Cabinet pressure forces Appleby to defer retirement

The country’s top white-collar crime watchdog who announced his retirement today has been forced to make a dramatic u-turn under intense pressure from the Cabinet.

Paul Appleby has deferred his retirement for up to six months to give the Government time to find a replacement.

The director of corporate enforcement had insisted that his early retirement would not disrupt investigations into rogue operations at the former Anglo Irish Bank.

But Public Expenditure and Reform Minister Brendan Howlin suggested the only way to ensure the corruption probe continues seamlessly was for him to stay in his post.

“We have engaged with Mr Appleby today and I am glad that we’ve a situation that there will be no disruption whatsoever in the investigative work,” said Mr Howlin.

Mr Appleby joined 7,700 public servants on a government deadline imposed to cut employee numbers by encouraging staff to retire early with pensions based on pre-pay cut salaries.

The 57-year-old, who has worked in public service for almost four decades, informed Jobs Minister Richard Bruton earlier this week of his intention to leave the post by February 29.

Mr Howlin said the Cabinet just learned the news today and that the director should have given more notice of his intention to leave.

“I did ask some time ago, last year, that anyone who was contemplating leaving to give as much notice as they could to make sure that there is no disruption to the general work of the public service,” he told RTE.

Mr Howlin could not confirm whether Mr Appleby would still be eligible for a pension based on his pre-pay cut salary, since he will no longer retire before the February 29 deadline.

He said the Government was working on the issue.

“Mr Appleby is engaging on the basis that he wants to ensure that the huge value of work continues seamlessly and that we will come to an accommodation that is legally watertight to ensure everyone’s concerns are met,” Mr Howlin went on.

Meanwhile, Mr Bruton has welcomed news that Mr Appleby is to remain in his post.

The Minister, who earlier today paid tribute to the director and wished him well for his retirement, said Mr Appleby’s decision to stay will enable the smooth transition to his successor.

“The arrangement which has been reached in co-operation with Minister Howlin reflects the importance that the Government accords to the crucial investigation into Anglo, and will facilitate his continued leadership at this time when substantial progress has been recently made,” said Mr Bruton.

He added that both he and Mr Howlin are now working to find a replacement for Mr Appleby.

If the Government decides to grant Mr Appleby his pre-pay cut pension under the Public Service Retirement Scheme, he is likely to receive a lump sum of €225,000, plus an annual €73,000 in line with his 39 years of service.

His salary is €146,000. He took a cut from €150,000 two years ago.

Mr Appleby insisted this morning that his early retirement would have no adverse effect on the Anglo probe, saying he informed Mr Bruton that he could be easily replaced.

“With regard to the Anglo Irish Bank investigation, I assured the minister that my resignation would not impede its successful conclusion,” he said.

Mr Appleby said the High Court had been told last week of the progress made including the completion of two investigative strands carried out by his office.

Counsel for the Director of Public Prosecutions (DPP) also indicated last week that state lawyers are likely to bring charges soon.

It could be a matter of weeks before individuals are charged following the three-year fraud probe.

Mr Appleby led an investigation into the National Irish Bank in which it was found to have overcharged clients and evaded tax for 10 years.

The bank was issued a €63m fine as a result.

He also took part in the investigation into the Ansbacher scandal involving a clandestine bank, which was unauthorised to operate in Ireland and was used by senior political figures in the Dail to evade tax.

The Government has received 7,700 applications from public servants wishing to take early retirement under the scheme.

The health sector is expected to lose 3,500 workers, and 2,000 people will leave the education sector, 1,500 of whom are teachers.

One thousand have applied for early retirement from the civil service, 730 from local authorities, 192 from the defence forces and 298 from gardaí.