Accountancy regulator seeks to widen inquiry into Anglo

AN ACCOUNTANCY watchdog has asked former Comptroller Auditor General John Purcell to widen his inquiry into Anglo Irish Bank to include the €7.45 billion in deposits transfers between the bank and Irish Life & Permanent.

The regulatory board of the Institute of Chartered Accountants in Ireland (ICAI) appointed Mr Purcell last month to investigate matters at Anglo to see whether there were any breaches of its rules by members.

The Complaints Committee of the Chartered Accountants Regulatory Board had already asked Mr Purcell to examine issues surrounding directors’ loans and other matters at Anglo.

Mr Purcell has now been asked to extend his investigation to examine other issues, including the short-term deposits lodged by Irish Life & Permanent through its subsidiary, Irish Life Assurance, with Anglo last September.

He will also examine loans of €451 million provided by Anglo last year to a group of 10 customers to buy 10 per cent of the bank’s shares indirectly held by businessman Seán Quinn.

Mr Purcell will also investigate the performance of the bank’s auditors, Ernst Young.

The deposits from Irish Life & Permanent were placed with Anglo before its accounting year-end on September 30th, and withdrawn just a few days later.

The lodgements flattered Anglo’s balance sheet following dramatic withdrawals of money during September when depositors grew concerned about the financial stability of the bank.

The Government has said that the transfers may have created a “false impression” about the financial health of the bank.

Irish Life & Permanent chief executive Denis Casey and finance director Peter Fitzpatrick resigned last month over the deposits. Anglo lost deposits of €10 billion in one week last September.