Lehihan frustrated no bankers in jail

FINANCE Minister Brian Lenihan has admitted he is “as frustrated as any other citizen” that no senior banker has been jailed over the scandals to have hit the sector.

Speaking on the anniversary of the controversial banking bail-out last year, Mr Lenihan said he found it difficult that “we’re not seeing bankers in jail yet” who participated in concerning financial practices.

However, the senior cabinet member added unlike the US – where disgraced financier Bernie Madoff has been arrested, charged, convicted and imprisoned for investment fraud – the legal framework in Ireland means delays in any potential prosecutions here are unavoidable.

Mr Lenihan told current affairs programme Prime Time: “We share the same legal system as England and France, where equal delays take place in proceeding with these matters. I’m as frustrated as every other citizen in this country that we’re not seeing bankers in jail yet. But... I can’t interfere with a prosecution anymore than I can call up a local Garda station and suggest what they should do.

“A huge investigation is underway under the supervision of the Garda Commissioner. Large numbers of gardaí have been assigned to it, hundreds of statements are being obtained, and detailed cross-jurisdiction co-operation is taking place with the United Kingdom authorities in relation to this. This is a serious investigation which I believe will achieve results.”

Mr Lenihan was speaking on the anniversary of the €400 billion Government guarantee scheme covering Ireland’s six main banks, which took place on September 30 last year.

Since the move, the Government has come under consistent criticism over a perceived failure to take legal action against senior bankers whose practices contributed to the near collapse of the financial sector.

Reacting to the minister’s comments, Fine Gael finance spokesperson Richard Bruton said, while the delays caused by Ireland’s legal framework were understandable, it would be impossible for genuine confidence in the banking sector to return unless action was taken.

“Mr Lenihan’s the lawyer, so he’s relatively qualified to comment on how to proceed with a conviction and whether it would succeed in court. But it is strange that here we are 12 months on and there doesn’t seem to be any lessons drawn over this,” said Mr Bruton. “People are furious that those who have done wrong get a golden handshake and that seems to be the end of it. I think the public can’t understand why immediate action isn’t taken. We want to restore our reputation of the financial sector being properly regulated, but we haven’t seen anything that would convince the public that there has been a sea-change here.”