Wallace’s political career may be derailed

INDEPENDENT TD and property developer Mick Wallace has admitted his political career could be at risk after being ordered by a court to repay €19 million he does not have to ACC Bank.

Mr Wallace said he would be unable to repay the money and the bank could seek to have him declared bankrupt as a result.

By law, undischarged bankrupts are not allowed to sit in the Dáil, meaning Mr Wallace would forfeit his seat in such a situation.

“Yes, that’s possible,” he said yesterday when asked if the court decision could end his political career. “I don’t know whether (ACC) have a mind to bankrupt me or not. I don’t have it (the money). So the next move is up to them as to what they do,” he told RTÉ.

ACC secured summary judgment orders for over €19m against the Wexford TD and his company, M & J Wallace Ltd, in the Commercial Court yesterday.

This means the bank can take steps to recover the money if he cannot repay it.

ACC appointed a receiver last May to a range of Mr Wallace’s assets, including the Italian Quarter on Ormond Quay, the Behan Square apartments on Russell St, a site on the North Circular Road, and development land in Rathgar, all in Dublin.

The bank has fixed charges on those assets and Mr Wallace said ACC would most likely seek to sell them to recover what it can.

But in court documents, the bank said the sale of the assets would not realise sums sufficient to cover the monies owed.

Mr Wallace acknowledged he would be liable to make up the shortfall, predicting it would be a “large portion” of the €19m.

“But I did borrow the money and I can’t pay it back, so I’ve got to take it on the chin,” he said.

“As a public representative, I’ve a large responsibility to uphold the law of the land and that’s what I’m doing... I’ve no idea what may happen next.”

The electoral acts state that an undischarged bankrupt cannot be a member of the Dáil. After the 1927 election, trade union leader James Larkin could not take up his seat because of this rule.

However, Mr Wallace has taken up his Dáil seat. Were he to be adjudicated bankrupt by a court, he would have six months in which to get the order annulled or be discharged from the bankruptcy. If neither occurred, he would then lose his seat.

In all, it is understood that Mr Wallace owes over €40m to four banks.

“My company is clearly in a difficult place, owing money to subcontractors, the Revenue, and the banks,” he said. “I sincerely regret this. We will continue to do our utmost to meet repayments and maximise the return to our creditors.”