Lenihan didn't know of decision to give Neary €630,000
Wednesday February 25 2009
FINANCE Minister Brian Lenihan was not told in advance about the decision to give a €630,000 pay-off to the former financial regulator.
He also had no role in approving the settlement for Patrick Neary, which was made by the board of the Financial Regulator. A spokeswoman for the Financial Regulator, which is an independent state body, said the decision to pay the settlement had been made following independent legal advice.
But she refused to state whether it could legally reverse the payment, as demanded by Green Party minister John Gormley and the Dail's regulatory watchdog.
According to government sources, there was a "sense of dismay" in the Cabinet when ministers learnt about the size of the pay-off.
Last night, Mr Gormley appealed to Mr Neary to consider returning part of his "mind-boggling" €630,000 settlement, which consisted of a retirement lump sum of €428,000 and €202,000 in respect of the two years left on his contract.
As well as receiving a €630,000 settlement, Mr Neary is also entitled to an annual pension of €142,670.
A spokesman for Mr Gormley said he was "especially concerned" about this €202,000 pay-off.
"He shares the public dismay at this -- it was not a Government decision. It is always open to Mr Neary to return the payments," he said.
Refused
But Fine Gael TD Leo Varadkar accused the Greens of trying to become "semi-detached" and refusing to accept their role in government.
"They need to learn from the PDs and Labour before them, once you join Fianna Fail, you're stuck with them," he said.
Mr Neary stepped down from his position last month after a damning report into his handling of secret loans to Anglo Irish Bank directors.
He said he had not been aware that Anglo chairman Sean FitzPatrick had concealed more than €80m in director's loans despite Mr Neary's staff knowing since January 2008.
- Michael Brennan Political Correspondent
