‘We all wanted to hear from Drumm about Anglo . . . but not on his terms’

David Drumm has led the Irish authorities a merry dance since moving to the United States in mid 2009, avoiding their attempts to question him in connection with various criminal investigations relating to Anglo Irish Bank, which he led in the years before the financial crash in late 2008.

Now he's making mischief with the Oireachtas Banking Inquiry, creating a schism in its ranks over whether or not he should be allowed give evidence by video link from Massachusetts.

There was even talk towards the end of last week of the inquiry collapsing with Fine Gael's Eoghan Murphy and Michael McGrath of Fianna Fáil issuing strong statements to the effect that they would have nothing to do with hearing Drumm by video.

Talk of a collapse was probably exaggerated. With the finish line now in sight– just six more days of public hearings are slated – the committee was unlikely to do anything that would result in the inquiry falling over.

DPP concerned

Accepting Drumm’s evidence by video was always a questionable prospect given that he has persistently refused to co-operate with gardaí on investigations into Anglo.

The committee will formally decide on the Drumm issue today but the matter appears to be cut and dried. Its legal team has rejected the proposal, with the Director of Public Prosecutions concerned about such a hearing.

The inquiry was obliged to call Drumm but the reality is that if he had agreed to return to Ireland and attend the committee, he probably would have been detained by gardaí for questioning and the DPP would likely have intervened to prevent him giving evidence as it could prejudice pending legal cases.

Anglo’s former chairman Seán FitzPatrick and other former executives at the bank have already been given passes by the DPP on similar grounds.

It now remains to be seen if Drumm’s witness statement is accepted and published by the inquiry.

Media reports suggest he has contradicted evidence given by former taoiseach Brian Cowen in relation to a dinner hosted by Anglo in April 2008. Under oath, Cowen has testified that it was a social occasion and no business was discussed.

Drumm's position is understood to be that he sat beside Cowen at the dinner, they discussed banking issues and he asked Cowen to intervene with the National Treasury Management Agency on depositing funds with Anglo.

He is thought to be ready to accept responsibility for his role as chief executive of the bank, and to acknowledge the difficulties suffered as a result of the financial crisis by both Anglo staff and the public.

But how much store can we place in what Drumm has so far told the committee?

Damning assessment

In a ruling on January 6th, US Bankruptcy Court Judge Frank Bailey was damning in his assessment of Drumm’s evidence and conduct in relation to a case brought by

Irish Bank Resolution Corporation

and his bankruptcy trustee.

They had sought to block Drumm’s discharge from bankruptcy on the basis that he transferred assets to his wife to keep them out of the reach of his creditors.

Judge Bailey found Drumm “not remotely credible” and said his conduct was both “knowing and fraudulent”.

“Drumm’s statements to this court were replete with knowingly false statements, failures to disclose, efforts to misdirect, and outright lies,” he added.

The judge’s determination ran to 122 pages and he found against Drumm in 30 of the 52 counts.

We all wanted to hear from Drumm about Anglo’s demise, but not on his terms. He has messed with the State and taxpayers for long enough and the committee is right to reject his video offer.