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Drumm digs heels in over 'confidential' Anglo report

FORMER Anglo Irish chief executive David Drumm is fighting to keep secret a potentially explosive report on his tenure at the bank.

The confidential document, written by former Comptroller & Auditor General John Purcell, raises serious questions about Mr Drumm's conduct while at the Anglo helm.

The report, commissioned by the Chartered Accountants Regulatory Board (CARB), also examines Mr Drumm's role in the concealment of loans by former Anglo chairman Sean FitzPatrick.

Anglo had sought a copy of the document from Mr Drumm as part of the court proceedings in the US, where the disgraced banker is filing for bankruptcy with debts of more than €10m. A US court order obliges Mr Drumm to provide Anglo with certain records about his assets and dealings.

However, according to legal correspondence seen by the Irish Independent, Mr Drumm has refused to hand over the Purcell report.

His failure to disclose this and other records, and to commit to a meeting with lawyers representing the bank, prompted Anglo to seek a contempt of court order against its former chief executive on Monday night. Lawyers representing Mr Drumm claim the Purcell report was confidential and that their client was "not entitled" to provide a copy to Anglo.

CARB said last night that its by-laws did not prohibit Mr Drumm from passing the report to a third party.


Had Mr Drumm handed over the report, it is likely the contents would have been made public at a bankruptcy hearing taking place later this month.

Anglo is Mr Drumm's largest creditor, being owed €8.5m in unpaid loans.

As well as pursuing Mr Drumm over his debts, Anglo has indicated it may sue him over his role in the bank's dramatic collapse.

It is thought the Purcell report may be introduced as evidence in support of the bank's case.

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Emails seen by the Irish Independent reveal considerable tensions between both sides in recent weeks.

Lawyers for Anglo accused Mr Drumm of failing to meet a deadline for the production of documents sought by Anglo. They also accused him of failing to co-operate with them on the date for a court hearing, during which he will be questioned under oath about his finances and his actions while chief executive of the bank.

In a determination published yesterday, bankruptcy judge Frank Bailey refused to hold Mr Drumm in contempt.

However, he ruled that the planned hearing should take place no later than February 7.

Mr Drumm was given a copy of the Purcell report late last year, ahead of planned disciplinary proceedings by the accountancy watchdog.

CARB previously revealed Mr Drumm had cases to answer over several issues, including:

  • The concealment of €87m of loans by Sean FitzPatrick.
  • The movement of billions of euro in deposits between Anglo and Irish Life & Permanent to help bolster Anglo's books.
  • Changes made to loans given to a so-called 'golden circle' of developers to buy Anglo shares.
  • And loans given to five management personnel, including the bank's former chief financial officer Willie McAteer.

Mr Drumm has been living in the US since December 2008, when he quit his post at Anglo. A month later the bank was nationalised.

Gardai and the Office of the Director of Corporate Enforcement have been seeking to question Mr Drumm over irregularities at the bank.

Mr Drumm is also being sued for alleged fraud by a US credit card company.

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