Green Party, donations, anti-corruption policy…

Here’s a Green Party press release that just arrived in the inbox. It’s headlined “Days of the corrupt politician are numbered – Ban on corporate donations will help clean up politics for good”…

Green Party TD for Dublin North and Justice spokesman Trevor Sargent has welcomed the latest progress in relation to investigations into the allegations that money was paid to politicians in return for land rezoning votes during the 1990s.

… “There is still some way to go yet, but no person who either gave or received a corrupt payment should be let off the hook for their shameless disregard for sustainable planning and development.”

Deputy Sargent concluded: “It is for this very reason that the Green Party in Government is working to bring forward an immediate ban on corporate donations to political parties. This ban is not just in regard to Government parties either. It is common knowledge that both Labour and Fine Gael accept corporate donations to support the funding of their respective parties and their elections.”

Firstly, all the councillors were from Fianna Fáil. Fianna Fáil continue to accept corporate donations. No mention of that in the press release.

Secondly, the alleged payments were not donations. Does Mr Sargent believe the alleged payments would not have been made were a ban on corporate donations in place at the time? Does Mr Sargent really believe the people allegedly involved would have taken heed of the proposed law were it on the books?

Thirdly, Mr Sargent’s party is in Government with Fianna Fáil who only two days ago applied a whip to its members to reject the Lost at Sea report from the Ombudsman. The report raised serious issues about the ‘maladministration’ of FF TD, Frank Fahey, when he was a minister in the department of agriculture. Where was Mr Sargent on this matter?

Back to donations; as I have said time and again; our current system would work well if the disclosure thresholds were simply lowered or removed so that details of all donations were made public, not just the tiny proportion declared currently. A ban on corporate donations will simply see donations come through other, less public – perhaps less legal – means.

As the Council on Corruption in Europe (GRECO) has said time and again for the last eleven years – repeat, eleven years – all political parties should be forced to publish financial accounts. Ireland has been continously criticised for not legislating for that by the Council. Just last January GRECO published a report on Ireland. In an unusual move our own Standards in Public Office Commission explicitly stated the Government should implement the GRECO proposals.

The Government – led by Fianna Fáil, with whom the Greens are now in office, for the whole period – has ignored them consistently. Mr Sargent, when will the GRECO recommendations be acted upon?

By-the-bye; GRECO does not recommend a ban on corporate donations.

Still, if the Greens are going to do it, they should get on with it. They’ve been issuing pressers on this in-the-works legislation since entering office.

FOOTNOTE: On the topic of the Green Party and corruption; yesterday John Gormley announced that the era of bad planning was over. Just like that.

Green Party leader John Gormley said this evening he was confident the era of bad planning had come to an end.

Speaking in Downpatrick at the AGM of the Northern Ireland Greens, Mr Gormley said he had “noted with interest” the announcement yesterday evening that corruption charges were being brought against four former Dublin City councillors.

“I am reminded of the episode where one of those charged, former councillor and senator Don Lydon, put my colleague Trevor Sargent into a headlock in the chamber of Dublin County Council, as Trevor highlighted payments to politicians involving land zoning,” he said.

“Then as now, the Green Party was a solitary voice against bad and reckless planning, while councillors from Fianna Fáil , Fine Gael, Labour and Sinn Féin – at the behest of developers – rezoned as much of our countryside as they possibly could.”

… That comes two weeks after this press release was issued.

Green Party Senator Niall O Brolcháin has lashed out at rezoning councillors on Galway City Council, claiming that they have learned nothing at all from the property crash.

Following a decision to rezone over 20 acres of land in various locations across the City to commercial and industrial use, Senator O Brolcháin said: “Councillors are still rezoning land to feather the nests of individual property developers and speculators – indeed some of the Councillors are developers themselves and have been forced to declare conflicts of interest in the past.

“I would commend the Councillors who have stood firm against this rezoning, which was carried out against the advice of the acting city manager and senior planners. The current mayor went so far as to use his casting vote to rezone one of the most controversial sites on the Tuam road…

Doesn’t seem like the era has ended to me. Still, you’ve got to commend O Brolcháin for publicising it. I suppose you can’t legislate for… err, idiocy, let’s call it this time. But “then as now” is pretty much dead right.

Well I'll be… Councillors charged with corruption

Via Conor Pope on Twitter

The Irish Times: Former Dublin City councillors Tony Fox, Colm McGrath, Sean Gilbride, and Don Lydon charged with corruption.

More details soon, I’d expect.

UPDATE: Bit more context. All deny it.

Lydon is the guy who put Trevor Sargent in a headlock in a panic after Sargent waved a cheque from a builder in the air at a council meeting and asked “who else got one of these?”

He went on to become a Fianna Fáil senator.

Gilbride was an unsuccessful Fianna Fail general election candidate in 1987 and and 1989. He was a councillor in Balbriggan. Here’s a 2006 report from the Indo on the Mahon Tribunal hearings

Former FF councillor Sean Gilbride took a career break from his teaching job to canvass for the Quarryvale development and also for a seat in the Dail, the Mahon Tribunal heard.

Developer Owen O’Callaghan paid him IR£15,500 for his efforts but the bill was never invoiced to Mr O’Callaghan’s company, Riga.

Yesterday Clare Cowhig, the auditor who prepared the accounts for Riga, told the tribunal that she had not looked for an invoice from Mr Gilbride.

She had been told by Mr O’Callaghan’s business partner, John Deane, what this IR£15,500 was for and accepted it without an invoice as the amount was small in the overall context.

But tribunal counsel Patricia Dillon put it to her that if she was prepared to accept the word of a director in the absence of an invoice for the payment to Mr Gilbride, then it was conceivable this could be done in relation to other items in the accounts.

A corrupt payment of €1,000 to Mr Gilbride was also included in the list of charges against disgraced former Fianna Fáil press officer and lobbyist, Frank Dunlop.

Tony Fox was a Fianna Fail councillor in Dundrum. He was removed from the ticket as a candidate in the recent local elections by party headquarters following the charges against Dunlop. He ran as an Independent and won a seat in DL-Rathdown.

Frank Dunlop described Colm McGrath as Mr Insatiable according to this December 2000 Indo report…

FORMER Fianna Fáil Councillor Colm McGrath, the man dubbed “Mr Insatiable” by Frank Dunlop, is now alleged to have received at least £60,000 in payments to assist in rezoning.

The Flood tribunal was told on Friday that he received £30,000 in cash to assist in the rezoning of part of one of Europe’s leading breeding farms Airlie Stud in Lucan from agricultural to residential lands in 1993. The payments followed persistent demands by McGrath, who originally wanted £50,000 in cash from Sonja Rogers widow of Captain Tim Rogers, renowned thoroughbred breeder, former aide de camp to Winston Churchill and a close friend of Charles Haughey.

He ran in the recent local elections as an independent but failed to win a seat.

Amazing how these things happen on a Friday afternoon, isn’t it?

Quotes of Brian Lenihan

Periodically updated as per submissions. Add to the post by submitting it via the comment box below or emailing them to mark[@]thestory[.]ie (remove the brackets). Please provide a link to cite your source.

Updated in November 2010 here, which is the post cited by Vincent Browne in his Irish Times column.

Quotes from Brian Lenihan since the bank guarantee:

On Breakfast with Newstalk, April 26 2010.

First of all, that’s the position in 2009, Eurostat hasn’t decided it yet, that’s our assesment of how they will decide it, we’ll still argue the toss with them. We have to deal with 2010 yet, but let’s assume that you’re right for a minute and that all the €8bn has to be added on in 2010. Let’s assume that. We won’t be borrowing the money, we’ll be borrowing the money over a period of ten or fifteen years. We’ll actually be upfronting – in accountancy terms – the figure, but we will not in fact be borrowing… – April 26 2010.

Also on Breakfast with Newstalk

Now that I’m the shareholder in Irish Nationwide I will clearly ensure that whatever money is owed by Mr Fingleton is paid by Mr Fingleton. – April 26 2010.

Also on Breakfast with Newstalk

BL: No, no, listen, listen. This not good for the country and it’s inaccurate. If next year we’re obliged to include the €8bn, the €8bn will not actually be borrowed next year the device of the promissory note means we borrow…

Ivan Yates: No, I know the promissory note is over ten years. You’re missing the point…

BL: No you’re missing the point! This is an accounting device! This is not real borrowing! What the markets look at is real borrowing. Not accountancy devices… – April 26 2010.

Speaking to media…

“The decisive and bold steps we have taken are not popular; and the honest and full disclosure by the Government and its agencies of the appalling mess we have uncovered within our banks has shocked the nation,” Mr Lenihan told the Dail.  “But I do believe that there is recognition among the citizens that the measures we have taken are necessary. And I believe the work of NAMA in cleaning up the banks’ balance sheets and forcing them and their borrowers to face up to their losses is winning the respect of the public.” – April 21 2010,  Irish Independent

“One of the good things about the steep discount, averaging 47 per cent, is that the residential property market will now be stabilised at a realistic level… You can now buy in confidence that the price is realistic.” – April 4 2010, Irish Independent

[Submitted by CO’D]:

The Financial Regulator has advised that all the financial institutions in Ireland will continue to be subject to normal ongoing  regulatory requirements. This very important initiative by the Government is designed to safeguard the Irish financial system and to remedy a serious disturbance in the economy caused by the recent turmoil in the international financial markets. As far as the question of ‘moral hazard’ is concerned, it will be a priority for the Government to ensure that the highest regulatory standards and standards of corporate governance apply in all of the institutions concerned including in relation to lending practices to safeguard the interests of taxpayers against any risk of financial loss. –Department of Finance statement, September 30 2008

[Submitted by CO’D]: During Dáil debate on credit institutions and financial support,

Olivia Mitchell (FG): We need to see the terms and conditions to know what will happen with regard to these people. Is there any requirement for the banks to restructure their loans? Will they be allowed to make a massive number of repossessions and have fire sales, driving house prices down further and sending the economy into even deeper recession? Has the Government any plan to deal with this?

Brian Lenihan: This is the plan.

Olivia Mitchell: […] However, we need a return to the banks of old — to the image we had of them as being dull, staid, boring, cautious and careful. We no longer have that image. What is the Government’s plan to create the conditions that will ensure this happens? What will happen to restore confidence in the banking system? If we do not restore confidence in the banking system, what the Minister is doing now——. I do not know what the Minister is laughing at.

Brian Lenihan: I am not laughing. I am allowed to smile. – October 1 2008

[Submitted by DC]: As reported by Simon Carswell in The Irish Times…

MINISTER FOR Finance Brian Lenihan has said the bank guarantee scheme was “a necessary first step” and “the cheapest bailout in the world so far”.

Mr Lenihan said the guarantee was “the cheapest bailout” compared with bank rescues in other countries, including the UK and the US, where “billions and billions of taxpayers’ money are being poured into financial institutions” – October 24 2008

Irish Times…

“We are not rushing into the banks without knowing precisely what the position is in those banks” – Nov 20 2008

During the Stabilisation of Public Finances debate, Dáil Eireann

In the context of any capitalisation the due diligence exercise will yield further information to enable us to do a far more precise identification of risk before we formulate policy on it. I would be reluctant to commit the taxpayer on any issue connected with risk without a full and definitive assessment of the risk in the institutions themselves and we must await this assessment. – Feb 5 2009

Following the publication of Anglo Irish Bank’s 2009 results. Minister Lenihan said he welcomed the increased scrutiny of Anglo as an opportunity to bring openness to the bank…

“which will ultimately allow us to draw a line under past activities”. “It is an opportunity for Anglo to employ a fully transparent approach to addressing the inappropriate activities that took place at the bank and provide comprehensive details to all stakeholders who deal with Anglo and who deal with Irish financial institutions generally.” – Irish Independent, Feb 21 2009

When challenged as to why he was not nationalising banks (at this time the State had already nationalised Anglo Irish Bank and taken a 25 per cent stake in Bank of Ireland and AIB).

“I do really want to scotch the idea that there are huge risks to the taxpayer in the valuation process because we are not nationalising these institutions.” – Irish Times, May 18 2009

Nama Bill, Dáil Eireann.

NAMA will ensure that credit flows again to viable businesses and households by cleansing the balance sheets of Irish banks. This is essential for economic recovery and the generation of employment. It will ensure that we avoid the Japanese outcome of zombie banks that are just ticking over and not making a vibrant contribution to economic growth. – Sept 16 2009

Nama Bill, Dáil Eireann.

I am not prepared to contemplate the establishment of an entity that has no responsibility or accountability to this House. – Sept 16 2009

Nama Bill, Dáil Eireann

Nothing in the NAMA legislation will result in more repossessions of family homes. – October 14 2009

On the nationalisation of Anglo, during a debate on banking regulation in the Dáil

This decisive step was taken to safeguard the interest of the depositors of Anglo Irish Bank and the stability of the economy. I want to assure the House that this decisive step was taken to ensure the new nationalised bank will collect all debts due from persons who owe moneys to the institution. – Feb 18 2009

On the housing market in 2008 in speech to Seaned Eireann.

However, what we do know is that the underlying demand for housing remains strong, driven by a relatively young population and continued inward migration. While we may experience a year or two of sub-50,000 completions, it is reasonable to expect over the medium term that annual completions will return to sustainable levels which will remain high by international standards, reflecting the strong underlying demand for housing in Ireland – May 14 2008

To the Irish Independent, on housing prices…

One of the good things about the steep discount, averaging 47 per cent, is that the residential property market will now be stabilised at a realistic level. You can now buy in confidence that the price is realistic.” –  April 4 2010

In response to written question from Kathleen Lynch

Taking account of the advice received the Government has proceeded with a comprehensive recapitalisation of Ireland’s two main banks and with the nationalisation of Anglo Irish Bank. The Government is also in discussions with the other covered institutions, Irish Life & Permanent, Educational Building Society and Irish National Building Society concerning their respective positions. – Feb 18 2009

In response to a written question from Arthur Morgan

The recapitalised banks have reconfirmed their commitment to an extensive credit package which will help to increase lending capacity to small and medium enterprises by 10% and to provide an additional 30% capacity for lending to first time buyers in 2009. The credit package also provides for a €100m environmental and clean energy innovation fund to be established by each bank. All the steps that I have outlined have been taken by the Government to ensure that the public interest is secured so that the financial system in Ireland meets the everyday financial needs of individuals, businesses and the overall economy. – March 26 2009

Written answer to Arthur Morgan

Our approach will facilitate a sustained flow of credit on a commercial basis to individuals, households and businesses in the real economy. – July 8 2009

When questioned on the delays in implementing Nama legislation on Morning Ireland

“We can’t have a lawyers’ bonanza and that is another good reason why we have to get this right.” – May 18 2009

Kicker; written answer to Joan Burton

Arthur Cox solicitors have been engaged by my Department since September 2008 to provide advice in relation to general banking matters including the Bank Guarantee scheme, the nationalisation of Anglo Irish Bank and the recapitalisation of AIB, Bank of Ireland and Anglo Irish Bank. The company was paid €1,628,024 in 2008 and €2,254,263 has been paid to date in 2009. The sum of €5.4 million has been allocated for legal advice for 2009 and an estimate of €3 million has been set aside for legal advice in 2010.

PriceWaterhouseCoopers was retained by the Financial Regulator in late 2008 to assist the Financial Regulator with a review of the financial and capital positions of Irish banks and to enable the Financial Regulator to advise the Government on what action needed to be taken. The work undertaken involved an initial high level assessment of the capital and liquidity levels of the institutions, stress testing of the institution’s loan portfolios over a three year period, and review the valuation of properties held as collateral against the main property loans.

The total fees paid by the Financial Regulator to the company in respect of the work was €3.8 million, which has been completed. In addition, the Financial Regulator has paid €0.84 million to Jones Lang La Salle for financial and property consultancy services in relation to the Bank Guarantee Scheme.

The National Treasury Management Agency paid a total of €7.3 million to Merrill Lynch for investment banking advice up to 30 June 2009. Following a competitive tender process in July, Rothschild have now been awarded the contract for investment banking advice. The NTMA has also retained an economist however the terms of his contract with the NTMA were agreed on a confidential basis. In addition, following a competitive tender process, the NTMA engaged HSBC and Arthur Cox to provide advice in relation to NAMA. – Sept 22 2009

NOTE: I’ve gone through the Dáil record and archives of the Times and Indo, but haven’t listened to radio or TV interviews. If anyone has a bit of time to go back and listen to a Morning Ireland/Prime Time/The Last Word/Whatever interview… t’would be useful.

* a word members of our Government like to use when scripting excuses for the negative outcomes that result from badly implemented policy or regulation. Usually follows “unforeseen”.

Kennedy arrested by Criminal Assets Bureau

I admit to being pleasantly surprised on seeing this headline in the Irish Independent, especially since there isn’t much to be gained publicity-wise from it (as opposed to the political benefits of a Seanie Fitz arrest).

Multi-millionaire businessman and property developer Jim Kennedy was in garda custody last night after officers arrested him for questioning about corruption and bribery allegations.

The 63-year-old man was detained by officers from the Criminal Assets Bureau (CAB) — which has sought to question him for the past seven years.

Kennedy has since told Gardai he felt unwell in custody and been brought to hospital.

It is alleged Kennedy paid Frank Dunlop, the disgraced former Fianna Fáil press secretary and lobbyist, to bribe councillors in Dun-Laorghaire to rezone agricultural land in Carrickmines as industrial. The land is owned by Jackson Way, property company which is linked to Kennedy and an Isle of Man based solicitor, John Caldwell. The rezoning immediately raised the value of the lands from €7.9m to about €60m.

Any sale, transfer or disposal has been frozen by the courts since 2006. After interviewing Dunlop and county councillors, CAB officers provided an affidavit to the High Court stating they believed Kennedy and Dunlop had an agreement that Dunlop would receive the commercial value of one acre of the land (c. €60,000) if they were ‘successfully’ rezoned.

Both Dunlop and Goerge Redmond, the former Dublin assistant county manager, have served time on charges relating to corruption… maybe one day we might get on to the politicians? Ye’ know, the lynch-pins of the whole scheme with the blatant corrupt actions?

For the record; I reckon nothing much will come of the Kennedy arrest. Could be wrong, could be wrong.

Any news on that lobbyists register that you think will make a difference, dear ol’ Green Party?

Politico.ie database on national representatives

Malachy Browne of Politico.ie has developed a useful and welcome database of national representatives. It contains details/profiles for all TDs, senators and MEPs and takes updates from KildareStreet.com, Google News, the Magill and Village archive, and the individuals’ Facebook and Twitter pages.

Excellent stuff. Only thing I’d question is naming the salary and expenses section ‘The Gravy Train’. But who am I to question cynicism… Very nice work, Mister Browne.

Digest – October 18 2010

Alri’ boyez and gurrels… The new Monday Digest as promised.

HOE’UM

Gerard O’Neill on the economic impact of declining marraige rates.

John Naughton; Twitterphobia and the mainstream media.

Read this by the inspiring Mark Pollock; undressed and smiling again.

Top journalist spun by continuous repeatition of government claim. Karl Whelan gets the nuance.

Mark Davenport of BBC NI on a political session of competing insults.

Ken Foxe on a trip Noel Dempsey took to London on the government jet

When I sought details of what Mr Dempsey was doing in London under the so-called Freedom of Information Act, all references to the meeting were deleted from the records.

Access to them was refused under a variety of different grounds of the FOI Act, chiefly relating to ongoing government deliberations and the argument that it might indicate a government position.

The Department of Transport – which in my personal experience has a particularly severe approach to Freedom of Information – thus censored the documents in the “public interest”.

[…] He arrived at the Embassy from the Kensington Hotel, had a 90-minute meeting, was collected and headed back to Dublin on the government jet.

The Minister was accompanied by his Private Secretary Veronica Scanlan, who is the decision maker on this Freedom of Information request.

It is nice to know that Ministers can now use the government jet, run up a bill of €23,000 in the process, and then simply refuse to give an explanation of what they were doing.

This, at least in my experience, is an unprecedented situation

Documents are there too.

P O’Neill; You can’t lock up and entire bank, can you?

WURRELD Continue reading “Digest – October 18 2010”

"Empty totems of the now laughable notion of justice"

Letter in Saturday’s Irish Times

A chara,

I write to voice my concern about the future of this country. I am sitting on the steps of the Department of Justice & Law Reform, the sun is beating down on my shoulders and I write to expel a dark thought from my mind. What is to become of the disenfranchised generation of Irish citizens whose future happiness and prosperity in this country has been cast in great black shadows by the criminal activities of our financial institutions and the gross mismanagement of our national affairs by our trusted Government?

Like so many other young Irishmen and women, my partner and I have decided to leave Ireland to live and work in another country. I came to the city today to prepare some things for our trip and to say goodbye to the capital for a while, to soak in some of her unique flavour before departing for Perth in Australia. What is it that makes Ireland a special country? What are the deepest moral values that are the foundations of Irish society? As I walk, thinking about Minister for Finance Brian Lenihan’s recent announcement of the country’s national debt (death?) I was deeply concerned not that I no longer knew what this core moral value might be, but saddened to find that I no longer care.

Seemingly, the woeful economic state we find ourselves in is merely a symptom of a far more threatening problem – a spiritual or existential crisis at play in Irish society. My own sense of moral apathy makes me think a deep wound has been inflicted by the bankers’ greed and it is not in our pockets but sadly in the collective heart of the Irish people. We can endure the toxic financial wreck that is Nama’s balance sheet, the grossly unfair debt saddled so abruptly on honest, hard-working tax-payers.

We cannot endure however, the sheer sense of injustice and the total loss of moral law at the filthy hands of these so-called rogues and sleeveens (it is equally disheartening to see we have had cause over the years to establish a colloquialism to best describe such recurrent characters in Irish society).

An example has been set by the leaders of this country that their selfish and cynical behaviour is an acceptable discourse in modern Ireland. Our potential to act meaningfully and righteously in this society has been shrouded in this cynicism by the greedy, ignorant brutes that head our banks and by the lacklustre unimaginative politicians that sit in our Government offices.

As a young able man I am ashamed that my chosen course of action is not violent protest (there should be rioting in the streets outside Dáil Eireann and Anglo Irish Bank); rather I choose to leave the wreckage – feeling as if a bully has just entered the playing field, burst the ball and walked away.

Sitting outside the Department of Justice Law Reform, whose steps feel like empty totems of the now laughable notion of justice, I think that the task at hand is not to set the country’s financial institutions back on track. It is to inspire an entire generation of skilled workers leaving our shores to return at some point to rebuild Ireland in the spirit of honesty and hard work, with a belief in our ability to live for the prosperity of others as well as ourselves. – Yours, etc,

BEN MULLEN,

Raheen Park,

Bray, Co Wicklow.

Guido publishes partial list of Anglo bondholders

Wexford-based blogger Guido Fawkes – who usually focuses on the goings-on in Westminister – has published what he says is “the list of foreign Anglo-Irish bondholders as at the close of business tonight.”

That’s a pretty refined sentence. He doesn’t mention if they’re senior or sub-ordinated, though you’d guess at sub. Nor does he say if there is a corresponding list of Irish-based bondholders, though you’d presume there has to be.

Also, it’s only €4bn of €30bn and many are funds probably running accounts for clients.

Still, it seems he has figures – some damn important context – for each one published too, so if you’re interested stay tuned there.

Of course TheStory would be interested in any similar information also! Props to Guido on obtaining the list assuming it stacks up.

Quinn, Russia and Ukraine

We have long been interested about the rather large investments the Quinn Group made in Russia and the Ukraine back in the day. Or not back in the day, depending on your viewpoint. Afterall, it was only last year, post Anglo nationalisation, that Mr Quinn was out in Kazan (yes that’s a Russian city you’ve never heard of), opening a warehouse/distribution facility. I wonder how it’s going? If you’re in doubt, here’s where the plant is:


View Larger Map

The Quinn Group were kind enough to offer us this hilarious video of the opening of the facility via YouTube. I do wonder who owes money to who in this case and if the taxpayer is at this stage involved, especially as Quinn/Quinn Group is the largest debtor to Anglo Irish Bank.

It is also worth noting that we pointed out the basic subsidiary structure some time ago. Quinn Assets Sweden AB is one of the Swedish subsidiaries of Quinn Group (Nedacin Limited (Cyprus) is a subsidiary of Assets Sweden AB. Nedacin has a subsidiary in Russia called Striotlend (стриотлэнд) . Striotlend was apparently used to purchase Russian assets.

Ukrainian assets appears to have been bought via Quinn Holdings Ukraine, which is a subsidiary of Quinn Holdings Sweden (AB). This Ukrainian website appears to report news that Quinn Sweden Holdings AB bought a 92.75% stake in Quinn Holdings Ukraine Ltd in April 2008, around the time the Anglo share price was falling, and the Anglo 10 were getting their act together. Quinn Holdings Ukraine paid upwards of $155m for two assets in Kiev in 2006.