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Friday 22 August 2014

Lorcan McCluskey denies negligence when issuing documents to ‘Maple 10’

Sarah Stack

Published 12/02/2014 | 13:21

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Lorcan McCluskey: letters
Lorcan McCluskey

A FORMER Anglo Irish Bank executive has denied any negligence in the issuing of documents to the so-called Maple 10.

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Lorcan McCluskey alleges he was ordered to prepare updated facility letters three months after multi-million euro loans for shares were approved amending terms of the loan.

He told the trial of three Anglo executives that hand written instructions on the letter were penned by his line manager, Michael O'Sullivan, and Pat Whelan, then head of lending for Ireland.

Under cross examination, Mr McCluskey was questioned if the issuing of fresh facility letters should have been his job when less money than originally agreed was drawn down for the shares in July 2008.

"I don't think there is any negligence here on my behalf," said the former associate director of lending

"There is no need to be so defensive," replied Brendan Grehan, senior counsel for Pat Whealan.

It is alleged the high-profile investors were approached as part of the bank's plan to unwind 10pc of stock held by the Quinn Group.

Each agreed to €60m loans, but just €45m was drawn down to cover the cost of the shares.

Mr McCluskey is being questioned the contents of a letter - drafted in October 2008 but back dated to July 17 2008 -  which removed that the

borrowers were responsible for 25pc recourse. This meant instead of being liable for a quarter of the loan, even if the shares declined in value, the borrowers would have been able to walk away from any losses if they continued to fall.

He yesterday told the jury at the Circuit Criminal Court in Dublin that he has refused to sign the letter, which was ultimately signed by his line manager Mr O'Sullivan and Mr Whelan.

The bank's former chairman Sean FitzPatrick, 65, from Greystones, Co Wicklow, former chief rick officer William McAteer, 63, from Rathgar in Dublin and 51-year-old Pat Whelan, from Malahide, in Dublin, have all pleaded not guilty to 16 charges of unlawfully providing financial assistance to individuals for the purpose of buying shares in Anglo

Irish Bank in 2008.

Mr Whelan also denies seven charges of being privy to the fraudulent alternation of a loan facility letter.

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