Former banker becomes chairman of CRH

Building materials group CRH has appointed the former chief executive of Bank of Ireland as its chairman-designate. Mr Pat Molloy will take over from the current chairman, Mr Tony Barry, who retires next May, having served two three-year terms.

Mr Molloy's appointment, which comes just two years after he joined the CRH board, is perceived by the market as a clear move by CRH to sever its links with the Ansbacher accounts, the offshore banking arrangement operated by a former CRH chairman, the late Mr Des Traynor, from his office in the building.

Mr Barry, CRH chief executive in the 1980s, said last September that money was transferred to Ansbacher accounts in the Cayman Islands between 1989 and 1995 for the benefit of two of his adult children who were then living outside the State, although he emphasised the source of these funds was "fully disclosed after-tax income".

Another former CRH chief executive, Mr Jim Culliton, was also named in relation to the Ansbacher accounts and, according to a High Court affidavit, eight of the 15 CRH directors in 1987 were beneficiaries of the Ansbacher accounts operated by Mr Traynor.

Later, three CRH board directors at the time (out-going chief executive, Mr Don Godson, finance director, Mr Harry Sheridan and former finance director, Mr Jack Hayes) publicly denied owning Ansbacher accounts.

In early October, CRH's audit committee decided to commission an independent review of all compliance and disclosure requirements relating to its chairman and board of directors. This review is ongoing.

Mr Molloy, a career banker with Bank of Ireland, did not join the CRH board until he retired from the bank and, as a result, has not been linked to the Ansbacher revelations. He is highly regarded in banking circles and is credited with turning around Bank of Ireland after he took over as chief executive in 1991.

CRH also confirmed yesterday that Mr Liam O'Mahoney would become chief executive on January 1st when Mr Godson retires.