Lenihan says he can't force bank boss to return bonus
Michael Fingleton: agreed to return €1m bonus
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Finance Minister Brian Lenihan yesterday admitted he can't force Irish Nationwide boss Michael Fingleton to hand back his €1m bonus.
Mr Lenihan said he would not be the decision maker on Mr Fingleton's position. He added that the Government was trying to establish the facts, but the bonus was agreed prior to the State's €440bn bank guarantee.
"I don't have the power to do that because the payment itself was sanctioned before the guarantee was given," he said.
"In fact, the particular issue is there was a prior decision to make this bonus.
"Now, clearly it's for the board themselves in the first instance to establish the facts on that, see what remedies are open to them, then at the conclusion of that, if they cannot progress this matter further, it goes to my desk.
"There is a process to be followed here," he added.
Mr Lenihan also welcomed the decision of Gerry McCaughey to resign from two state boards after revelations about his business arrangements.
"Mr McCaughey has made his decision to resign from two important state companies. I don't think anyone can take from his ability or the determination he had to sort matters out at the Docklands Authority.
Honourable
"But he has decided, in the light of facts which emerged, that it is inappropriate for him to continue in these positions. He is concerned about any lack of public confidence in him. I think he has taken a course of action which is honourable; that's his decision and I respect his decision," he said.
Mr Lenihan said he was due to meet with the board next weekend to discuss the status of management at Irish Nationwide.
"I am not going into the details of the discussions with the board members who are appointed by the board at my request to that society.
"There are two of them. I met them earlier in the week. I expressed my concerns to them. There is a meeting of the board of Irish Nationwide later this week and they are reporting to me on Monday," he said.
"It is not appropriate for me to disclose my concerns because I am the responsible minister here. I have to deal with this position.
"You will appreciate if I were to divulge conversations I have had about this, there could be a question of legal liability. So I really would prefer to let the process continue now that I have initiated.
"The directors met me with the full permission of the board and they will work through these positions with the board and report to me next Monday," he said.
Last night, the minister said he would not be the decision maker on Mr Fingleton's situation. "That's how Government ministers should conduct themselves," he said.
- Fionnan Sheahan Political Editor
