€400,000,000,000
A Colony Again.





In the final analysis, no laws, no rules, no regulations can prevent greedy, self-serving behaviour by company directors. All they can do is make such behaviour harder to engage in. Add to this, that greedy, self-serving people seek each other out. The old Irish phrase "Aithníonn ciaróg ciaróg eile" (one "beetle" recognises another) captures this aspect of corporate life beautifully. More at Irish Times.
Niamh Brennan is Michael MacCormac professor of management at University College Dublin, and is academic director of the Centre for Corporate Governance at UCD
http://www.irishtimes.com/newspaper/finance/2008/1220/1229725700373.htmlCIARÁN HANCOCK, Business Affairs Correspondent
Sat, Dec 20, 2008
SEÁN FITZPATRICK’S resignation from Anglo Irish Bank on Thursday grabbed all the headlines, but he wasn’t the only director to fall on his sword.
Former McKinsey Ireland chief Lar Bradshaw also took his leave after it emerged that he had taken out a joint loan with Mr FitzPatrick, which was temporarily transferred to Irish Nationwide Building Society before its September 30th year-end.
This had the effect of hiding the loan from shareholders in the bank’s annual report.
The size of this joint loan was not revealed and Mr FitzPatrick said Mr Bradshaw had “no knowledge” of the temporary transfer of the funds.
Born in Dublin in 1960, Bradshaw spent 20 years with the blue chip management consulting firm McKinsey, working overseas and latterly as managing director of its Irish operation, which he founded.
He holds a Master’s in Business Administration degree from IMD in Switzerland.
Records at the Companies Registration Office show that he holds 12 directorships here, although that included Anglo.
He is listed as executive chairman of Cove Capital.
Bradshaw and FitzPatrick not only served together on the board of Anglo, which Bradshaw joined in 2004 – they were also both board members of the Dublin Docklands Development Authority, which had a multi-billion budget to redevelop 1,300 acres in the faded docks area.
The pair were also co-investors in a number of projects, including Fresh Mortgages, the Irish sub-prime lender that suspended its new loans in November. Most of their investments have not been publicised.
It did emerge, however, that Bradshaw invested in the Derek Quinlan-led group that backed the Four Seasons Hotel in Dublin.
On May 3rd, 1997, Bradshaw was appointed as chairman of the fledgling DDDA by John Bruton’s coalition government, a position he held for 10 years. He was said at the time to have no political affiliations.
At the time of his appointment, The Irish Times quoted a source as saying that Bradshaw was chosen to head the DDDA because of his “relative youth, expertise and incredible vision”.
Their dual memberships of the Anglo and DDDA boards drew criticism from various quarters, given the bank’s involvement in funding projects in the area.
In particular, the DDDA was a large investor along with Bernard McNamara and others in a vehicle called Becbay that paid €412 million to buy the former Irish Glass site in Ringsend.
That transaction was funded by Anglo.
Small in stature, Bradshaw was described by one senior financier as a “good man for building relationships and making introductions, but not one for detailed negotiations”.
One source said he successfully built relationships with the existing local communities in the Docklands, who found their daily lives disrupted enormously by the major construction work that has taken place over the past decade.
“He was able to play the role of the ‘real Dub’ even though he was groomed by McKinsey,” said one source. “It was a neat trick.”
Following his resignation from Anglo, and the questions that remain about the circumstances of his joint loan, Bradshaw will need all of his skills of persuasion if he is to rebuild his reputation.
© 2008 The Irish Times
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OPINION: There are questions about the behaviour of Anglo's board and management, the auditors and the regulators, writes Niamh Brennan
THE REPUTATION of Ireland Inc is again under the spotlight with the resignation of Anglo Irish Bank's chairman Seán FitzPatrick, chief executive David Drumm and non-executive director Lar Bradshaw for their roles in hiding loans to Seán Fitzpatrick from shareholders.
Seán FitzPatrick's loan raises many questions. Will the borrowings be repaid? Were the borrowings used for legitimate purposes? Were the borrowings used to prop up Anglo's share price?
There are also questions about the behaviour of the board, the management of the bank, the auditors and the regulators.
The Stock Exchange's Combined Code on Corporate Governance is not mandatory. Non-compliance is permitted, provided it is explained. The Anglo Irish board availed of this comply-or-explain derogation in a number of ways.
For example, the board deviated from the combined code requirement that a former chief executive should not become chairman of the company. The combined code objective is that no one person in a company should dominate. This requirement is fundamental, and very few companies ignore it. By retaining his power in the company Mr FitzPatrick reduced the risk of his loans being disclosed.
Mr FitzPatrick served on the board since 1985, while another so-called independent director was appointed in 1988. Under the combined code nine years is the maximum period of service permitted for a non-executive director to be described as independent.
Seán FitzPatrick and Lar Bradshaw were what is called, interlocking directors - Seán FitzPatrick served on the board of the Dublin Docklands Development Authority where Lar Bradshaw was chairman and vice versa.
However, the board expressed its "complete satisfaction" that the independence of the directors was not compromised, notwithstanding these three breaches of best practice standards.
Management in the bank must have (or should have) known that the loans were to Mr FitzPatrick. Know-your-customer is a key requirement of money laundering regulations - that is why bank customers have to produce passports and utility bills when opening new bank accounts. Mr FitzPatrick must have had the assistance of one or more executives to move his borrowings to Irish Nationwide and back to Anglo Irish Bank each accounting year-end over an eight-year period.
This is bad for Ireland Inc. Everyone charged with the governance of public and public-interest companies has a duty to protect Ireland's reputation in world markets and confidence in its financial institutions for the good of all its citizens - none more than the financial regulator. It is, therefore, puzzling to learn that "warehousing" of Seán FitzPatricks borrowings in Irish Nationwide was discovered by financial regulator staff in January 2008, yet there was a delay of 11 months before a team of inspectors was sent to Anglo Irish Bank in early December 2008. Is this appropriately responsive to protect Ireland's reputation as a good place to do business?
Given that the office of the financial regulator knew about this transaction as far back as January 2008, why was it not raised during the all-night discussions in the Department of Finance in September prior to the introduction of the State guarantee scheme?
Another aspect I don't understand is why the financial regulator is reported as stating that it does not appear that anything illegal took place. Surely, at the very least, there is evidence of breach of the common law fiduciary duty for directors - that they do not put there own personal interests ahead of the company? Also, is not telling the truth in the financial statements an offence?
Seán Fitzpatrick has referred to Ireland's regulatory regime as "corporate McCarthyism". The New York Times dubbed Ireland "the wild west of European finance". Two very contrasting views!
In the golden days of the Celtic Tiger it was "light-touch regulation" all the way. But, are the risks associated with light-touch regulation justifiable? Does light-touch regulation safeguard the billions of funds invested in Ireland or will these funds be withdrawn to more reputable jurisdictions? Are the thousands of jobs in the financial services sector more secure by virtue of light-touch regulation? Are wealthy investors attracted to countries with a robust regulatory regime or with a light-touch regime?
In the final analysis, no laws, no rules, no regulations can prevent greedy, self-serving behaviour by company directors. All they can do is make such behaviour harder to engage in. Add to this, that greedy, self-serving people seek each other out. The old Irish phrase "Aithníonn ciaróg ciaróg eile" (one "beetle" recognises another) captures this aspect of corporate life beautifully.
Niamh Brennan is Michael MacCormac professor of management at University College Dublin, and is academic director of the Centre for Corporate Governance at UCD
This article appears in the print edition of the Irish Times
Bradshaw and FitzPatrick not only served together on the board of Anglo, which Bradshaw joined in 2004 – they were also both board members of the Dublin Docklands Developers Authority, which had a multi-billion budget to redevelop 1,300 acres in the faded docks area.


In Pennsylvania newspapers publish real-time deadly particle data, with explanations.
In August 2008 people were observed using hand-held instrumentation in the Poolbeg Area. The instrumentation used X-Rays to analyse local pollution, including heavy metals. The researchers claimed not to be funded by the EPA. Apparently the results have not been published. Why?
Monitors can provide data on PM 2.5, a fine air particulate linked to a variety of heart and lung ailments, in real time on an ongoing basis.
“By continually providing the level of PM 2.5, CAB and its partners are hopeful this will actually improve area resident’s health.
“If they see it’s high and don’t go out and exercise,
that should keep some people out of the emergency room,”
Benjey said.”
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There may be good scientists in EPA-Ireland. However, with the director level revolving doors between EPA-Ireland and the waste-to-toxins industry ... The Bush Administration threatens its own EPA scientists.
Directors at EPA-Ireland do not provide actionable public data on deadly particles (“PM2.5, PM1.0”). It appears this is their “proof” there is no problem, an agenda of curious benefit to their future or past employers in the Waste-To-Toxins business. Generators of PM2.5 and of PM1.0 pollution such as power stations and cement plants are not identified and quantified. Real time data is not published. Health studies are not done to reinforce the "you have no proof" Big Lie.
Apparently Covanta (Poolbeg & Luxembourg) & Covanta-Energy-Answers (Rathcoole & Virgin Islands) have hired an ex-EPA Director to “consult” with the government. Covanta wants two Waste-To-Toxins incinerators at Poolbeg & Rathcoole. Covanta has been fined for law-breaking (dioxins - at all plants in New Jersey). Tobacco companies have also hired 'consultants' from regulators. Do Drug Dealers hire ex-Gardai?
Cork Harbour was polluted with Chromium-6 when the ex-Director was at the EPA, allegedly. Apparently EPA-Ireland just issued a piece of paper. Is this deception? Have there been deadly consequences in Cork?
Clean air initiative in Carlisle
http://www.cumberlink.com/articles/2008/09/23/news/local/doc48d8df036b3b0762700325.txt

Should you immediately switch your bin collection to Panda? If you do nothing are you supporting the worms promoting DCC's Waste-To-Toxins incinerator which will degrade health all across Dublin?
Should you immediately remove all your assets from Anglo-Irish Bank? This includes cash and pension plan investments. If you do nothing are you supporting the worms wrecking Sandymount Strand and Dublin Bay?
Should you immediately tell BIFFO and John Gormley not to use taxpayer assets to bail out Anglo-Irish Bank? If you do nothing the increased charges on Ireland's National Debt will exceed the supposed cost savings gouged from old people's medical cards. That's if BIFFO doesn't turn Ireland-Inc into Iceland-Under-IMF-Administration-Inc.
Is Dublin City Council creating a monopoly of cash-flow for foreign Waste-To-Toxins corporations?
So far, DCC has spent in excess of €19,000,000 to promote a one-sided case benefiting foreign corporations in the Waste-To-Toxins business. Cynically, no money has been available to provide balanced public information. Who is working for the taxpayers in Dublin?
DCC's competitor Panda said the main reason the city council wants to re-monopolise the collection system is because DCC has entered into a contract to provide 320,000 tonnes of rubbish per year for the planned municipal waste incinerator at Poolbeg in Dublin.
MARY CAROLAN, Last Updated: Tuesday, October 28, 2008, 19:09
http://www.irishtimes.com/newspaper/breaking/2008/1028/breaking72.htm
A waste collection company has claimed before the High Court that Dublin City Council is seeking to “re-monopolise” the household collection service in the capital.
The claim was made by counsel for Nurendale Ltd, trading as Panda Waste Services, Rathdrinagh, Beauparc Business Park, Navan, Co Meath.
Panda is seeking a court order to overturn the Council’s decision altering the existing waste permit regime, under which some private collectors operate in the market, to one where collection is carried out by the local authority or a single collector appointed by the council.
Panda claims moves to alter the current regime is an abuse of the Dublin local councils’ dominant market position. The company is also seeking damages.
Opening the case, Martin Hayden SC, for the company said there was a deliberate decision by the city council to “re-monopolise” the waste collection market.
Up to 1996, all household waste in Dublin had been collected by directly employed local authority workers. After 1996, a licensing system was introduced allowing private firms to operate. A number of such operators, including Panda, got involved.
Mr Hayden said the main reason the city council wants to re-monopolise the collection system is because it has entered into a contract to provide 320,000 tonnes of rubbish per year for the planned municipal waste incinerator at Poolbeg in Dublin.
The company is asking the court to judicially review a decision by the council, on behalf of all of the city’s four local authorities, to vary the Dublin waste management plan. Panda claims the decision is essentially an attempt to prohibit the collection of waste by the private sector.
Mr Hayden said comments made in correspondence by assistant city council manager, Matt Twomey, showed that it was the intended there would be no private operators in the market.
The city council says that it is its intention that collection of household waste will be by a single operator, either the local authority, or as a result of a tendering process.
Panda Waste was set up in 1990 and employs 250 people. It has an annual turnover of around €50m and some 28,000 domestic customers in Dublin. In 2005, the company implemented a business plan in which it focused on the domestic waste collection market, particularly in Dublin. It competed in Dun Laoghaire, Fingal and South Dublin Council areas and bought the Smurfit Recycling plant in Ballymount.
The case before Mr Justice Liam McKechnie continues.
© 2008 irishtimes.com
What bags? What Baggage Charges?
One of the country's leading businessmen has written a scathing letter to Dublin's city manager slamming "inappropriate links" between council planners and developers.
And tycoon Dermot Desmond referred in his letter to meetings between city planners and developer Sean Dunne over the latter's skyscraper proposal for Ballsbridge.
Mr Desmond also criticised what he termed a five-year effort by Dublin City Council "to set the stage for intensive development" in the Dublin 4 suburb.
This "concerted" bid included proposals for landmark buildings, new apartment guidelines and a paper on high-rise development.
And he told the capital's top council official, John Tierney, that the local authority attempted to change the City Development Plan "by the back door" to facilitate builders.
Addressed to Mr Tierney, the letter was also sent to Environment Minister John Gormley and Dublin city councillors.
High-rise
One such councillor, Tom Stafford (Fianna Fail), told the Herald he agreed with much of what Mr Desmond said, in particular that the council is intent on following a high-rise policy.
Mr Desmond wrote: "I am on record, on a number of occasions, expressing my concern that development in Dublin is developer-led instead of being determined on proper planning and design principles."
He said "we now have real evidence that this is the case" following the recent Bord Pleanala hearings into Mr Dunne's plan for the Jurys/ Berkeley Court site and developer Ray Grehan's proposal for an adjacent piece of land.
"The sequence of events which unfolded demonstrated how Dublin City Council has facilitated the desire of developers to change the zoning, density and height guidelines applicable to Ballsbridge sites purchased for record amounts," Mr Desmond stated.
He added: "Arising from the An Bord Pleanala hearings, we now have copies of minutes of pre-application consultations between the developers and Dublin City Council.
"Clear markers were given at such meetings that parts of the proposed developments did not fall within the development plan. So the developers should have been asked to drastically reduce and alter their schemes.
"However, the worrying aspect is that planning officials at Dublin City Council were instead looking at other policy initiatives which would get around the development plan and facilitate development of the kind proposed for this triangle site in Ballsbridge."
He told the city manager "all of these pre-application consultations and the drafting of favourable policy papers ... took place on your watch".
Mr Desmond said "evidence of inappropriate links between planning officials and developers emerged before An Bord Pleanala".
"A serious conflict of interest arose when Jim Barrett, recently retired City Architect, arrived to give evidence as part of Sean Dunne's project team. Jim Barrett had attended pre-application consultations with the developers," he wrote.
A spokeswoman for the council said Mr Tierney would not be commenting as he is on leave and has not seen the letter.
- Cormac Murphy
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http://www.herald.ie/national-news/shockwaves-of-desmond-letter-start-council-row-1511444.html
He said that at the oral hearing it transpired Mr Dunne's architect "had brought models of a 32-storey tower, 37-storey tower and 40-storey tower to a meeting at Dublin City Council".
"Jim Barrett, city architect, suggested that the 37-storey was more 'elegant'," Mr Desmond said. He then "apparently made further suggestions concerning appropriate heights for other buildings which were ultimately reflected in the planning application".
Mr Desmond added: "While ultimately the planning authority refused permission for the 37-storey tower, it is clear that Jim Barrett was acting outside the development plan when even considering such tall buildings."
By Paul Melia
Monday October 06 2008
A LANDMARK court case could result in the controversial Poolbeg incinerator being shelved.
Private waste collectors Greenstar and Panda are to ask the High Court to stop Dublin City Council limiting their activities in the city, and if successful it could throw the whole financial model for the waste-to-energy plant into doubt.
The council wants to tender out household waste collection routes in the city, saying that the current free-for-all is not working and is causing pollution because of the large number of bin trucks operating.
It proposes to allow companies to compete against each other to win household collection contracts, giving city bosses control of the waste stream.
This is essential because the council has entered into a 'put and pay' arrangement with the company which will operate the incinerator.
The agreement guarantees that a set amount of waste is sent for thermal treatment every year, or the council must pay a financial penalty.
However, two of the country's biggest private operators have sought a judicial review of the new regulations, which will be held in the High Court at the end of the month.
If they win the case, the council cannot guarantee a waste stream, and the whole financial model justifying the 600,000 tonne a year plant will be thrown into doubt.
"All of the infrastructure is based on owning the waste stream," one industry source said yesterday. "Everything stems from ownership of the waste.
"Poolbeg is fraught with difficulty. It's built on a house of cards and if one falls, the whole thing comes tumbling down. Dublin City Council must own and direct the waste."
Dublin City Council were not immediately available for comment, but Greenstar said that while incineration had a role in waste disposal, there was "no flexibility" in the system.
"Incineration has a role as an end of life disposal facility," spokesman Jerry Dempsey said.
"The Poolbeg one is too big and in the wrong place. Why lock into a system that offers no flexibility for the next 30 years?" he said.
The incinerator, which is opposed by Environment Minister John Gormley, was granted planning permission last November.
- Paul Melia

Madam,
Whether the news that a Dublin Bay Task Force has been set up to deliver a "sustainable vision" master plan for the future use of the entire bay is good news or bad depends on a number of factors, including the composition, knowledge and real intent and purpose of the task force (July 17th).
Various proposals for the creation of a mini-Manhattan and the siting of an incinerator on the "Poolbeg peninsula" in Sandymount plus the infilling of Scotsman's Bay in Dún Laoghaire are the brainchildren of members of the task force. Environmental groups such as Sandymount and Merrion Residents' Association (set up 50 years ago to protect the south bay beaches), the Naturalists' Field Club, seal and dolphin groups, together with fishing and diving interests, amongst others, do not appear to have been consulted or included.
The need for hydrological, oceanographic and morphology studies has not received a mention. Relevant EU environmental directives are still being ignored as I write.
Unless and until the ecological value of the bay (sea and coastal lands) to our capital city and country is given precedence I will be forced to conclude that the main purpose of the task force will be to promote commercial development and the loss of Dublin and Dún Laoghaire harbours.
It would be nice to be proven wrong.
Yours, etc,
LORNA KELLY,
Castle Park,
Sandymount,
Dublin 4.
The Purple & The Pinstripe.
BANANA REPUBLICAN BORD Pleanála approved plans to redevelop the Clarence Hotel in Dublin despite a strong recommendation by one of its senior planning inspectors that permission be refused because of its
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