Political Corruption in the Irish Republic - an His- Torical Reminder
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Political Corruption in the Irish Republic - An His- torical Reminder Brian O’Boyle Introduction tracker mortgage led him to have a stroke in 2013. His wife Claire has also suffered, The government have announced new losing the power of her speech and suffer- plans to beef up the law around white col- ing a mental breakdown in 2015.3 These lar crime. Two Bills will soon be brought crimes should now be investigated and before the Dáil to disband the Office of those found guilty should be put in jail. the Director of Corporate Enforcement This is not what the government have in (ODCE) and create tougher measures for store, however. corporate crime and bribery in the pub- lic sector.1 The backdrop to this is the Speaking in the wake of calls for a failure of the ODCE to successfully in- criminal investigation, the Taoiseach, Leo vestigate the former Anglo Irish Bank Varadkar, claimed that there is a big dif- Chairman, Sean Fitzpatrick. The Fitz- ference between ‘ breach of contract and patrick case collapsed earlier this year criminal fraud’ and that it isn’t the gov- when ODCE solicitor, Kevin O’ Connell, ernments place to instruct the Gardaí in shredded documents that were important their operations.4 Varadkar recently had to the case. This allowed Fitzpatrick to no problem in calling for heavier penal- slip the net, as the judge ruled the case ties for welfare fraud, but when the peo- against him to be ‘biased’ and ‘partisan’.2 ple involved are banking executives he The ongoing tracker mortgage scandal is suddenly leaps to their defence. Fianna also a factor, with the government anx- Fáil have been no better, disgracefully ious to placate an angry public. The Irish protecting the government through their bankers have acted appallingly. Tens of Confidence and Supply Agreement. One thousands of people have been moved off reason for this is surely the appalling tracker mortgages by banks who illegally record of both main parties on bribery put their customers onto higher cost vari- and corruption. Time and again senior able rates. This made the banks around figures in Fianna Fáil and Fine Gael have e600 million in extra profits, but the taken bribes and turned a blind eye to costs to their victims have been incalcula- corporate corruption. This was particu- ble. Speaking to the Oireachtas Commit- larly true during the last quarter of the tee on Finance in October, Thomas Ryan 20th century, with the Irish state set- recounted how the stress of losing his ting up a series of ‘Tribunals’ as a way 1‘New government measures to tackle white collar crime’ irishtimes.com/news/politics/new- government-measures-to-tackle-white-collar-crime-1.3273473 2‘Sean FitzPartrick acquittal raises questions for key State agencies’ irishtimes.com/ news/crime-and-law/se%C3%A1n-fitzpatrick-acquittal-raises-questions-for-key-state- agencies-1.3095172 3‘People have killed themselves over tracker mortgage rate scandal, victims say’ independent.ie/breaking-news/irish-news/people-have-killed-themselves-over-tracker- mortgage-rate-scandal-victims-say-36220624.html 4‘Varadkar pours cold water on calls for a criminal investigation into banks over tracker mortgage scandal’ independent.ie/irish-news/varadkar-pours-cold-water-on-call- for-criminal-investigation-into-banks-over-tracker-mortgage-scandal-36264145.html 16 of avoiding criminal prosecutions. The taken bribes and patronage payments findings of these investigations were of- from businessmen including the financier ten shocking, moreover, with the Mahon Dermot Desmond, the hotelier P.V. Doyle Tribunal concluding that ‘ corruption af- and the retailer Ben Dunne. Despite this, fected every level of Irish political life’ and his colleagues in Fianna Fáil continued that ‘ those with the power to stop it to insist that Haughey was an excellent were frequently implicated in it’.5 This statesman, albeit with some unfortunate essay recounts the events that led to this personality flaws. They also sought to conclusion, focusing on the main players distance the party from the worst excesses in the period between Charles Haughey of Haughey’s activity, painting him as an and Bertie Ahern. Despite the repetition errant rouge in an otherwise heathy sys- of a self-serving establishment narrative, tem. Neither claim stands up to interro- Ireland was not afflicted by a ‘few bad gation. apples’ that have since been eradicated. Rather, it was characterised by a model of capitalist development that was wide open to corruption and remains in opera- tion today. Corruption in the Haughey Era In January 1980, Charles Haughey made an important address to the nation. As the incoming Taoiseach, he felt it was his duty to warn his viewers that ‘ Ireland was living far beyond its means’ and that ‘ Charlie Haughy delivering his infamous ‘we ae living way as a community we would have to tighten beyond our means’ speach our belts’.6 The first part of this state- ment certainly applied to Haughey him- self. During the 1980’s, Haughey lived in The first indication of the systemic a palatial mansion in Kinsealy, North Co. nature of Irish corruption was its scale. Dublin, replete with hired staff costing Over the course of his career, Haughey e5,000 per year. He also had a yacht, a amassed the equivalent of e45 million in thoroughbred stud farm and his own per- corruption payments or a staggering 171 sonal island.7 This should not have been times his official salary.8 The magnitude possible on an annual salary of £7,000 a of this wealth points to endemic corrup- year - and it wasn’t. Over the course of tion far beyond ‘a few bad apples’ as his career, Haughey was found to have an array of businessmen paid for favours 5F. Connolly. Tom Gilmartin. The Man Who Brought Down a Taoiseach and Exposed Greed and Corruption at the Heart of Irish Politics. Gill and MacMillan, 2013, p. 258. 6‘Tighten Your Belts - High-living Charlie To the Electorate’ independent.ie/business/budget/ tighten-your-belts-highliving-charlie-told-electorate-26798793.html 7F. Connolly. Tom Gilmartin. The Man Who Brought Down a Taoiseach and Exposed Greed and Corruption at the Heart of Irish Politics. Gill and MacMillan, 2013, p.190. 8‘Moriarty Tribunal: Haughey Stole £45m’ independent.ie/irish-news/moriarty-tribunal- haughey-stole-45m-26352058.html 17 at the top of society. A second indica- after, however, with Des Traynor tasked tion was the political response of Official with facilitating dodgy payments from Ireland. Despite Haughey’s financial af- business leaders into Haughey’s bank ac- fairs becoming public knowledge during counts.12 Overtime, Sam Field Cor- the Moriarty Tribunal, the Revenue Com- bett was also encouraged to move from missioners decided not to pursue him for Haughey-Boland into his own Manage- £6 million in unpaid taxes or for any ment Investment Services firm to ‘supply of his assets.9 This decision, reached registered companies, the maintenance of in 1998, mirrored an earlier one by the share registers, the filing of accounts and Director of Public Prosecutions not to so on’.13 This helped to create the nexus charge Haughey with any crimes, despite of developer’s, accountancy and political his flagrant, and repeated, abuse of the elites that still characterises Irish capital- law. Instead, the Irish elites supported ism today. Property developers were to Haughey to the bitter end, even afford- become particularly close to the Fianna ing him the honour of a state funeral. A Fáil party for a number of reasons. third indication comes from an insider ac- In the first place, the state controlled count from the son of one of Haughey’s planning and rezoning laws that could principal backers-Matt Gallagher. Speak- transform sites that were worth next to ing to the investigative journalist, Frank nothing into prized assets for major de- Connolly, in the 1990’s, Pat Gallagher ex- velopments.14 Being on the inside gave plained how a group of successful Irish property developers a major advantage in businessmen had agreed amongst them- this regard, usually achieved by bribing selves that Haughey would become their politicians. Added to this, construction ‘inside man’.10 Starting life as a corpo- was a relatively sheltered sector, making rate tax accountant, Haughey set up his it more likely that domestic capitalists own firm with Harry Boland - the son of would succeed. For this reason, prop- a Fianna Fáil government minister Gerry erty developers were more likely to be in Boland - in the early 1950’s. the ‘old boy’s network’ than their coun- This gave him immediate access to the terparts in industry and manufacturing. moves of shakers in Irish society and with Finally, the state itself spent billions each the help of Des Traynor and Sam Field year on various construction and mainte- Corbett, Haughey began to forge the nance projects. Having the right polit- links between business and politics that ical connections increased one’s chances were to become his trademark. To create of getting contracts for schools and hospi- the environment in which Irish business- tals. Meanwhile, the state was also happy men could compete with the old money of to lease most of its own official buildings the ‘Anglo-Irish’ it was soon decided that (department buildings for example) from Haughey would himself move into poli- private landlords. For each of these rea- tics.11 The ‘Boss’ would need to be looked sons, property developers were as anxious 9F. Connolly. Tom Gilmartin. The Man Who Brought Down a Taoiseach and Exposed Greed and Corruption at the Heart of Irish Politics. Gill and MacMillan, 2013, p.266. 10C.