Anger over pace of INBS probe

There is growing impatience with the pace of the investigation into the former Irish Nationwide Building Society (INBS), which was nationalised after a bailout of €5.4bn in 2010.

The Central Bank is currently looking into lending practices at INBS in the years leading up to its demise, but no decision has been made on whether further action will be taken by the Garda Fraud Squad or the Office of the Director of Corporate Enforcement.

The Central Bank said in a statement. “An investigation is being conducted under the Central Bank’s administrative sanctions procedure into historic lending practices at INBS. Until this has concluded, no decisions may be made as regards any future potential action. For legal reasons, including the bank’s confidentiality obligations pursuant to section 33AK of the Central Bank Act 1942, no further details can currently be disclosed.”

The Central Bank declined to comment on how much longer this probe would take.

Moreover, a government spokesman declined to comment on whether there was a policy to prioritise the investigation into the former Anglo Irish Bank. Three former executives from that bank, Seán Fitzpatrick, Willie McAteer, and Pat Whelan have been charged and will appear before the High Court in 2013.

Labour TD Michael McNamara said he has huge concerns about the lack of progress in the INBS case.

He attributed the slow pace of the investigation to inadequate resources at the Garda Fraud Squad. “I have spoken to members of the fraud squad and they will say openly that they are not properly resourced.

“We [the Labour Party] were elected to deal with problems like this and much more progress needs to be made. I am not happy that there are sufficient resources at the Garda Fraud Squad and I know my Labour colleagues are not either.”

Fianna Fáil TD Michael McGrath said the probe into INBS is taking too long and called on Finance Minister Michael Noonan to disclose the findings of two reports — conducted by Ernst & Young and McCann Fitzgerald — into INBS.

“I know the Central Bank is speaking to former executives at Irish Nationwide, but where it will lead, nobody knows,” Mr McGrath said.