O'Flaherty's nomination in limbo for two weeks

The proposed nomination of Mr Hugh O'Flaherty as vice-president of the European Investment Bank will remain in limbo for the …

The proposed nomination of Mr Hugh O'Flaherty as vice-president of the European Investment Bank will remain in limbo for the next two weeks

The Government suffered the embarrassment on Friday of failing to secure sufficient votes of support from the EIB's 25 directors for the former Supreme Court judge's candidature.

However, the Department of Finance has been informed by the EIB that votes will be accepted until the end of the month as many of the directors are on holiday.

A simple majority of 13 votes is required from the directors before Mr O'Flaherty's nomination can be formally ratified. It is then up to the bank's board of governors, made up of EU finance ministers, to ratify the appointment. The initial deadline for votes was 5 p.m. last Friday, which was agreed by the EIB directors at their last meeting on July 27th. On August 4th, each director was circulated with a full file on the proposed nomination, including hundreds of letters and e-mails from Irish people complaining about the proposed appointment of Mr O'Flaherty.

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A Department of Finance spokesman said last night that Mr O'Flaherty is still the Irish nominee for the position. "There were contacts with EIB officials over the weekend and we have been told that votes will be accepted until the end of the month."

A Progressive Democratic spokesman refused to comment on the matter or to say whether the party still endorsed the O'Flaherty nomination.

"We are not saying anything," he said.

It is understood the EIB received only "six or seven" votes by Friday evening and that all endorsed Mr O'Flaherty's candidacy.

Several directors told The Irish Times last week that they needed more time to study the O'Flaherty file before they voted.

The slow voting means that the O'Flaherty controversy, which has already damaged Fianna Fail and the PDs, will continue to haunt the Government into next month.

Several Fianna Fail backbenchers, unhappy with the nomination, which was announced in May, have privately expressed their anger at the rough passage Mr O'Flaherty's nomination for the £147,000 a year position is receiving.

"The sooner this matter is put to bed the better," one said yesterday. "This has been a noose hanging around our necks for the last four months. We were given the impression that there would be no problem with the nomination." If insufficient votes are submitted by the end of the month, the matter is likely to be discussed at the next meeting of EIB directors, scheduled for September 19th.

It is also likely to be discussed by EU finance ministers at the informal Ecofin meeting in Versailles on September 9th and 10th.