FINE GAEL has challenged the assertion of a Minister of State that the Government is legally precluded from naming the 10 investors involved in the €451 million transaction to buy the shareholding in Anglo Irish Bank unwound by businessman Seán Quinn.
Dick Roche, Minister for European Affairs, said yesterday that Minister for Finance Brian Lenihan told him that, as sole shareholder of the nationalised bank, he had no right to receive information as to the identity of the 10 individuals. In a statement, Mr Roche also denied suggestions the Government was trying to protect or shield the identities of the 10 individuals because of potentially damaging political implications.
He said the requirement of confidentiality was laid down in the Central Bank Act 1942. However, Fine Gael deputy leader Richard Bruton said Mr Roche’s statement was a clear attempt by Government to “muddy the waters”. The public had a right to know the names of the “golden circle of investors”, and argued the Government did have powers under company law to seek their identities.
Mr Bruton said that, as the sole shareholder of Anglo Irish, the Government had, under the Companies Act 1990, the right to reveal the names of both present and past shareholders of the bank. He said the power stood even if those shareholdings were purchased through nominated accounts.
“Secondly, if these individuals are also creditors to the banks, and they default on loan obligations, then the State, as the bank’s owner, has the right to take proceedings.”
He said a third mechanism would also allow the identities to be revealed under the Freedom of Information Act.
“As for Minister Roche’s comments concerning the Central Bank Act [of 1942], this Act never anticipated the Minister for Finance being the sole shareholder of a bank.” The row came on the eve of a debate in the Dáil on a Fine Gael Private Member’s Motion on the banking crisis which calls for the 10 investors to be publicly named.
The Government’s emergency legislation to introduce the pension levy for public service workers will also be debated in the Dáil this week. The Seanad will sit all day on Friday to ensure the passage of the legislation through all stages by the weekend.
A Labour Party spokeswoman said last night the Bill needed amendments to prevent the 10 investors being eligible for tax relief arising from the transactions. “Taxpayers will be understandably outraged to discover that under Irish tax law, it is very likely that the 10 could get tax relief of over €80 million on the shares. Labour will be tabling amendment that would prohibit tax payout,” she said.
The chairman of the Oireachtas Committee on Economic Regulatory Affairs said he was writing to former financial regulator Patrick Neary requesting his attendance before the committee next week.
Fianna Fáil TD Micheál Moynihan said the committee wanted to know what information was available to Mr Neary about banks “managing” balance sheets.
He also said they wanted Mr Neary to comment on what he called the “unacceptable” financial package that was negotiated upon his resignation.
Mr Burton said he thought it unlikely Mr Neary would appear. However, he said there seemed no impediment to the chairman of the nationalised bank, Donal O’Connor, appearing before the committee.
