ACCOUNTANCY REGULATORS have widened the scope of an inquiry into the work of former Anglo Irish Bank directors Seán FitzPatrick, David Drumm and Willie McAteer.
Their role, if any, in the management of certain loans made last year to a number of “senior personnel” in Anglo will be examined by special investigator John Purcell, a former comptroller and auditor general.
This investigation is in addition to Garda and other regulatory inquiries into the Anglo Irish debacle, which culminated in the nationalisation of the bank last January. Each of the other inquiries – including that of corporate enforcement director Paul Appleby – are still ongoing.
Mr Purcell was engaged in February to conduct an inquiry into aspects of the Anglo affair by the complaints committee of the Chartered Accountants Regulatory Board, which regulates members of the Institute of Chartered Accountants in Ireland.
Former Anglo chairman Mr Fitz Patrick, former chief executive Mr Drumm and former finance director Willie McAteer are each members of the institute. Their departure from Anglo following the disclosure of the true extent of director’s loans given to Mr FitzPatrick was among the first topics examined by Mr Purcell.
Sources indicated that the extension of his work to inquire into loans granted to “senior personnel” in Anglo suggests that loans to other bank directors as well as senior management figures who were not board members will be examined. The development represents the second extension of Mr Purcell’s investigation in relation to Mr FitzPatrick, Mr Drumm and Mr McAteer.
The institute has already indicated that the inquiry will not conclude in the final three months of this year, assuming he continues to receive a high level of co-operation in his work.
Mr Purcell’s investigation in relation to Mr FitzPatrick, Mr Drumm and Mr McAteer was widened in March to include two other matters: an examination of their role if any in circular transactions between Anglo and Irish Life & Permanent; and their role if any in granting of loans totalling €451 million to 10 Anglo clients to buy shares held indirectly by insurance magnate Seán Quinn.
"The role of the special investigator is to determine whether or not a prima faciecase exists against a member or member firm rendering the individual member or member firm liable to disciplinary action," the institute said.
"Should a prima faciecase be found the matter is automatically referred to a disciplinary tribunal by way of a formal complaint."
The institute and the complaints committee are subject to oversight by the Irish Accounting and Auditing Supervisory Authority, a statutory organisation which supervises how the prescribed accountancy bodies regulate and monitor their members.
In addition to inquiring into Mr FitzPatrick’s loans, Mr Purcell is examining the performance of Anglo auditors Ernst Young.
