Taoiseach denies protecting 10 investors

TAOISEACH Brian Cowen has dismissed as a “juvenile conspiracy theory” claims he was protecting the golden circle of 10 investors who were given e300m by Anglo to buy bank shares.

In angry scenes in the Dáil, Mr Cowen clashed repeatedly with Fine Gael leader Enda Kenny on the issue and insisted he had acted at all times in the best interests of the taxpayer.

He also insisted that none of the Cabinet had been involved in the e300m deal in any capacity, saying it was an “internal bank matter”.

Mr Cowen once more said he did not know the identities of the 10 investors, and neither would he be seeking to find out. The matter was being investigated by the Director of Corporate Enforcement and the Financial Regulator, and it would be inappropriate for him to seek the names.

“In the same way, if someone went down to Fitzgibbon Street [Garda station] in the morning, and asked the sergeant in charge, ‘Can you give me the names of the suspect you have in relation to crime A, B or C that you’re investigating’, I wouldn’t be entitled to that either,” Mr Cowen said.

The suggestion that he was protecting these individuals was a “political slur” and “smear” which was “totally baseless” and “contemptuous”, he added.

However, Mr Kenny questioned why the Government was not prepared to pursue the 10 investors for the e75m in security they offered in exchange for the e300m of loans.

It was reported yesterday the bank would write off the loans in their entirety because of legal issues with the loan agreement. In response, Mr Cowen said Anglo had been nationalised so the bank could pursue “to the greatest possible extent” all liabilities and debts due to it. He said, however, that the Government would not interfere with the day-to-day running of the bank, raising the possibility the loans will be written off.

Labour leader Eamon Gilmore, meanwhile, recalled how Mr Cowen, as finance minister in 2006, had forced the Revenue Commissioners to reverse a decision to charge stamp duty on contracts for difference [CFDs]. CFDs are the high-risk financial investments through which businessman Sean Quinn built up a 25% interest in Anglo.

Mr Gilmore said Mr Cowen had ordered the Revenue climbdown after being lobbied on the issue, and demanded to know who had lobbied him.

The Taoiseach was unable to recall precisely who had lobbied him at that point, but insisted he had followed his officials’ advice in reversing the proposed change.

In a later statement, Mr Cowen said: “I made it clear to the House that I followed official advice in relation to the reversal of the proposed change by Revenue and the Department of Finance has confirmed that.”