Cowen denies knowing who received Anglo loans

TAOISEACH BRIAN Cowen insisted he did not know the names of the 10 individuals who were loaned a total of €300 million by Anglo Irish Bank.

“I am telling you the truth and the total truth,’’ said Mr Cowen.

“This is not a matter for me in respect of an internal arrangement made in Anglo Irish Bank . . . that was understood, at the time, to be in compliance . . . that was found out in due diligence to raise certain questions which are now being addressed by the Financial Regulator and the Director of Corporate Enforcement.’’

He was replying to Labour leader Eamon Gilmore, who said the House needed to know who was involved in the “golden circle’’. Mr Gilmore said that if the Taoiseach did not know who they were, he should find out and come in and tell the House.

Mr Cowen said that the Financial Regulator had obtained legal advice from Anglo Irish Bank’s advisers that the transaction was in compliance with the law.

Earlier, Fine Gael leader Enda Kenny asked: “Do we know who these people are? When did the Minister for Finance tell you about this? There is a difference, Taoiseach, between protecting the national interest and protecting the interest of the Fianna Fáil party or protecting the interests of Anglo Irish Bank.’’

He asked Mr Cowen to confirm that “no member of your Government was involved in any way, by encouragement, support or any activity . . .” Mr Cowen said: “I don’t know of any names . . . I’m not involved in any names . . .’’ Dinny McGinley (FG, Donegal South-West) suggested Mr Cowen did know the names, and that people had their own suspicions.

Mr Cowen said that when he was minister for finance, in March, it had been indicated to him that there was a situation developing relating to “contracts for difference issue” in Anglo Irish Bank. “Anglo Irish Bank proceeded with that and Mr [Seán] Quinn made a statement on July 13th relating to it.

“It was indicated, at that time, that the matter had been resolved and I had no indication, and no involvement whatsoever, in names of any description . . .’’

Mr Gilmore said it was now known that the so-called resolution of the Quinn issue in Anglo Irish Bank involved an arrangement whereby the bank provided €300 million to 10 wealthy individuals. The taxpayer was left with the bill.

Mr Kenny said that while he did not want to impugn the Taoiseach’s personal integrity, he wanted Mr Cowen to confirm when he knew about the transactions between Anglo Irish Bank and Irish Life Permanent.

Mr Kenny said that in the past week there had been evidence all over the country of allegations, rumours, stories and fact of what had gone on relating to Anglo Irish Bank, and more to come.

Mr Cowen said he found out about certain governance issues in Anglo Irish only when the Government was considering nationalising the bank. Mr Cowen said that in dealing with any wrongdoing, there must be due process. He said he realised the anger in the community about wrongdoing and he shared it in many respects.

* In a statement last night the Financial Regulator said: “We sought assurances from Anglo Irish Bank at the time that the unwinding of the Quinn CFD position was in full compliance with all legal requirements. This legal advice, which had been provided to Anglo’s directors, came from a leading Dublin law firm. While various aspects of this were followed up, the advice received was very detailed and clear and was accepted by the Financial Regulator based on the information in possession of the regulator at the time. New information has since emerged in relation to these matters, in particular in relation to the manner in which loans were provided to fund some of the unwinding of the Quinn transactions. As already stated, these are now subject to a detailed investigation by the Financial Regulator, which is ongoing.”