AN OPEN LETTER TO THE DIRECTOR OF CORPORATE ENFORCEMENT

Ian Drennan

Director

Office of the Director of Corporate Enforcement,

16 Parnell Square,

DUBLIN 1

Dear Mr Drennan

In June 2011 - as you will know, since it was on your Office's application - the High Court ordered the disqualification of a former CEO of National Irish Bank ("NIB") from acting as a company director for 9 years. Other NIB senior personnel have also been disqualified. The basic reason was the bank's misconduct when directed/managed by the individuals in question - mainly its role in sophisticated tax-evasion schemes.

The loss to the State from these schemes was shocking at the time, but would barely raise an eyebrow today.

Nearly 5 years after nearly all of the State's banks were exposed as insolvent, no legal action has been taken against the vast majority of those who steered their companies from great wealth to multi-billion euro deficits, in the process doing cataclysmic damage to the finances of the State and of its citizens, as well as impoverishing many shareholders.

It is said, with justice as far as we can tell, that no crimes were committed. More questionably, it's said that no individual broke any term of his or her employment contract. It is even claimed - or at least implied - that not one bank director was in breach of his/her duties as a director even as they all managed their banks into insolvency and ruin.

The new managers and shareholders of the banks either share these remarkably benign views of the stewardship exercised by their predecessors or (more likely) assign a low priority to what they consider a mere "blame game".

However, in our view, this is not good enough. We are surprised that you appear to think that it is. Your office is responsible for ensuring that company directors, auditors and senior managers meet minimum standards of behaviour and probity. It is extraordinary to the point of scandal that there has been no visible action taken in this regard, and there is no indication of any intent to do so. This point has already been made to your Office privately, but you have felt unable to respond meaningfully. Your office has been a model of prompt and courteous communication, but we remain dissatisfied that nothing of substance has been said.

Your lack of visible action makes it difficult to avoid the conclusion that you are not going to do anything beyond what you have already in train in regard to Anglo. Our view is that those proceedings address relatively trivial matters and/or events which represent consequences rather than the causative failures of governance.

This letter is to formally request you, as a matter of urgency, to seek disqualification of every auditor, senior manager, and director (of relevant subsidiary companies, as well as main board members, and including shadow directors) of all banks licensed in the State. Again, it will be as obvious to you as it is to us, but some individuals will have little difficulty in showing that disqualification would not be appropriate for them. We suggest that it would serve the public interest for this to be confirmed, after full consideration, by you or by the High Court. It would also, arguably, be of benefit to the individuals in question. It would only be fair to allow those who performed their duties to the required standard to show the world that they did so.

We understand that protocols have to be followed. For example, in the case of NIB, Inspectors were appointed and your Office based its applications largely on the findings made by the Inspectors. Whether the same needs to be done for - to name but one - AIB plc, given the comprehensive reports already in the public domain and others apparently available to current management, is questionable, but if it does need doing, it is long overdue.

Yours sincerely

Fergus O’Rourke, Lawyer & former banker

Karl Deeter, Irish Mortgage Brokers

Michael Hennigan, FinFacts

Seamus Carrick, F.C.C.A., Trinity Accountants

James Lee, solicitor

Eoghan O'Leary, company owner

Declan O'Toole, solicitor

Brian Lucey, TCD

Constantin Gurdgiev, TCD

Arthur Doohan, Consultant

Gerard Sheehy Financial Adviser

Kealan Flynn, Public Affairs Adviser

Deirdre de Burca, former Senator

Danny Keohane FRIDE, Brussels

Colm Fitzgerald, actuary

Dermot Conway, solicitor

David Hall, Irish Mortgage Holders Organisation

Brian Kelly,Independent I.T. Consultant

Michael Logan, Businessman

Brendan K. O'Rourke, Dublin Institute of Technology

Michael O'Neill Architectural Graduate

Cathal Malone, Barrister-at-law

Dermot Casey, Lecturer, UCD

Tom Baldwin,solicitor

Kate Bopp, Co-founder, N.G.O.

Declan Flynn, Kilternan

David O'Brien, Monkstown

Caitriona Warfield,Saggart

John Agger, Cobh

Dermot Kenny, Small business manager

Cathy Dalton Architect,researcher, lecturer

Joe Cunnane F.C.A. Accountant & Tax Advisor

Anne Hesnan, County Meath

Morgan C. Jones Actor

Nessa Childers, Member of the European Parliament

Andy Moore, Dalkey

T. J. Greene, Monkstown

Yvonne Sugrue County Kerry

David McCarthy, Clondalkin

Fiona Hanley, Art Director

Sarah Carey, Broadcaster & columnist

Denis Hinsley, County Clare

Ellie Hinsley, County Clare

( Your name will be added here if you so request in a comment below )

Copy sent to each T.D. and Senator

PDF version of the Open Letter here and of a legal background note here

Update on Sunday, April 7, 2013 at 08:37AM by Fergus O'Rourke

Note to commenters: Your name and brief description (together with a link to your information) will be added to the letter above, but only if you make it clear that this is what you want. Some identifying information, in addition to your name, is necessary.

Update on Sunday, April 7, 2013 at 07:47PM by Fergus O'Rourke

Brian Kelly has been added as a signatory

Update on Tuesday, April 9, 2013 at 11:04AM by Fergus O'Rourke

Michael O'Neill, Michael Logan and Brendan K. O'Rourke added as signatories

Update on Wednesday, April 10, 2013 at 03:26PM by Fergus O'Rourke

Cathal Malone has been added as a signatory

Update on Wednesday, April 10, 2013 at 09:14PM by Fergus O'Rourke

Dermot Casey has become a signatory

Update on Friday, April 19, 2013 at 10:01AM by Fergus O'Rourke

Tom Baldwin and Kate Bopp are now signatories

Update on Thursday, April 25, 2013 at 11:26AM by Fergus O'Rourke

Declan Flynn, Caitriona Warfield, and David O'Brien have been added as signatories

Update on Sunday, May 5, 2013 at 08:11AM by Fergus O'Rourke

John Agger has become a signatory

Update on Wednesday, May 8, 2013 at 11:16AM by Fergus O'Rourke

Dermot Kenny has become a signatory

Update on Tuesday, May 14, 2013 at 12:11PM by Fergus O'Rourke

Cathy Dalton and Joe Cunnane have become signatories

Update on Monday, June 10, 2013 at 01:36PM by Fergus O'Rourke

Anne Hesnan has signed

Update on Thursday, June 27, 2013 at 10:23AM by Fergus O'Rourke

Morgan C. Jones has added his name

Update on Tuesday, July 2, 2013 at 06:38AM by Fergus O'Rourke

Nessa Childers M.E.P. has added her signature

Update on Tuesday, July 2, 2013 at 08:00AM by Fergus O'Rourke

Andy Moore and T.J. Greene have now signed.

Update on Friday, July 5, 2013 at 10:36AM by Fergus O'Rourke

Yvonne Sugrue is now a signatory

Update on Tuesday, July 9, 2013 at 08:16AM by Fergus O'Rourke

David McCarthy and Fiona Hanley join the list of signatories

Update on Thursday, July 11, 2013 at 09:50AM by Fergus O'Rourke

Sarah Carey,Denis & Ellie Hinsley become signatories

Comments

[Dermot Kenny]

I hope this letter goes viral.

[Catriona Warfield]

I fully endorse this letter and would appreciate it if you would add my name.

[Francis Grimes]

Well done on the letter. Professionally written, succinct points & goes to the heart of the matter in terms of people in financial office being conspiratorial in keeping truth hidden.

[Declan Flynn]

Considering the way bankers have been treated, the payment of hundreds of thousands to failed developers by NAMA to keep them in luxury & now giving all the power back to the bankers in new insolvency laws I gladly endorse everything you've written. Hopefully this goes viral which will force the impotent powers that be, Noonan, Kenny & useless Labour to act. Please add my name to list. Declan Flynn

[John Agger. Cobh.]

I agree with this letter. Please add my name.

[Claire Dorrity]

I fully agree with this letter

[Annette Williams]

You have my support.

[Joe Cunnane]

Very well written letter. Please add my name to the list

[Cathy Dalton]

Please add my name

Cathy Dalton,

Architect, researcher, lecturer.

[Michael Melia]

I fully endorse the content of your letter and deplore the lack of political will to seek justice for the people of Ireland who will pay dearly for the ineptitude of those in positions of trust. The total failure of bank risk advisors, the lunatic lending policies of senior management designed to fill their own pockets with massive bonuses and the abject failure of aledgedly competent auditors to see the slightest crack in the facades of these banks. Most of all though I find the total failure of the Regulator and Central Bank governor is worst of all, these individuals were handsomely paid to guard the people against such a potential scenario arising and they failed miserably but extracted themselves with no sanction whatever and retired on fat pensions. If we are to advance as a state this must be addressed otherwise we go backwards and what does that say for us as a modern society.

[Peter Donnellan]

Agree wholeheartedly with your comments; however, this state is not known for doing the right thing.

[Morgan C. Jones]

I wholeheartedly support this - frankly politicians cannot be trusted with running an inquiry into this. We may as well throw open the cell doors in Mountjoy and let the inmates conduct their own retrial. These people have spent too long supping at eachother's tables and golfing on eachother's greens

[Richard Barrett]

I'm not a lawyer myself, but this seems self-evident.

[Andy Moore]

Please add my signature I am based in Dalkey !!

[T.J. Greene , @greentak Monkstown]

Excellent ; Fully agree .Please add my name ;many thanks Fergus

[Deirdre O Halloran]

Good letter Fergus

[Sinead Power]

I agree with your letter Fergus. You can add my name.

[Fergus O'Rourke]

@Sinéad Power

Please make e-mail contact with me here: sitecom@tinet.ie

I need some identifying information before I can add your name

[David Mc Cathy]

Hi Fergus,

Fair play on your undertaking. Hopefully this will get the bankers answerable for the mismanagement of our banks. Best of luck

David Mc Cathy

[Joy Gough]

Agree with the contents of this letter Fergus you can add my name thanks