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Friday 28 July 2017

Paddy Power boss Kennedy owes bulk of €8.1m bank director debt

Patrick Kennedy: owed about €5m in mortgage debt at the end of December 2011
Patrick Kennedy: owed about €5m in mortgage debt at the end of December 2011

Colm Kelpie and Donal O'Donovan

THE head of bookmaker Paddy Power accounted for the vast bulk of the €8.1m outstanding in loans at the end of last year to the directors of the country's bailed-out banks.

Finance Minister Michael Noonan confirmed in a response to a parliamentary question that €1.5m was outstanding at the end of December 2011 to board members of the state-owned banks, while the remainder of the massive debt lay with top officials from Bank of Ireland.

Paddy Power chief executive Patrick Kennedy (43) owed about €5m of mortgage debt at the end of December last year and had €16,000 of credit card debt. Mr Kennedy was appointed as non-executive director at Bank of Ireland in July 2010.

An examination of the figures contained in Bank of Ireland's annual report shows that Mr Kennedy's debt had reduced from about €5.08m to €5.05m, suggesting he paid off €32,000 or about €2,700 a month.

Attempts by the Irish Independent to contact Mr Kennedy proved unsuccessful. Bank of Ireland would not comment and a spokesman for Paddy Power said the matter was one for the bank to respond to.

Mr Kennedy was appointed as a non-executive director at the bank in July 2010.

Performing

In the response to the parliamentary question from Fianna Fail TD Robert Troy, Mr Noonan said all the loans were performing.

"I am informed by the banks that where there are loans and facilities to current directors that all these loans and facilities are fully performing," he said.

"I am informed by IBRC (Irish Bank Resolution Corporation) that it has no loans outstanding to current directors.

"However, it has been necessary for it to record provision against loans to former directors and former management as noted in its annual reports."

The 2011 annual report for Bank of Ireland shows that the bank's chief executive, Richie Boucher, had €176,000 outstanding on mortgage debt, other loans totalling €660,000 and €2,000 linked to a credit card.

Mr Kennedy has been a member of the group remuneration committee at Bank of Ireland and the court risk committee since January 2011.

He has been the chief executive of Paddy Power since 2006.

Irish Independent

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