R2 THE IRISH TIMES ¤1.60 (incl. VAT) 80p Northern Ireland. Friday, May 26, 2006 www.ireland.com DIXIE CHICKS HAVE NO REGRETS Top 1000 companies ABOUT TAKING ON BUSH N TheTicket DEALING WITH DUNNES: THE WHELAN A special supplement on the winners and losers FOODS CASE N Business This Week NewsDigest Disgraced RHA EXHIBITION: portrait of artist James Hanley Bad debts Thousands greet endanger pope on arrival Enron some for Polish visit credit Pope Benedict XVI was given a thunderous welcome when he arrived in Warsaw yesterday bosses face unions and told Poles he had come to follow in his predecessor’s footsteps and “breathe in the atmosphere of faith in which you live”: page 11 Arthur Beesley, Senior Business Correspondent lifetime A confidential report for the Irish EU rules to end State aid League of Credit Unions has warned that some of its 530 credit for firms in Dublin unions will probably go out of busi- ness because clients are not The Government will no longer be able to give repaying their loans. State aid to companies setting up or behind bars In spite of the warning from the expanding in Dublin and surrounding counties leagues own rationalisation com- from next year, following the introduction of mittee, the body said yesterday that stiffer European Union rules: page 9 the three million people who have ¤12.6 billion in savings with the Former employees celebrate credit union movement have no HomeNews reason to be concerned about their after pair convicted of fraud funds. Vetting checks: Thousands of new teachers, “They should not be worried care-takers and other staff with access to Denis Staunton, lion of debts had been hidden in about their money at all,” said the children in the education system will face in Washington secret accounts to protect the firms leagues executive manager, Pat vetting checks by the Garda from this core balance sheet. Enron had more Fay. A member of the committee September: page 6 Former Enron bosses Kenneth Lay than $68 billion in market value himself, he said the league had an and Jeffrey Skilling face a lifetime before its bankruptcy wiped out insurance fund to protect clients Marriage case: Maura behind bars after a Texas jury more than 5,000 jobs and at least $1 funds and said no person ever lost O’Shea, a divorced found them guilty of fraud and con- billion in retirement funds. money in a credit union. woman, and her former spiracy in one of the biggest corpo- The jury concluded that Lay and However, the report said the cur- husband’s brother, who rate scandals in American history. skilling had repeatedly lied to cover rent degree of delinquency – the have been in a 20-year Lay was found guilty of all six up accounting stratagems and failure to repay loans – in some relationship, have counts against him and Judge Sim failing ventures at Enron. Jurors credit unions increased the risk to brought a challenge to Lake also convicted the Enron rejected Skillings claim that no the movement in terms of its “poten- laws which prevent founder on separate charges of fraud occurred at Enron other than tial impact” on the insurance fund, them marrying while the bank fraud and he could face up to that committed by a few executives known as the Savings Protection woman’s husband is 165 years in prison. Skilling was in secret side deals, and that hostile Scheme. still alive: page 4 found guilty of 19 out of 28 charges media coverage and a nervous It cited a 2003 analysis which said of fraud, which could lead to a sen- market combined to bring down the the ratio of loans not being repaid Unions warn on pay deal: Unions are tence of 185 years in prison. company. was in breach of the leagues own determined to secure a new national pay but The verdict came after only a Former Enron employees target in 72 per cent of 448 credit will not do so “at any price”, the leader of the week of deliberations following a reacted with delight to the verdict, unions surveyed. State’s biggest public sector union said trial that lasted nearly four months. which Deborah Perrotta, who In a survey for the committee, yesterday: page 5 Lay clutched his wifes hand as she worked as an administrative almost half of the credit unions that sobbed while the verdict was read assistant in the company, described were in breach of the target indi- but Skilling remained impassive. as fantastic. cated that they had no or limited dif- BusinessNews “We fought a good fight. Some “Its a victory to show that corpo- ficulty with regard to controlling things work and some things dont. rate America cant get away with delinquency. “This is worrying IDA enlist Bono: IDA Ireland has enlisted the Obviously, Im disappointed. But misleading the public and because these credit unions are support of Bono, the U2 singer, and the artist thats the way the system works,” employees for their own personal either ignoring their delinquency Louis le Brocquy in a 14 million drive to market Skilling said as he left the court- gain,” she told CNN. problems or are not aware of them,” Ireland as a prime business location for US house in Houston. Debra Johnson, another former the report stated. multinationals: Business This Week Both men have been ordered to Enron employee, said the verdict “With decreasing trends in loan post a $5 million bond and Lay has was about being fair to ordinary growth, increasing delinquency and An Post site sold: Two Dublin property investors been told to hand in his passport to working people. increasing direct competition, it is have paid 1107 million – 127 million above the the court pending sentencing on “Skilling and Lay thought the not unreasonable to think there will guide price – for an apartment and office site at September 11th. Lawyers for both money, the power was everything. probably be some credit union fail- the Red Cow Roundabout on the N7/Naas Road Lay and Skilling said they would This will let executives at other cor- ures in the coming years.” in west Dublin: Business This Week appeal the verdicts. porations know that it can happen Artist James Hanley RHA with a portrait of himself by photographer Amelia Stein RHA, which is part of Credit union risk: Business This Once Americas seventh largest to them. This is a milestone. And this year’s 176th RHA Annual Exhibition in Dublin from May 30th to July 8th. Photograph: David Sleator Week company, Enron collapsed after it its well deserved. We waited long WorldNews emerged that an estimated $40 bil- enough. Im smiling as I talk to you. I wish Id been able to be there,” she businesses and investors alike. Immigration Bill: The US senate was poised said. “It is a victory for all Americans last night to approve a sweeping overhaul of The Bush administration also whose jobs and economic security immigration laws that would allow millions of welcomed the guilty verdicts and depend on the integrity of our cap- illegal immigrants, thousands of whom are White House spokesman Tony ital markets. The verdict makes Irish, to remain in the country: page 12 Snow congratulated the Justice clear that high-level corporate exec- Department and prosecutors on utives who deceive the investing Possible release: The securing the convictions. public for personal gain will be held first UN official to visit “The administration has been fully accountable,” he said. Burma in two years said pretty clear theres no tolerance for The trial pitted former col- he had asked the corporate corruption and, further- leagues against one another. The military government to more, the Justice Department has government had secured plea deals release opposition been going aggressively after those with, among others, the former leader Aung San Suu who are involved in corporate cor- finance chief Andrew Fastow, who Kyi, and that it may be ruption,” he said. will serve a slimmed down sen- ready to consider it and The Enron trial was the most tence of 10 years in prison after also to re-engage with high-profile case in a succession of admitting that he helped orches- the world: page 13 scandals that have rocked corpo- trate the fraud, skimming off $45 rate America in recent years, which million for himself in the process. have seen executives from such Among the governments other SportsFriday giants as WorldCom and Tyco sen- star witnesses was Sherron Wat- tenced to lengthy jail terms. Christo- kins, the mid-ranking accountant Golf: Ireland’s Peter Lawrie trails the leaders pher Cox, chairman of the Securi- whose warnings internally had by one shot after an opening round of Kenneth Lay: clutched wife’s ties and Exchange Commission, been ignored, and the former head four-under-par 68 in the BMW Championship at hand as she sobbed at verdict said it sent an important message to of investor relations, Mark Koenig. Wentworth: page 18 Soccer: Theo Walcott had his first run in a senior England side when England’s World Cup preparations began with a B team selection RTÉ cuts well-known shows losing 2-1 to Belarus last night: page 19 Weather in major revamp of schedules Rain will clear away in the morning with Emmet Oliver sunshine following. Winds will be westerly at 32kph. Temperatures will reach 17 degrees in RTÉ has introduced radical places: page 28 changes to its radio schedules with a number of high-profile broad- casters losing out in the shake-up. Index Several long-established pro- grammes are to be scrapped, while Home.....2-10 Features....15 Sport....18-23 a new host will be named shortly World...11-13 Opinion.....16 Bulletin.....28 for an evening programme, Drive- Arts...........14 Letters......17 TV.............30 time, to replace Five Seven Live.