Anglo Irish Bank’s chief internal auditor told an Oireachtas committee tonight he knew knowing former chairman Seán FitzPatrick had taken out loans from the lender but did not realise the extent of them until late last year.
Revelations that Mr Fitzpatrick concealed more than €87 million in loans from shareholders and the public over eight years prompted his resignation in December.
Under questioning at the Oireachtas Joint Committee on Economic Regulatory Affairs, Walter Tyrell claimed he knew of the scale of the borrowings only in late November. But he later told Independent Senator Shane Ross he would have been aware that Mr Fitzpatrick had taken out loans.
"I knew Mr FitzPatrick was a borrower of the bank, yes," Mr Tyrell said.
Mr Tyrell, who was appointed head of Anglo's internal audit unit in 2005, was being grilled by TDs and Senators from the Economic and Regulatory Affairs Committee about the scandal-hit institution.
Mr Ross asked if the internal audit head would have known of the size of Mr FitzPatrick's loans.
"I would have seen credit committee approvals going through for Mr FitzPatrick like I would for every other borrower of the bank," Mr Tyrell said.
Mr Ross replied: "So the answer is yes?"
Mr Tyrell answered: "At any particular time, I would have, yes."
He claimed he never questioned Mr FitzPatrick's borrowings until late November.
"Up until November/December 2008 there were no issues in relation to Mr FitzPatrick's loans that were in my mind," Mr Tyrell said.
"Mr FitzPatrick's loans were in the loan book like all other loans, they went through the normal course of approval."
Anglo's external auditors Ernst Young were due before the Oireachtas Committee later this week but declined the invitation yesterday. "We have received legal advice that confirms our own belief that to appear before the Oireachtas Committee at this moment in time would not be appropriate," a spokesman for Ernst Young said.