A NUMBER of Fianna Fáil backbenchers and Minister for the Environment, John Gormley, have backed calls for an inquiry into the circumstances that led to the banking crisis.
In the first demonstration of support from within Government for such a move, a motion sponsored by Fianna Fáil deputies Mattie McGrath and Sean Connick has called on the party leadership to “instigate an immediate and thorough inquiry” into the banking crisis, and such an inquiry to have meaningful and statutory powers.
The motion is to be put before a meeting of the Fianna Fáil parliamentary party.
Separately, Mr Gormley said in Dublin yesterday he would like to see a parliamentary inquiry commenced as early as possible in the new year. “[We need] to get to the bottom of what actually occurred. That is what people want.”
The developments follow renewed calls for an inquiry in the past week and disclosures in Prime Time Investigates on RTÉ that then Irish Nationwide chief executive Michael Fingleton personally sanctioned a mortgage of €1.6 million to former EU commissioner Charlie McCreevy for a property he purchased in the K Club in Co Kildare.
In the Dáil last week, Taoiseach Brian Cowen said he would have to carefully consider such an inquiry before giving any commitment.
Mr McGrath said yesterday that the motion, which he submitted yesterday, would be tabled early in the new year. He was aware any such inquiry should not compromise the investigations into Anglo Irish Bank being conducted by the Director of Corporate Enforcement and the Garda.
Chris Andrews, one of the deputies supporting the motion, said yesterday that such an inquiry was inevitable. “The public needs to know what happened, and where it all went wrong. The senior management in the banks appear to be left in place without accountability, with taxpayers footing the bill for that mismanagement.”
Mr Andrews said his preference was for a parliamentary inquiry. A tribunal was a non-starter because of the huge cost and the open-ended nature.
Mr Gormley said the Prime Time disclosures around Mr Fingleton showed the need for an inquiry into the banking system. “We do need to get to the bottom of what occurred. Our focus will be on getting our banking system up and running again.”
He said he did not know the best mechanism for such an inquiry.
Asked was there a special relationship between the banks and Fianna Fáil, Mr Gormley said: “I don’t know, and that is what an inquiry would have to establish. It would have to establish what was [Mr Fingleton’s] relationship with various people.”
Mr Gormley also supported a parliamentary committee inquiry.
“It would be cost-effective and it would be efficient. We would have to look at how it would be done. I would hope in the new year we could commence an inquiry.”
Labour deputy leader Joan Burton said robust whistle-blower legislation would need to be in place before any inquiry was set up. People at a senior and a middle level in the banks must have been aware of what was going on.
“People like that have to be encouraged to tell the real story of what was going on in the banks.”
She added that the Freedom of Information Act needed to be extended to the Central Bank, the Financial Services Authority, Nama and other agencies.
Irish Nationwide is conducting an internal investigation into the matters raised in Prime Time Investigates.The building society said the investigation would focus on the accuracy of the allegations and the issue of client confidentiality.
It said it took the matters raised and the manner in which they were raised “very seriously”.
