Thursday 14 December 2017

Isle of Man bank allows £1m against money owed by ex-chief

John Mulligan

John Mulligan

IRISH Nationwide's former Isle of Man operation -- now owned by Permanent TSB -- has made a £1m (€1.23m) provision against money owed to it by the unit's one-time managing director, Duncan Jones.

Accounts for the operation -- now known as Permanent Bank International -- seen by the Irish Independent -- reveal that the most recent provision against the loan was raised from £800,000 the year before.

Based on the provision of £1m that was set against the borrowings by the end of last December, the accounts note that Mr Jones's net outstanding loan listed as being owed to the bank is just £8,000. The money was borrowed by Mr Jones before Permanent TSB's involvement in the unit.

In 2009, Irish Nationwide's Isle of Man unit did not separately disclose Mr Jones' liability to the institution. It noted at the time that total outstanding staff loans amounted to £1.23m, compared to just under £2m at the end of 2008. At the end of 2009, the division said it had made a provision of £800,000 against the loan amounts.

The 2008 accounts for Irish Nationwide Isle of Man had revealed that of the almost £2m in staff loans owed at the end of that year, just under £1.5m of the amount had been advanced to Mr Jones. Mr Jones resigned as a director in April 2009.

In 2001, during the Moriarty Tribunal, Mr Jones denied in a letter to the tribunal that the offshore division had refused to co-operate with it.

Disgraced Tipperary TD Michael Lowry held an offshore account with Irish Nationwide Isle of Man from 1996.

Mr Jones said the Isle of Man unit had "fully discharged" its obligations under Mr Lowry's authorisation and that it had provided the tribunal with copies of the politician's account and answered all questions.

Recapitalisation

The latest set of accounts for Permanent Bank International show that it made a pre-tax profit of £192,000 last year after making a £1.76m loss in 2010. At the end of 2011 it had deposits worth £228.8m placed with Irish Life & Permanent and £90.5m in cash.

In February last year deposits at Irish Nationwide Isle of Man were transferred to Irish Life & Permanent, which is controlled by the State. Last July, deposits from Irish Nationwide in Ireland -- which had been headed by Michael Fingleton -- were transferred to Permanent TSB.

Permanent's Irish Life unit was acquired by the State for €1.3bn in March, completing a €4bn recapitalisation of Permanent TSB.

Irish Independent

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