Ministers ‘hoping €1m bonus will be forgotten’

MINISTERS were last night accused of preparing to cave-in over bailed-out bank chief Michael Fingleton’s controversial e1 million bonus.

Fine Gael and Labour rounded on the Government after Finance Minister Brian Lenihan announced a month-long probe into the affair which has rocked Irish Nationwide.

Labour leader Eamon Gilmore warned Mr Lenihan was trying to bury the matter in the hope it would be forgotten about in a few weeks’ time.

The sharp criticism came as Fine Gael leader Enda Kenny demanded the Government take action immediately by rushing emergency legislation through the Dáil which would retrospectively ban such bonuses at banks bailed out by the taxpayer.

The Greens insisted Environment Minister John Gormley’s hard-line call for Mr Fingleton’s immediate resignation had not been compromised by Mr Lenihan’s announcement.

However, Mr Kenny insisted the Cabinet had shown a collective lack of spine over the bonus row and Mr Fingleton had “given the fingers” to taxpayers.

“After huffing and puffing for 36 hours the Government have reverted to type and responded with a whimper to the outrage caused by this obscene payment.

“Commissioning a report in a month’s time is a pathetic way to deal with this very immediate issue,” he said.

Mr Gilmore said it was ridiculous to suggest it would take a month to investigate the matter and the only reason for the delay was so that the matter would be “buried” by the April 7 emergency budget.

Mr Fingleton took the bonus last November, just weeks after the Government moved to protect Irish banks with the e440 billion guarantee.

Mr Lenihan said the two Government appointed directors to Irish Nationwide bank would carry out the inquiry into the board as well as the bonus issue.

As the issue dominated the Dáil, Taoiseach Brian Cowen insisted “all options” would be considered when the inquiry was complete.

Ahead of the matter being discussed at Cabinet, Tánaiste and Minister for Enterprise Mary Coughlan also waded into the row saying the e1m payment created “huge difficulties” and should be given back.

This followed comments by Foreign Minister Micheál Martin: “It should be returned.”

Mr Martin said the banking world needed to get a grip on reality, adding: “People are saying in banks they can’t work for half a million or they can’t work for e400,000 — and that just needs to change.”

The controversy intensified as it emerged one of Irish Nationwide’s own board members, Danny Kitchen, had agreed to replace Mr Fingleton as chief executive but later declined the job after the Government capped the salary for the position at e360,000 a year.