Sunday 18 November 2018

Why directors' loans fell below the radar

Maeve Dineen

In each Anglo Irish Bank annual report there is a note on the accounts showing the total loans given to directors. This total is measured at a single point in time -- in Anglo's case September 30. For eight years prior to 2008, Sean Fitzpatrick transfered some of his loans from Ango Irish Bank to Irish Nationwide. He would then transfer the loans back to Anglo at a later date.

Therefore, for eight years, the figure for the total directors' loans given in the Anglo accounts was inaccurate. Indeed, 2008 was the first year Mr Fitzpatrick revealed his accurate figure, which amounted to €87m. Twice the sum of the other 12 directors' loan figures.

While this transfer of loans did not breach the law, it could be seen as inappropriate from a transparency point of view.

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