker Tilly would “be seven or eight digit sum”. This, he says, triggered “a very adverse reaction” from some in senior management.

[Mr Keenan] says that Dr. Lynch and Mr. Paul Kiely, the chairman of the Audit Committee believed that this aspect of the report jeopardised their positions and that he was told that he was stupid and should have known better than to suggest such high losses in writing to a Board sub-committee.

Mr Keenan continued directing the Cost Audit committee but says in December 2007 there was a direction given that no minutes be kept of meetings of a “steering group” on these matters and that nothing should be kept in writing.

He claimed to the court that at one point he told other members  of CIÉ senior management that Baker Tilly estimated losses could have been 12% of the CIÉ’s annual spend. He said the Chief Executive, Dr Lynch, argued that this estimate was outside Baker Tilly’s terms of reference and wanted it removed. Mr Keenan attempted to argue the relevance of the figure but, he says, Dr Lynch was unmoved. According to Mr Keenan the figure was then reduced to €2.5 million. That was around September of last year.

When published the Baker Tilly Report, as covered in some depth on this blog, detailed €2.6m in quantifiable losses, with a note that the team was “confident further unidentified losses exist within the company”. At the time Shane Ross estimated the true extent of the losses to be €9m.

It’s important, and I again wish to note, that none of the allegations made by either side are found correct or incorrect by the judgement about which I write in this post. They will be considered in a later case.

Mr Keenan also claims that on November 11 2009 the CEO, Dr Lynch, and Richard Fearns, the chief financial officer, relieved him of responsibility for the Cost Audit Unit. He says they did so as they wanted him “off the pitch”. Mr Fearns categorically denies this to be the case and says there was legitimate reason for the change. Mr Fearns believed the Audit Unit would be better handled by the finance section of CIÉ, not Human Resources, of which Keenan was in charge, as it was covering issues of financial irregularities.

It is accepted by both parties that there was considerable tensions between the two at this point.

On December 3rd Keenan was suspended from CIÉ for dereliction of duty. The reason given related to separate case which is now under judicial review in the Equality Tribunal.

The Equality Officer for that case had delivered findings on November 13th which were “very much averse to Iaranród Eireann”. They stated a female employee in the company had been harassed on gender grounds. There were clear implications made which could have damaged the reputations of both Mr Keenan and Mr Fearns.

Mr. Keenan says that having received it personally on 20th November 2009 (a Friday), he took the determination home with him and returned to work on the following Monday, 23rd November. He says that he then took a number of steps in relation to the determination, involving meeting with the Iarnród Éireann solicitor who had dealt with the matter (with regard to an appeal) and also instructed that counsel be briefed. The plaintiff says that he planned to brief Mr. Fearns on this issue at a meeting arranged for 2nd December, 2009. A full meeting however did not proceed as planned.

Mr Fearns contends Mr Keenan had ample opportunity to inform him of the findings and that by not ensuring he did so he was in dereliction of duty. He said due to Mr Keenan’s inaction there was a possibility that the company would be the subject of bad publicity for which it would be unprepared. Mr Keenan states this not to be the case, saying that the details of the cases are not made public for a month after the Equality Tribunal makes its findings.

Mr. Fearn deposes that he informed the plaintiff that he had a crisis of confidence in him as a H.R. Director as he had failed to tell him about this decision and that he should have known what a big issue this would be for the company. He says that he directed the plaintiff to stand aside from his duties with immediate effect, to go home and not to return to work until further notice. He was to continue to be paid his full salary. He was to collect his personal belongings and to hand him the keys of his office.

That was on December 3. Mr Keenan claims that the decision was disproportionate. He implies that the suspension was an attempt to silence him and that the CIÉ pair have been seeking to suppress information and acting in bad faith in dereliction of their duty to investigate alleged fraud.

However, after the meeting with Mr Fearns, Mr Keenan didn’t go home immediately. He returned to his office and made a number of phone calls. Mr Fearns claimed Mr Keenan indicated that he would return to work the following day despite being told not to. Mr Fearns then decided to seal Mr Keenan’s office, close his access to the internal email system and cut off his internet facilities. Security staff were later told – though Mr Fearns says, not by him – to ensure Mr Keenan didn’t return to CIÉ grounds. I’ve been informed that this included the posting of Wanted-style posters around CIÉ facilities.

The judgement says these decisions were “quite radical”.

The CIÉ representatives say following the December 3 incident Mr Keenan contacted employees who had been reporting to him and told them to access email correspondence and make copies. Mr Keenan said this was not “wrong” and that it was part of his duties. They say he procured access to the email account of the personal assistant of the Chief Medical Officer, Dr Declan Whelan, and that he may have authorised access to employee’s bank accounts. Dr Whelan accessing his assistant’s email account was a breach of trust. Furthermore, the defendent (CIÉ) claim Mr Keenan authorised the placement of a tracking device on an employee’s car. Mr Fearns called for an investigation in the matters and said the suspension should remain in place until complete.

Judge John Mac Menamin found that the suspension should remain in place. He didn’t find against Mr Keenan however. He said that allowing him to return to work would be wholly impractical as the level of trust between the the top brass in CIÉ and Mr Keenan had disintegrated completely.

The allegations which gave context to the case will be assessed at a later date.