CRH secretary denies she knew about visitor

Executives of one of the largest public companies in the country were unaware that offshore banking business was being carried…

Executives of one of the largest public companies in the country were unaware that offshore banking business was being carried out by Mr Desmond Traynor from its offices, it was claimed yesterday.

Directors of Cement Road stone Holdings had no knowledge that Mr Traynor, non-executive chairman from 1987, was using the premises for Ansbacher clients: keeping files, using notepaper and directing replies to the address at the company's registered office in Fitzwilliam Square, Dublin, the tribunal was told.

Nobody queried Mr Padraig Collery, formerly of Guinness and Mahon, who had a key to the premises and who, even after Mr Traynor's sudden death in May 1994, went to the office after working hours.

Yesterday the present chairman of CRH plc, Mr Anthony Barry, and Ms Angela Malone, company secretary since 1995 and at the time assistant company secretary, gave evidence.

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Mr Barry agreed with Mr John Coughlan SC, for the tribunal, that had it known Mr Traynor was using the premises in that way, the company would have deplored it.

Counsel said Mr John Furze, director of Guinness Mahon Cayman Trust, had visited the office once a year. They were also aware from the evidence of Mr Denis Foley TD that he had attended the office.

Mr Barry said that when Mr Traynor died his son came to ask permission to remove files and personal effects, but it was some months before this happened. He said he had no knowledge of the continued use of the CRH office after Mr Traynor's death.

Mr Coughlan said the tribunal would be making recommendations at the end and would like the view of the board of CRH, a substantial public company, of what safeguards would be necessary to ensure that this type of activity did not occur again.

Mr Barry said: "We will be very pleased to co-operate in full with the tribunal."

Ms Malone said she recollected being told that if she was working late she might meet "Padraig", who might be in to do some work for the chairman. She did not know his surname but understood he had a key and access to the building. But knowing he was authorised by the chairman, she did not pay any heed to it.

Ms Malone said the front door was kept locked and there was an intercom system. She was aware that people called to see Mr Traynor, but paid no particular heed.

"I think it was said in the context that if I saw somebody that I didn't know it was just to be aware that Padraig had a key to the building and he would be there after hours," Ms Malone said. She could not recall who told her.

She understood Mr Collery operated the computer in Mr Traynor's room, but never saw him. She saw nothing suspicious in that. The computer was Mr Traynor's personal computer and was not linked to the CRH system.

She had no suspicions, nor heard of any suspicions, that anything illegal or untoward was happening.

"It was my belief that anything being done was Mr Traynor's personal business, personal to him," she said.

Mr Coughlan said: "But if you thought there was a blackguard there doing something improper, it might be his personal business but that would be a matter which would cause concern to the secretary of the company."

"It would, but that wasn't the case," she said.