Anglo prosecution may take two years

IT COULD take up to two years to complete any criminal prosecution arising out of the Director of Corporate Enforcement’s investigation into the affairs of State-owned Anglo Irish Bank, the Commercial Court heard yesterday.

Paul O’Higgins, for the director, Paul Appleby, said no charges had been brought, and it was likely to be “a year or two” before any prosecution was completed, including any appeal which may be taken.

Mr Justice Peter Kelly heard the board of Anglo, following concerns expressed by the court and Minister for Finance Brian Lenihan, had agreed to limited disclosure of electronic documents seized by the director, over which it previously asserted privilege.

The electronic material and data relate to some 20 employees of the bank, and covers the period January 2008 to February 2009.

The judge was dealing yesterday with procedural matters related to the conduct of the director’s investigation into Anglo.

Last month, the court heard the Minister had urged the bank to look again at whether it should maintain its assertion of legal professional privilege (LPP) over seized electronic documents. The Minister’s intervention came after Mr Justice Kelly expressed concern the LPP claims were delaying the director’s investigation.

The director’s applications arise out of amended company law enacted to address legal issues relating to search warrants and claims of LPP. The Anglo investigation is into possible offences under the Companies Acts involving the giving by a company of financial assistance for the purchase of its own shares.

Shane Murphy, for the director, told the court the Anglo board had considered the Minister’s request and offered limited disclosure. This would entitle gardaí and experts access to the documents, including for the purpose of a prosecution, but would not allow for disclosure to third parties contemplating or already taking civil action against the bank.

Mr O’Higgins said he was concerned such limited disclosure could be meaningless if it meant it could not be used as part of any prosecution by the DPP.

Mr Justice Kelly said the offer from the bank would substantially advance the investigation, and he would grant an order on the terms of limited disclosure. He gave the parties a week to agree the wording of that order.