Calls for bank probe inspector

FINANCE Minister Brian Lenihan is facing calls to appoint a High Court inspector to the Anglo Irish Bank inquiry after it emerged that some files are being withheld from investigators on the grounds of “legal privilege”.

The appointment of a High Court inspector would supplement the legal powers of the Office of the Director of Corporate Enforcement, the gardaí and the Financial Regulator who are already investigating suspect transactions involving billions of euro at the now nationalised financial institution.

Labour Party spokeswoman on finance, Joan Burton, said the “notion that there would be legal privilege in relation to a fraud inquiry into a nationalised organisation sounds disturbing”.

“The minister should have ensured when he drafted the bank guarantee and subsequently the nationalisation legislation such obstacles could be overcome. A High Court inspector usually has an absolute power to commandeer documents and witnesses and should now be appointed.”

She added: “Unfortunately I would severely doubt that Fianna Fáil are actually able of taking tough action because that party is part of the toxic triangle with bankers and developers.”

The Department of Finance said that although the power to appoint a High Court inspector to Anglo lay with Mr Lenihan, he did not feel that was appropriate at this time.

A Finance spokesman said: “Several regulatory bodies are carrying out investigations of behaviour at Anglo Irish Bank.

“As the entirety of the share capital in Anglo Irish Bank Corporation Limited is now vested in the minister, it is the case that the minister would have locus standi to apply to the High Court for the appointment of an inspector or inspectors under Section 7 of the Companies Act 1990.

“However, having regard to the several ongoing investigations into the affairs of Anglo Irish Bank by the relevant independent entities, it is not considered appropriate to do so and it is preferable for the various investigations to run their course.”

The spokesman added that the ODCE had been quoted as stating its investigations had not been ‘“handicapped” by the withholding of any information under the legal privilege rule.

A spokeswoman for Anglo Irish Bank said it could not comment on the nature of the documentation withheld due to “legal privilege”.

Legal privilege usually refers to communications between a lawyer and client.