FORMER ANGLO Irish Bank non-executive director Gary McGann has resigned the chairmanship of the State-owned Dublin Airport Authority (DAA) but indicated that he plans to stay on as chief executive of Smurfit Kappa, the heavily indebted packaging firm.
Another former non-executive member of Anglo’s board, Anne Heraty, is understood to have informed the Government that she is considering her position on two State boards: Bord na Móna and Forfás.
Ms Heraty resigned on Monday as a director of the Irish Stock Exchange, one of several bodies conducting investigations into Anglo’s business.
With the Garda fraud squad now involved in an inquiry into events at Anglo in the lead-up to its controversial nationalisation last month, the continued presence on State boards of two former bank directors was widely held in Government circles to be untenable.
One of the most senior business people in Ireland and a former president of employers’ lobby Ibec, Mr McGann was chairman of the bank’s audit committee in its troubled final fiscal year on the stock exchange.
Anglo is under investigation on at least three fronts: for concealing in its books director’s loans for tens of millions of euro to former chairman Seán FitzPatrick; for “customer” lodgements of billions of euro from Irish Life Permanent prior to its fiscal year-end; and for lending €451 million to a group of 10 businessmen who secretly acquired a 10 per cent stake in the business from billionaire Seán Quinn.
Mr FitzPatrick was himself chairman of Smurfit Kappa until he resigned in December when his Anglo loans were made public.
Asked whether Mr McGann planned to continue in his position at Smurfit Kappa, a spokesman said that there would be “no comment” beyond a press release issued on his behalf last evening.
In that statement, Mr McGann implicitly indicated that he plans to keep his job at Smurfit Kappa.
“I regret having to take this decision but in the current global economic downturn, I need to focus my time and energies on my principal role as chief executive of Smurfit Kappa group,” he said.
“My decision has also been influenced by my former non-executive directorship of Anglo Irish Bank. At all times, I acted with honesty and integrity in this role, but given recent commentary about events at the bank, my decision today is made in the best interests of the DAA and of Smurfit Kappa group.”
This struck a change of tone to a fortnight ago when he rebuffed demands from Ryanair that he stand down from the DAA in light of the Anglo affair, demands the airline reiterated yesterday.
“I’m appointed by the shareholders. I continue to be chairman of the DAA and life goes on,” Mr McGann said at the time.
Appointed in October 2004 in succession to former Aer Rianta chairman Noel Hanlon, Mr McGann’s term of office was due to lapse next September. He was known in the early phase of his chairmanship to conduct executive meetings on Saturday mornings, meetings which all top managers were obliged to attend.
Mr McGann remains a non-executive director of United Drug. There have been no public indications that his directorship in that company is under review.
Minister for Transport Noel Dempsey, who has accused those involved in wrongdoing at Anglo of “economic treason”, said he recognised Mr McGann’s “very significant contribution” to the DAA. “It is with regret that I have today accepted Gary McGann’s offer to resign from the board of the Dublin Airport Authority.”
The DAA acknowledged his “outstanding contribution” and thanked him for his vision, expertise and exceptional personal commitment to the business.
