FitzPatrick arrested - An opening step in very slow process

IT is very important not to say or even infer anything that might prejudice the investigation into affairs at Anglo Irish Bank but yesterday’s arrest did not come a moment too soon.

Public confidence in our justice system was in danger of being undermined by snail’s-pace investigations.

The arrest of former Anglo Irish chairman Seán FitzPatrick, who resigned from the bank on December 18, 2008, is very important on so many levels.

One is that, as Finance Minister Brian Lenihan has always insisted, it proves that “an extensive garda investigation is under way”. It also demonstrates that those at the centre of Irish banking during the insanities of the property boom are not immune to fraud squad attention though only time will tell where the process ends. Patience may yet prove as important as determination.

It is important to remind ourselves that Mr FitzPatrick — or any other banker for that matter — has not even been charged with a crime much less convicted of one so, like every citizen of this Republic, he is, in the eyes of the law, innocent until proven otherwise.

Nevertheless, Mr FitzPatrick has come to epitomise the culture of excess that played such a part in the collapse of this economy. Yet, 15 months to the day after he resigned he is the first banker to be arrested.

On February 25 last year the Financial Regulator asked the Garda fraud squad to join the criminal investigation into Anglo. One of the issues under investigation are hidden loans of up to €122m from Anglo to Mr FitzPatrick.

Gardaí are also working with an investigation by the Office of the Director of Corporate Enforcement into possible breaches of company law.

And there’s more. Anglo Irish has initiated legal action against Mr FitzPatrick in an attempt to recover unpaid loans of €70m.

The bank gave Mr FitzPatrick until last week to provide a repayment schedule and last Thursday a summary summons seeking judgment against Mr FitzPatrick for €70.4 million was lodged in the Central Office of the High Court.

The case is scheduled to be heard by the Commercial Court.

There is a very fine balance to be struck between the proper preparation of a case and prevarication. After all, the adage justice delayed is justice denied is as true for society as it is for an individual.

Unfortunately investigations related to banking — and so many other white-collar scandals — take so long to complete as to bring the capacity of the investigating authorities into question.

Just as the bishops and their theologians hid behind canon law, bankers have been, to date, secure in their reliance on the culture of deference and soft regulation but it’s nearly ruined the country.

Yesterday’s arrest is just an opening play in a process that will, hopefully, end with Mr FitzPatrick being convicted or with him clearing his name. If our justice system, justice and this society are to be served properly that day cannot come too soon.