Anglo's auditors knew of chairman's loans

Anglo Irish Bank’s chief internal auditor admitted tonight knowing ex-chairman Sean FitzPatrick had taken out loans from the lender but said he did not realise the extent of them until late last year.

The bank was nationalised last month after the €84m loans scandal became public in December.

Under questioning at an Oireachtas committee, Walter Tyrell claimed he knew of the scale of the borrowings only in late November.

But he later told Independent Senator Shane Ross he would have been aware at times.

“I knew Mr FitzPatrick was a borrower of the bank, yes,” Mr Tyrell said.

Mr Tyrell, who was appointed head of Anglo’s internal audit unit in 2005, was being grilled by TDs and Senators from the Economic and Regulatory Affairs Committee about the scandal-hit institution.

Mr Ross asked if the internal audit head would have known of the size of Mr FitzPatrick’s loans.

“I would have seen credit committee approvals going through for Mr FitzPatrick like I would for every other borrower of the bank,” Mr Tyrell said.

Mr Ross replied: “So the answer is yes?”

Mr Tyrell answered: “At any particular time, I would have, yes.”

The 12-year bank veteran claimed he never questioned Mr FitzPatrick’s borrowings until late November.

“Up until November/December 2008 there were no issues in relation to Mr FitzPatrick’s loans that were in my mind,” Mr Tyrell said.

“Mr FitzPatrick’s loans were in the loan book like all other loans, they went through the normal course of approval.”