Skip to main content

They Presided Over The Crash...

They presided over the crash -- but no one was ever fired.

An "endemic culture of rewarding failure" in Ireland has meant that not one person in the Department of Finance, the Central Bank or the Financial Regulator's office has been sacked for their role in the worst financial and economic crisis in history.

While their former political masters in Fianna Fail were slaughtered at the polls in February, it has been confirmed to this newspaper this weekend that not a single official or adviser was laid off for their failure either to adequately prepare for the crash, or for their failure to deal swiftly with it when it happened.

"Nobody in the Department of Finance has been fired since January 2008," a spokeswoman told the Sunday Independent.

Friends First chief economist Jim Power said that while many of those who were in key positions during the crash have since moved on or retired, their departure has come at a significant cost to the taxpayer.

"There is an endemic culture here in Ireland of rewarding failure, and it is not restricted to the public sector. Look at Brian Goggin in Bank of Ireland."

Mr Power said the fact that no one has been fired is a damming indictment of how things are done here and the taxpayer always pays to remove underperforming people.

"That no one has been fired is typical of how things are done in Ireland, but there has been a clear-out of those who underperformed. The only thing is they have all been paid off handsomely for stepping down," he said.

Mr Power did say that there seemed to be a move to promote younger promising talent to senior positions within the civil service.

A spokeswoman for the Central Bank and the Financial Regulator said that there has been a significant restructuring of the organisation since 2008.

The present governor, Patrick Honohan, replaced John Hurley while Matthew Elderfield was brought in from Bermuda to replace the widely disgraced regulator Pat Neary. Both Mr Neary and Mr Hurley received substantial pay-offs to depart.

Mr Neary, who retired in 2008, got a massive €630,000 pay-off. This was despite his office having knowledge about the secret directors' loans of up to €129m to ex-Anglo Irish Bank chairman Sean FitzPatrick for at least 11 months.

Under the terms of his contract, Mr Neary will also receive a guaranteed public service pension of almost €143,000 a year, €2,750 per week, for the rest of his life.

Last year, the Department of Finance's top official at the time of the bank guarantee received a pension top-up worth €725,000 in added years on his retirement earlier this year, the Sunday Independent can reveal.

As a result, David Doyle, who stepped down at the age of 60 at the beginning of February 2010, walked away with an initial golden handshake worth almost €600,000 and has seen the value of his pension increased significantly.

His top-up and severance payment are among a number included in a €10.5m pension lump sum payout to top civil servants by all government departments since 2005.

Report by DANIEL McCONNELL - Sunday Independent

Popular posts from this blog

Property Crash Homes For Sale...

Hundreds of repossessed homes in Ireland to be sold by auction... UK property consultancy Allsop to hold auction in April at Dublin's Shelbourne hotel: Flats in Ireland that could have fetched €150,000 in the Celtic Tiger years are to be put on the market for as little as €25,000 (£21,000) in the country's first ever mass auction of repossessed homes. And, in a sign of how wide the property crash is, the latest item to turn up in liquidation sales in Dublin is a job lot of 15 cranes, including a pair towering over Anglo Irish Bank's half-built headquarters in the city's docklands. "Tower cranes were among the most sought-after heavy plant and machinery 10 years ago," Ricky Wilson of Wilsons Auctions says. "You couldn't buy them quick enough. Now they are left idle for two or three years on sites." He has 15 cranes worth €500,000 going on sale on 26 March, with German, Dutch and Polish buyers expressing interest. But it is the auction ...

Young, Irish And Out Of Here...

As the government continues to pump billions into our much discredited banking system, many Irish people unable to find work here are facing into a future outside of this country. John Downes, News Investigations Correspondent, spoke to some of the new Irish diaspora about their recent experiences of emigration... By any stretch of the imagination, they were a startling set of figures, prompting echoes of a past which we thought we had left behind. According to ESRI data released last week, we can expect net emigration of 60,000 in the year to this April – and a further 40,000 by April 2011. That's almost 1,000 of our best and brightest leaving every week. Yet the ESRI's predictions are simply the latest – if most stark – indications of a return to mass emigration among Ireland's unemployed, as the downturn has continued to take its toll. In September, for example, the Central Statistics Office revealed that Ireland witnessed a return to net emigration for the first time si...

As Featured On Dublin Postcards, Ad's, U2 Video...

I see in the Irish Independent today an item concerning a favourite, Dublin landmark, of mine... "THEY have featured in numerous postcards and a very famous Guinness ad, but perhaps their most important cameo appearance came when they featured in U2s 'Pride (In The Name Of Love)' video. However, Dublin City Council does not believe the Poolbeg chimneys are iconic enough to place on their Record of Protected Structures. Following a request from Cllr Dermot Lacey (Lab) to have the landmark ESB chimneys placed on the protected record, city councillors heard that city planners had conducted a survey, history and full assessment of the chimneys. They concluded from this that while the Poolbeg chimneys were considered to be of a certain level of architectural, social and historical significance, they were not of sufficient value within the meaning of the Planning and Development Act, 2000. Complex The twin red and white chimney stacks measure 680 feet in height and were construc...