Ex-Anglo chiefs face discipline hearings

FOUR bankers including former Anglo Irish Bank chairman Seán FitzPatrick and its former chief executive David Drumm, are to face professional disciplinary hearings over their role in controversial bank transactions.

The Chartered Accountant Regulatory Board yesterday confirmed Mr FitzPatrick and Mr Drumm as well as former Anglo Irish finance director Willie McAteer and the former finance director of Irish Life & Permanent Peter Fitzpatrick, will be called to appear before a disciplinary committee to answer charges of professional misconduct. It follows the completion of reports into the four by a special investigator — the former comptroller and auditor general John Purcell — on behalf of the board which established prima facie cases against them in relation to certain transactions.

All four men are members of the Institute of Chartered Accountants in Ireland.

The possible sanctions facing the four include expulsion or suspension from practicing as chartered accountants. They may also face a maximum penalty of €30,000 each plus an unlimited amount for costs incurred by the board.

A board spokesman said it expected its disciplinary committee would establish a three-person tribunal to conduct hearings next March or April. All four bankers will be entitled to be legally represented at such hearings which are likely to be held in public.

It is understood Mr Purcell got information from 30 individuals in relation to his investigation, although the board has refused to divulge if they included Mr Fitzpatrick and his former banking colleagues.

Mr Purcell said that Mr Fitzpatrick had questions to answer over his role in the temporary transfer of his own loans and their non-disclosure in the financial statement of Anglo Irish Bank as well as transactions between Anglo and Irish Life & Permanent at key reporting dates in 2008 and a loan made to Mr McAteer in the same year.

The transactions between the two banks relate to back-to-back loans totalling €7.45 billion from Irish Life & Permanent which was designed to artificially improve Anglo’s accounts.

Mr McAteer must also answer the case of his role in relation to the temporary loans to Mr Fitzpatrick and the transactions with Irish Life & Permanent as well as the disclosure of the loan he received from Anglo in September 2008. Peter Fitzpatrick has to face a hearing on the transactions between his bank and Anglo.