Trust in Central Bank threatened

THE trust and confidence Irish investors hold in the Central Bank will disappear for good, if the issues surrounding the insecure status of shares held in trust are not resolved, it was claimed last night.

The Morrogh Investment Action Group (MIAG), in an open letter to Finance Minister Charlie McCreevy, Central Bank Governor John Hurley and Irish Stock Exchange chairman David Kingston, say they have been shamelessly treated like abject mendicants since W&R Morrogh, formerly of 74 South Mall, Cork, went into liquidation with a shortfall of more than €10m in April 27, 2001, ending an unbroken Morrogh family business dating back to 1887.

The MIAG are furious that more that 3 million will be taken from their personal investments in public companies held in trust by the defunct brooking house to pay the fees of receiver Tom Grace of PricewaterhouseCoopers.

“We see the Central Bank, our watchdog and the statutory authority over our protective legislation, agreeing a course of action that could only have been intended to deprive us. We see Government complacently allowing this same legislation to be used with impunity and intent to violate our constitutional right of ownership.

"A Stock Exchange standing by and watching an investment system, recently introduced, being mauled out of existence; and permitting an investing public to be placed at the risk of ending up as we did. And of course there’s the now all too familiar image of the well-filled gravy train.”

MIAG say that not a single voice has been raised by those in positions up there to assist them. “A receiver was appointed as, what we believed to be, our representative.

"His main achievement to-date, as far as we are concerned, was getting the High Court to agree to his having recourse to our assets to pay his own fees and expenses,” they fumed.

“Why did the receiver see fit to release shareholdings to some and not to others? Did the Central Bank ensure that the duties and obligations required under Section 24 (7) (a) of the Act were adequately fulfilled and, if so, what yardstick was used in their assessment.

"It certainly was not in consultation with the investor. Have enquiries been made into the performance of the auditors and the future role of the regulator?

"These questions require answers, answers that must be given, not behind closed doors, but in the open where the public at large can hear them loud and clear,” the shareholders group demand.

MIAG said that while there are only are only some 2,500 investors involved in this receivership and the money in question is not enormous in real terms there are far wider issues at stake.

“If these issues are not tackled urgently not only will an industry of immense value to the nation be irreparably damaged but the trust and confidence that our financial guardian, the Central Bank, has enjoyed over the decades, even at international level, will disappear for good.”

“There is too much anger and frustration at the total lack of concern and sympathy seen from our so-called protectors for this to happen,” predicted MIAG.