An investigation focusing on the issue of inappropriate directors' loans at Anglo Irish is to be widened, it was announced today.
Last month, the Chartered Accountants Regulatory Board (CARB), the body established by the Institute of Chartered Accountants in Ireland (ICAI) to regulate its members, appointed former Comptroller and Auditor General John Purcell to examine issues surrounding the issuing of loans to establish if any of its members had breached the body's Bye-Laws and rules of professional conduct.
Mr Purcell has now been asked to investigate a number of other related issues including deposits made by Irish Life & Permanent through its subsidiary Irish Life Assurance to Anglo last year and the alleged provision of loans totalling €451 million to 10 customers of the bank to enable them to buy a number of the shares in Anglo held indirectly by Sean Quinn.
The performance of Anglo Irish Bank’s auditors Ernst & Young will also be examined by Mr Purcell.
Anglo lent its directors €255 million last year. Former chairman Seán FitzPatrick and an unnamed former director accounted for the bulk of these loans. Repayments during the year amounted to €115 million. The balance of directors’ loans at year end was €179 million.
