ANALYSIS:THE ANNOUNCEMENT soon after 10am yesterday that Paul Appleby was to retire by the end of this month came as another example of the downside of the Government's blunt early retirement scheme.
It seemed less than ideal, to put it mildly, that the position of head of the Office of Corporate Enforcement should become vacant as the lengthy inquiries by the office into some very serious transactions in Anglo Irish Bank were coming to a climax.
That Appleby, who has been at the coalface during the battle to improve the level of compliance with corporate law here for longer than a decade, should decide to leave is understandable given the retirement scheme being implemented by the Government.
In his statement yesterday morning, he said he had reached his decision in recent weeks, having discussed the matter with his wife and family.
He told Minister for Jobs, Enterprise and Innovation Richard Bruton on Monday that there were a number of members of his staff who were capable of taking on his role in an acting capacity pending the appointment of a replacement “in a few months’ time”.
As of yesterday morning, then, following the release of pretty definitive press releases by both the Minister and Appleby, it seemed clear that the State’s primary agency for the enforcement of company law was to be under the control of an acting director as it neared the completion of one of the most important company law inquiries conducted in this State to date.
Just last week the High Court was told a decision to bring charges in the Anglo investigation could be just weeks away.
Bruton informed his Cabinet colleagues yesterday afternoon.
It seems the reaction to the news was one of concern. Following the Cabinet’s discussion of the matter, contact was made with Appleby.
Bruton’s department was involved as was that of Brendan Howlin, Minister for Public Expenditure and Reform.
By early evening it was announced that Appleby would be staying on until August, though the financial details were still to be discussed.
Last night sources confirmed that those involved wanted to be sure that whatever arrangement was arrived at did not in any way affect the Anglo inquiry.
On RTÉ’s evening news Howlin said he had been surprised by Appleby’s announcement and pointed out that last year he had urged people to give as much notice as possible.
However, he also recognised Appleby’s right to make his own decisions and he said he very much welcomed the director’s agreement that he would stay on for another six months.
Appleby, the Minister said, will remain as Director of Corporate Enforcement until a new director is appointed.
This would ensure that the office’s inquiries were “legally watertight”.
That Appleby’s departure might have in some unforeseen way further complicated the Anglo inquiries is certainly what most concerned the Government.
The office is investigating whether the making of €451 million in loans to 10 senior customers to buy a 10 per cent stake in Anglo from Seán Quinn to prop up the Anglo share price was in breach of company law.
It is also examining transactions with directors, including former chairman Seán FitzPatrick; the bank’s failure to maintain a register of directors’ loans; its €8 million loan to former finance director Willie McAteer in September 2008 and whether the bank published false or misleading reports.
The Garda fraud bureau is examining the loans to the 10 customers as well as back-to-back deposits between Anglo and Irish Life and Permanent that made Anglo’s books look healthier than they were.
