ICAI Releases Update On Anglo Irish Investigation

by Jason Gorringe, Tax-News.com, London

27 March 2009

The Complaints Committee of the Chartered Accountants Regulatory Board (CARB), established by the Institute of Chartered Accountants in Ireland (ICAI), on March 25 announced the extended appointment of its special investigator, John Purcell, former Comptroller and Auditor General, who will resolve additional matters in the Anglo Irish Bank investigation, defined within the ICAI’s latest release.

In February CARB announced the appointment of Mr. Purcell as Special Investigator into the issues concerning directors’ loans and other matters at Anglo Irish Bank, to investigate possible breaches of ICAI Bye-Laws and rules of professional conduct by its members/member firms.

The ICAI’s release informs that the additional matters, which are now also to be the subject of an investigation by Purcell, are:

• Certain deposits made by Irish Life and Permanent (ILP) plc through its subsidiary Irish Life Assurance with Anglo during 2008, and in particular during September-October 2008, and actions taken in relation to such deposits and the treatment of same in the accounts/financial statements of Anglo and the reporting of same to the Financial Regulator and the purpose of same (and the subsequent resignation in February 2009 of Peter Fitzpatrick, Group Financial Director of (ILP), a member of the institute);
• The alleged provision during 2008 of loans of EUR451m to ten customers of Anglo in order to buy a number of the shares in Anglo held indirectly by Sean Quinn; and
• The role, if any, in relation to the aforesaid transactions of Mr. Sean Fitzpatrick and/or David Drumm and/or William McAteer, each being a director of Anglo at the relevant time and a member of the institute (Fitzpatrick and Drumm having resigned from Anglo in December 2008 and McAteer resigned in January 2009).
• The performance of the bank’s auditors, Ernst & Young, a member firm of the institute, of their role in connection with the audit of the financial statements/accounts of Anglo in relation to the aforesaid transactions.

The appointment of a Special Investigator follows from the determination of the Complaints Committee at its meeting on March 16, 2009 that the issues under consideration gave rise to questions of public concern in accordance with Bye-Law 71 of the ICAI Bye-Laws, noted the ICAI, concluding its release.

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