'Cases to answer' over Anglo

The former chairman of Anglo Irish Bank Seán FitzPatrick and its former chief executive David Drumm have “prima facie” cases to answer in relation to their roles in certain controversial dealings at the bank, according to reports prepared by a special investigator.

The reports by the former Comptroller and Auditor General, John Purcell, were submitted to the Complaints Committee of the Chartered Accountants Regulatory Board on December 14th, and have now been forwarded to the board's Disciplinary Committee.

Mr Purcell found that Anglo's former finance director Willie McAteer and the former finance director at Irish Life and Permanent Peter Fitzpatrick also had prima facie cases to answer. The four men are chartered accountants.

Public hearings by a three-person Disciplinary Tribunal to be established by the committee are expected to be held around March or April of next year. Maximum sanctions of fines up to €30,000 and expulsion are available to the tribunal.

In relation to Mr FitzPatrick the special investigator said that in his opinion there were cases to answer in relation to his role in the temporary transfer of his loans from Anglo so that they did not appear in the bank's financial statements; his role in relation to transactions with Irish Life at certain dates in 2008; and his role in relation to a loan to Mr McAteer in 2008.

The special investigator decided he had no case to answer in relation to the provision of loans to 10 customers who bought shares in the bank.

In relation to Mr Drumm, Mr Purcell made findings to do with: the transfer of Mr FitzPatrick's loans and their non-appearance in the Anglo books; the transactions with Irish Life; his role in the amendment of the terms of loans to ten bank customers who bought shares in the bank; and his role in relation to loans to four key management personnel and in 2008 to Mr McAteer.

The special investigator decided Mr Drumm had no case to answer in relation to the provision of loans to the 10 customers who bought shares in the bank.

In relation to Mr McAteer, Mr Purcell made findings in relation to: the transfer of Mr FitzPatrick's loans and their non-appearance on the bank's books; the transactions with Irish Life in 2008; and his role "in relation to the appropriate disclosure of a loan" made by Anglo to him in September 2008.

Mr Purcell decided Mr McAteer had no case to answer in relation to the loans to the ten customers and the loan made to him in September 2008.

In relation to Peter Fitzpatrick, the special investigator decided there was a case to answer in relation to the Irish Life transactions with Anglo at key reporting dates in 2008.