Articles led to bank U-turn and red-faced minister

THE two articles which won awards for Irish Examiner journalists at yesterday’s ESB National Media Awards ceremony in Dublin provided a major embarrassment for a leading financial institution and a senior Government minister.

Irish Examiner business correspondent Conor Keane forced the country’s second-largest banking group into a major U-turn with a story published last March about the Bank of Ireland.

The article highlighted how the bank had emerged as the major financial backer of a company involved in the distribution of pornographic magazines.

It showed the bank was involved in financing the €30 million acquisition by British company, Remnant Media, of a range of adult titles from the owner of the Daily Express, Richard Desmond. The magazines included such titles as Asian Babes, Readers’ Wives and Horny Housewives.

Although the Bank of Ireland initially declined to discuss its involvement with Remnant, the Irish Examiner story led to a threat by the National Women’s Council of Ireland to close its account with the bank because of its links to a publisher of pornographic material. The Conference of Religious of Ireland also raised its concerns about the bank’s role with Remnant as a result of Mr Keane’s story.

Under growing pressure following publication of the report, the bank announced a few days later it had pulled out of its loan agreement with Remnant.

It also stated it would conduct a review of its lending policies in recognition of the fact that some of its existing key account holders were concerned about the issue. The bank acknowledged it had received significant reaction and expressions of concern from many other customers about its loan arrangement with the British company.

Meanwhile, the award-winning article by Irish Examiner reporter and Young Journalist of the Year 2004, Michael Brennan, raised serious questions about the manner in which ministers could influence the allocation of capital grants to sporting organisations.

It revealed how Sports Minister John O’Donoghue had asked for a grant to be given to a rowing club within his Kerry South constituency in breach of departmental guidelines.

The funding allocation of €300,000 to Killorglin Rowing Club was made just before the general election in 2002, despite the fact the club’s application had received a score below that deemed suitable for grant approval.

However, the grant was authorised after Mr O’Donoghue (the then Justice Minister) wrote twice to then Sports Minister Jim McDaid to “look favourably” on the club.