September 17, 2017 SIR MICHAEL SMURFIT OPENS UP ON FAMILY AND TECH HIS FINANCES PAGE 6 DO TECH GIANTS IGNORE VAT FRAUD? BUSINESS HOW TO HELP YOUR PAGE 16 CHILDREN GET ON BRUSSELS’ THE PROPERTY TAX ATTACKS PAGE 4 LADDER 12 PAGE 9 PUZZLES 14 &MONEY PAGE 14 STATS PUTS DUBLIN OFFICE IN PLAY

IAN RUTHERFORD Eir chiefs eye €180m bonus in NJJ buyout

Gavin Daly many executives benefit from the plan. earlier this year. Representatives from NJJ “Under the terms of the MIP there are have flown into Dublin in the past two A proposed buyout of Eir by French good and bad leaver clauses, which deter- weeks to advance due diligence examina- telecoms entrepreneur Xavier Neil’s mine the rights of participants who cease tion of the company books, and talks are NJJ Holdings and three existing share- to be employees prior to the occurrence said to be continuing. holders is likely to trigger bonus pay- of an exit event,” said Eircom Holdings in In a statement, Eir Finance DAC, a ments to the company’s top brass of its financial statement. company that issues bonds to finance more than €180m. The largest beneficiary will almost cer- group operations, said the existing major The buyout plan is under discussion tainly be Richard Moat, the Eir chief exec- shareholders had “affirmed their contin- between NJJ Holdings and Eir’s three utive, who joined the firm as chief finan- uing commitment to their investment in largest shareholders — Anchorage, an cial officer in 2012 and was appointed EHSA for the foreseeable future. There American fund; GIC, a Singaporean to the top job in 2014. Non-executive can be no certainty that the discussions state investment fund; and Davidson directors also qualified for shares. between the shareholders of EHSA and Kempner, another US fund. Eir’s key management had salaries and the potential investor will result in a The three funds currently control 90% short-term benefits of €6.3m in the finan- transaction”. of the equity in Eir, and it is understood cial year to the end of June, according to Separately, Eir last week initiated a that NJJ is proposing to take a significant the group’s accounts. The company also High Court legal action against a former stake in the business. If concluded, paid €3.4m in termination benefits to director of the business, Bruno Claude, according to sources, the proposed trans- senior management last year, a multiple who stepped down from the board on action will almost certainly trigger pay- of the €500,000 paid out the previous July 31 last year. The telco is seeking a outs under the company’s lucrative man- year. It is understood the figure relates to declaration against Claude, a legal move agement incentive plan (MIP). a number of senior departures rather that is usually intended to bring certainty The plan was set up in 2013 to acquire than one individual. to a provision in a contract. shares in the company for management, Jon Florsheim, who was managing The company, which is represented by who would benefit if Eir floated or was director of Eir’s consumer business and Arthur Cox solicitors in the legal action, sold. A sum of €2m was paid into the its chief marketing officer, left the group declined to comment. Claude could not incentive plan last year, down from €5m be reached for comment. in the previous year. Claude joined Eir as a non-executive The cumulative contribution to the Moat is likely to director in June 2012 after the telecoms incentive plan to date by the company is be the largest group emerged from examinership. He €54m. However, it has been reported beneficiary of was previously chief executive and that the valuation of the shares held any bonus president of Cablecom, a Swiss cable Stats, one of the world’s on Celtic in the Champions Sports Data & Technology has been expanding since within the plan is €181m, according to the payment if Eir television provider, which was acquired top sports analytics League last week, pictured Ireland include global chief it was bought by US private accounts of Eircom Holdings SA (EHSA), is bought out by Liberty Global for €2.5bn. companies, is looking at — and media companies executive Kenneth Fuchs. equity firm Vista in 2014. the company’s Luxembourg parent. setting up a Dublin office, such as ESPN, registered a Found in 1981, Stats was Since then it has The company does not disclose how Agenda, page 2 writes Philip Connolly. new Irish entity earlier this bought by Fox in 2000 and completed a number of The US company, which month. It already works later became a joint acquisitions including provides statistics to top with the Camogie venture between Prozone. It covers 85 sports teams such as Paris Association in Ireland. Associated Press and leagues globally and Saint-Germain — who took The directors of Stats News Corp. The company 55,000 events a year.

Piercy data hub sells for €66m

Brian Carey Piercy, who founded the property from Ficepot, a having agreements with internet service provider company controlled by Dataplex. According to its A company controlled by the Digiweb, developed the Piercy. Former presidential website, Dataplex is also serial telecoms entrepreneur facility which opened in 2013. candidate Sean Gallagher is developing further data Colm Piercy has bagged a The shares in development also a director. centres in the UK and in large profit from the sale of a company Dataplex The facility has a total of Germany. west Dublin data centre to a Datacentres were valued at four data halls, offering Earlier this year, Piercy Singapore-listed real estate €11.5m in May 2016 as part of energy-efficient services to a and co-investors purchased investment trust, writes a group restructuring. long list of large, blue-chip 365 Data Centers, an Brian Carey. Keppel is buying 100% of clients. American data centre Keppel DC Reit last week Dataplex Datacentres for A charge document, filed company, for $100m (€84m). purchased Dataplex Group’s €58.5m. in the Companies Piercy sold Viatel, a B10 data centre at the The Singaporeans are Registration Office last subsidiary of Digiweb, to Ballycoolin industrial estate paying a further €7.5m for a December listed Facebook, the US firm Zayo for €95m in for a total of €66m. 999-year lease on the Microsoft and Vodafone as cash in 2015. Irish Times to wrap AIB’s €1.5bn push up Examiner deal on rich pickings

Gavin Daly element in the acquisition. Niall Brady management industry has There is limited crossover in shrunk to just 1% since it is progressing readership between The Irish AIB aims to capture at least sold Goodbody Stockbrokers plans to acquire the Cork- Times, which has most of its 5% of the private banking in 2010. based sales in the Dublin region, market by 2020 as part of a To achieve McLaughlin’s newspaper, with a deal now and the Irish Examiner, bid to regain lost ground in target of a minimum 5% expected to be completed which is Munster-focused. wealth management share, it will have to grow its within weeks. Independent News & following the financial crisis. assets under management Sources said that terms of Media explored the “We’re making a big push by at least €1.5bn over the a takeover had been agreed in possibility of acquiring the because, relative to AIB’s size next three years. principle and the sides were Irish Examiner earlier this in Ireland, we’ve a small but Industry insiders believe working through details such year but did not proceed to growing market share,” said that AIB may have to acquire as staffing and costs. Any detailed talks. Sunrise Media, Dave McLaughlin, the head of or partner up with other agreement will be subject to the Key Capital-backed owner AIB Private Banking. “There’s wealth managers to achieve approval by the Competition of the Sunday a huge amount of first- this target. and Consumer Protection and the Webprint Concepts generation wealth in Ireland.” Acquisitions are Commission. print plant in Cork, was also AIB Private Banking is considered unlikely, The deal is complicated by believed to be interested in currently recruiting 10 staff to however, while the state the €21m debt owed to AIB by acquiring the title. add to its headcount of 75 in remains a majority Landmark Media, which The Irish Times had Dublin, Cork and Galway. shareholder in the bank. owns the Irish Examiner as turnover of €83.6m in 2015 McLaughlin joined AIB last AIB’s strategy of well as a portfolio of regional and made an operating loss of year from Royal Bank of positioning its private bank as newspapers and radio €1.1m, according to its latest Canada’s wealth management a separate brand for stations. It is understood a accounts. The company also business in Dublin. customers with investable portion of the overall debt had €1.9m in reorganisation The AIB chief executive assets of at least €1m will be assigned to the Irish costs that year but was Bernard Byrne identified contrasts with the approach Examiner and an agreement boosted by a €53.6m gain on wealth management and of Bank of Ireland. It has reached with the bank. the winding-up of its defined pensions as key growth areas moved to integrate its private KPMG has been advising benefit pension schemes. in the run-up to the stock banking unit with the Landmark, which is owned Landmark had turnover market flotation of a 28% mainstream retail bank. by Tom and Ted Crosbie, on of €47.7m in 2014, the last stake in the bank in June. This has resulted in its options for some months. year for which accounts are “I think that’s going to be a hundreds of customers of The acountancy firm PwC is available, and made a loss big thing for the next 10 Bank of Ireland Private working with AIB. The Irish of €92,600. The group does years,” he said at the time. Banking being told in recent Times holds the contract to not separately disclose the AIB’s share of the weeks that their affairs will be print the Irish Examiner, financial performance of the estimated €30bn-€35bn handled in future through which is seen as a key Irish Examiner. managed by the wealth their local branch. February 4, 2018 GYM BOSS READY TO MAUL WITH THE FITNESS GIANTS TECH PAGE 6 CAN SNAP BOSS PLAY HIS CARDS RIGHT? BUSINESS PAGE 14 GET A LIFE ... HOW TO CAUSES CONCERNED CHOOSE INSURANCE WEB DONATION FIRM PAGE 9 AMMADO AND THE 12 MISSING MILLIONS PUZZLES 14 &MONEY PAGE 5 PAGE 12 Davy lines PRIMARK MAKES ROOM AT THE TOP up bid Chinese investors for IFG adviser poised for €100m Davy, the country’s largest broker, is running the rule over a bid for Saunderson House, an investment adviser owned by IFG, writes Goodbody buyout Brian Carey. Last Friday, IFG said that it Well-known business 75% stake, leaving staff and management expected to close by the end of next was considering the sale of at Goodbody with a 25% share. Staff and month. Goodbody, which is controlled the profitable Saunderson figure speculated to be executives, led by managing director Roy by a company registered in the British House as a means of creating Barrett, have since doubled their stake to Virgin Islands, does not file accounts in value for shareholders. The behind landmark deal just under 50%, under an incentive deal the Companies Office. board, which is headed by agreed at the time of the takeover. The Dublin-based broker set up an serial entrepreneur John Brian Carey The executive earn-in was based on investment banking division in 2016 as Gallagher, said that the Goodbody hitting various profit mile- part of a strategy to increase its business quoted financial services A Chinese investment group is in stones, and it has been widely speculated presence in the UK, where it has poached group had received “a advanced talks to buy Goodbody, the that Fexco may have already made a big a number of senior executives from number of approaches” for country’s second-largest stockbroker, for chunk of its investment back at the Canaccord Genuity. Saunderson and discussions a sum believed to be about €100m. broker, based on dividends earned from It is understood that a well-known were at an early stage. A spokesman for Fexco, Goodbody’s the business in the past five years. business figure with deep business con- The business could be majority shareholder, declined to com- The broker’s profits were buoyed by a nections in China may have played a role worth up to £150m (€170m), ment on the takeover talks. However, bounce in trading in Irish shares and in bringing the Chinese investment group according to sources, based The Sunday Times understands that an strong returns from its corporate finance to the Irish market. on assets under advice of announcement on the deal could be division, which advised on the flotation There has been considerable specula- more than £5.1bn. made within weeks. of Aer Lingus and Cairn Homes. tion that Fexco might use the sale of its Davy will pocket €60m for The transaction would be subject to The broker is also set to receive €45m ISE stake as an appropriate time to exit its stake in the Irish Stock regulatory clearance from the Central from the sale of its stake in the Irish Stock the business. In 2016, it was reported that Exchange, when the sale to Bank of Ireland and the Chinese financial Exchange (ISE) to Euronext, the trans- Investec held talks with the company Euronext is completed in the authorities. European bourse. The ISE sale is about a possible bid for Goodbody. coming weeks. The deal, if completed, would result South African-owned Investec is cur- It is estimated that the in a stunning return for Fexco on its rently running a sales process for its Irish exchange windfall will bring investment in the venerable broker, Roy Barrett is business, with AIB believed to be among Davy’s reserves to more which traces its roots to 1877. set to reap the the front-runners. than €200m. The Kerry financial services group benefits of The process, which may not lead to a The broker has made no acquired control of Goodbody in January Goodbody’s sale, was initiated after a number of unso- secret of its ambition to 2011 from AIB for €24m, moving to buy executive earn-in licited approaches for the bank and its expand in the London the business as the bank sold non-core investment and wealth management market, and Saunderson, assets as part of the terms of its govern- businesses. Investec will earn €30m which draws its clients from ment bailout. At the time, Fexco took a from its stake in the ISE. legal professionals in the City of London, would be a good fit. Davy would face competition for Saunderson. IFG said that its other subsidiary, James Hay, faces fines of up to £20m from HM Revenue and Customs after its clients were caught up in a row with the taxman over investment in Elysian Fuels, a biofuels company. Fashion chain Primark has bolstered its senior management team at its Dublin IFG shares fell sharply on headquarters with the hire of a leading Top Shop buying director. Full story, page 3 the news. Ammado boss accused of asset-strip

Gavin Daly after the International property, trademarks and keeping donations separate Federation of the Red Cross internet domain names from from company funds. The The liquidator to a Dublin filed a criminal complaint Pembroke to a company liquidator said €40,000 had company that owes €3.8m to against Ammado and Conlon, called Ammado Technology, been paid to a woman Conlon charities claims its founder claiming it is owed €1.55m after the Revenue petition was believed to be transferred technology and in donations. was presented. “romantically involved with”. trademarks to a new venture The main Irish Ammado In an affidavit, Kirby said Kirby secured court orders ahead of the liquidation. company, Pembroke Conlon had sent an email on freezing Conlon’s assets and Peter Conlon, the founder Dynamic Internet Services, November 7, asking: “Have the case will return to the of Ammado, is in custody in was put into liquidation on we moved all registrations etc High Court this Friday. The Switzerland where he was January 22 after a winding-up into AT. The Revenue are Zurich public prosecutor’s arrested on suspicion of petition was presented by really pushing it.” office said the “presumption embezzling money from the Revenue. The liquidator, Kirby said Pembroke took of innocence applies”. company, which developed Myles Kirby of Kirby Healy in €8m between November 1, technology to facilitate online accountants, claims Conlon 2016, and January 23 this year Where did all the money donations. He was arrested transferred intellectual but there was no structure go?, page 5

US fund sets sights on Paddy Power Betfair Dublin fintech hub loses marketing boss

Motive Partners, a US private partnership with several Philip Connolly coherent marketing strategy equity fund specialising in financial institutions. for the enlarged group technology investments, is Last month the investment Paddy Power Betfair faces a following the completion of planning to open an office in vehicle secured the backing further shake-up of its senior its 2016 merger. Dublin following €25m of four leading banks, executive team after the Since replacing Breon backing from the Ireland including AIB, and departure of chief marketing Corcoran as chief executive Strategic Investment Fund Mastercard as founding officer Johnny Devitt. last month, it is understood (ISIF), writes Philip Connolly. partners for the partnership. It is understood Devitt that Peter Jackson has The state’s investment It will involve the group has decided to leave amid a significantly restructured the vehicle recently agreed a deal looking at innovation and streamlining of the betting company’s management to invest in Motive Capital investment opportunities, giant’s upper management ranks and altered its Fund I. Motive is targeting a and working with fintech structures, which would have reporting lines. total fund size of up to $500m start-ups on new products changed his role. Cormac Barry also recently (€400m), with a $750m cap. and services. Devitt is leaving the stepped down from his role Motive is expected to begin ISIF has invested heavily company after more than a as head of Paddy Power’s investing in Irish companies to bring international decade of working at both Australian business to join this year, as a result of the investors into the Irish Paddy Power and Betfair. Irish technology company ISIF investment. market. Last year it The UCD graduate joined Cartrawler last month. Dan Founded in 2015, the committed €125m to entice Paddy Power in 2007 as a Taylor, previously managing fund targets growth-stage the UK Business Growth Fund manager for financial spread director of the group’s UK and buyout investments in to set up a large capital fund. betting and contracts for and Ireland operations, is the financial technology The state’s investment difference before taking on a assuming a newly created sector. It has been backed by arm also agreed to back senior marketing role. role as chief executive of US private equity fund Muzinich, an American SME In 2013, he joined then Paddy Power-Betfair Europe. Warburg Pincus. debt specialist, with €45m, rival Betfair’s marketing Aine Flanagan has been Motive is expected to and invested about €85m in department and became promoted to the role of chief open a Dublin fintech Insight Venture Partners, a chief marketing officer in strategy officer, and Johnny innovation hub called software-focused venture 2015. He took over Hartnett has been appointed Motive Labs, which is a capital firm in America. responsibility for creating a chief development officer. The Sunday Times February 4, 2018 5 BUSINESS

PHOTOSHOP BY PETER BAKER two other houses on the same 2016. The petition did not proceed after How did an Irish road. Xsil turned profitable after a legal hearing. three years and grew to about 150 Externally at least, Ammado appeared people, pulling in annual profits to be making progress. In January 2012, it tech boss wind of between €5m and €10m. raised its first external investment, taking In 2004, Conlon won the indus- in $9m from Saffelberg Investments, a up being held try category at the EY entrepre- Belgian finance house, and John Ryan, an neur of the year awards, a black- Tipperary-born tech entrepreneur who tie fixture on the corporate now runs venture capital group SVG Part- in Switzerland calendar, for his achievements at ners in California. Conlon has also named Xsil. In a video recorded for the Vikram Gandhi, founder of VSG Capital on suspicion event, he said the awards were Advisors in New Delhi and a former important for creating an “envi- senior executive at Credit Suisse and Mor- ronment of entrepreneurship”. gan Stanley, as an Ammado investor. of withholding “At least they can say that busi- Company presentations list its other ness is not all dirty,” he said on the investors as James Chen, chairman of €3.8m of charity video. “It’s not about brown paper Wahum Group Holdings in Hong Kong bags, planning permissions, but and Nigeria; Arnold Ekpe, former chief that some businesses are about executive of Ecobank, which has opera- donations, creating value using intellectual tions in 36 African countries; and skill from a small island off the Andrew Morgan, former president of asks Gavin Daly west coast of Europe.” new business at Diageo. He was reported to have Conlon and Kupka moved to Switzer- appointed Citigroup to advise on a land around the start of 2012, though n December 22, the Irish sale or flotation of Xsil, raising the Kupka left Ammado a number of years businessman Peter Conlon prospect of a second big payday. ago and resigned as a director in 2015. sent a short email to an asso- In 2005, with the Xsil business in Ammado AG, its Swiss company, is based ciate. “See you in Zurich good shape, he set up Ammado in a low-profile brick building in Zug, a later,” wrote Conlon, a serial with Anna Kupka, an Xsil director low-tax canton that houses the headquar- tech entrepreneur with and general counsel. ters of many international groups. both business success and The new venture started as an Conlon had a high profile in the charity failure to his name. Then online games developer with a sector, sharing a stage at an event on he vanished. charitable angle. In its earliest Ebola in 2014 with Nick Clegg, then UK A trip to the Swiss busi- incarnation, Conlon envisaged deputy prime minister, and the under- ness and financial centre was not unusual Ammado launching a game secretary of the IFRC. After the 2015 Ofor Conlon, who relocated to Switzerland that would be played glo- earthquake in Nepal, the Red Cross from Dublin about six years ago. His bally, and where the winner embedded a “donate” button enabled by latest venture, Ammado, developed would get €1m for them- Ammado in tweets about the disaster. technology to process online charity selves and €1m for a char- Airbnb and Angry Birds also launched donations, and the Swiss base put him ity of their choice. Over Nepal appeals using Ammado’s system, close to the headquarters of many global time, it evolved into a and investment bank UBS used it to raise charities, including the International donation “platform” donations for its charitable foundation. Federation of the Red Cross (IFRC). that allowed users Ammado had a link-up with Adidas, and By the time Conlon sent the December to set up funding Conlon listed partnerships with blue- email, however, Ammado was in deep drives and donate chips including Coca-Cola, AstraZeneca, financial difficulties. The Revenue Com- Nestlé, Oracle and Airbus. In 2016, Con- missioners had petitioned to wind up its lon announced Audie Attar, head of Para- main Irish company, Pembroke Dynamic digm Sports Management and manager Internet Services, over a €400,000 tax of MMA fighter Conor McGregor, would bill, starting a chain of events that would join the Ammado AG advisory board. lead to a liquidator being appointed to The ventures did not translate into the business on January 22. bumper revenues for Ammado, which In the High Court last Tuesday, liquida- took a 5% fee on donations made through tor Myles Kirby of Kirby Healy Chartered its system. Kirby said Ammado received Accountants alleged at least €3.8m that €5.8m in donations from March 2016 to Ammado had taken in for charities was September 2017, which would amount not passed on. With just €357,000 in the to just €290,000 in fee revenues. At company bank accounts, there is a “very the time, the business was supporting the significant shortfall” owed to charities. Irish company with about 20 staff, By the end of the week, it was apparent Ammado AG, and a company with why the liquidator found Conlon was development staff in Novi Sad, Serbia. “uncontactable”. He had been arrested At the end of February 2016, the Irish by the Swiss authorities at Zurich airport company had losses of €19.4m and a on December 22, on suspicion of €15.4m deficit. The company said it owed embezzlement of funds from Ammado. €15.8m to creditors including €12.3m to The arrest followed a criminal com- Ammado AG. Its auditor said there was “a plaint from the IFRC, which claims it is significant doubt and uncertainty with owed €1.55m in donations that were not regard to the company’s ability to paid on by Ammado. Conlon remains in continue as a going concern”. custody in Switzerland, according to the white-collar crime unit of the office of mmado’s woes began to accumu- the Zurich public prosecutor. late early last year. The IFRC said In an affidavit opened in the High last week it became aware of “busi- Court last week, Kirby has accused to charities in over 100 countries. Conlon ness conduct issues” at the com- Conlon of misappropriating money from touted the complexity of the technology, Apany in April 2017 and told all its Pembroke Dynamic Internet Services, which handles a dozen languages, about national societies, including the Irish Red using donations intended for charities to 90 currencies and local tax issues. Cross, to stop using the Ammado system. fund the company’s day-to-day costs and The IFRC said it did not tell other chari- pay personal expenses. Information he n 2007, he stepped down as chief exec- ties about its concerns about Ammado, uncovered in his first week as liquidator utive and chairman of Xsil to focus based on legal advice. “suggests that [Conlon] is dishonest and full-time on Ammado, described at the In May 2017, a Red Cross executive untrustworthy”, Kirby said. time as “a Facebook for charities”. wrote to Conlon seeking full payment of The liquidator said Conlon’s company IHe was genuinely passionate about the €186,734 owed to the American Red did not keep charity donations in a segre- sector, treating business associates, jour- Cross. There was further correspond- gated bank account but “cynically” gave nalists, and potential staff and investors ence in July citing Ammado AG’s “lack of the impression donations were proc- to lengthy deliberations on Ammado’s co-operation and the non-availability of essed through a charitable foundation, efforts to boost global “giving”. funds”. The demands from other the Ammado Foundation. Ammado had He drew criticism, however, after the charities were also mounting. no financial controller, and Conlon demise of Xsil, which went into a down- The Revenue petitioned to wind up “appears to have carried out that ward spiral when a planned sale to a Pembroke Dynamic Internet Services, function as far as it existed”. Japanese public company failed to mate- the Irish company, on September 5, Kirby said several charities had been rialise. Staff went unpaid at the end of prompting it to seek examinership pro- pursuing Ammado for payment of 2008 and ultimately petitioned to wind tection from the courts. Conlon report- donations, including the American Red up the company in an effort to get paid. edly told Ammado investors that a group Cross, New Zealand Red Cross, the UN The Xsil intellectual property was sold of wealthy individuals had committed to High Commissioner for Refugees, Caritas for about €2m and a settlement was even- invest £10m (€11.4m) and a “world-class” Internationalis, the Arsenal Foundation tually reached with the former staff in chief executive had been hired. and the Save the Children Fund. The 2010. Brian Farrell, an engineer who took In an article in Swiss media last Novem- requests for payment date back as far as over from Conlon as Xsil chief executive, ber, he was quoted as saying Ammado last April. The liquidator sought and was awarded €176,000 by an Employ- had no financial difficulties and was hir- secured court orders freezing Conlon’s ment Appeals Tribunal in 2011. ing 15 employees in London. The examin- assets. He has also sought a full disclosure In an interview in 2015, Conlon said it ership petition was voluntarily with- of Conlon’s assets and liabilities. was “stupidity” and “petty Irish” to drawn, however, and High Court judge “I do not make the application lightly criticise the manner of Xsil’s collapse. Brian McGovern set a date of January 22 in this case, but I have strong grounds to “You wouldn’t have that reaction in for the Dublin company to pay creditors believe . . . [Conlon] is guilty of very Silicon Valley,” he said. Conlon said he in full or be wound up. serious misconduct in the context of the had personally lost millions of euros By then, unknown to the judge, the liq- insolvency of the company,” Kirby said in on Xsil and suggested his MVT uidator or Ammado’s staff, Conlon had the affidavit. Conlon, he added, “has fortune was spent. “What I been in custody in Switzerland for a powerful incentives to dissipate any have left out of it wouldn’t month. The Irish staff are co-operating assets held by him which may be cover a cup of coffee.” with Kirby, and John Doherty, the beneficially owned by Ammado”. Emuse, meanwhile, had Ammado chief technology officer, has Kirby claims Conlon, 63, took steps to accumulated losses of sworn an affidavit in the case. move assets out of the company that was more than €55m at the Michael Conlon, a brother of Peter being liquidated, including shifting its end of 2015 and is reliant Conlon, was a director of Pembroke intellectual property and internet on Rainsford to keep it Dynamic Internet Services but resigned domain names to another company. The afloat. Conlon resigned in November. Last week, he said: “I do new company has attempted to open from its board in 2014 and not wish to speak to you or anyone else bank accounts in several countries, an Isle of Man trust linked to on this matter.” including an account in New York. Conlon served a petition Kirby said there was “clear evidence” The Swiss Department of Justice has seeking repayment of more Peter Conlon tried to move assets out of separately sought details of bank than €2.8m from Emuse in Pembroke Dynamic Internet Services accounts held by Ammado. Kirby said it develop technology for the trading floors Conlon, right, has been after the Revenue presented its court was not clear how the multimillion-euro of big banks. accused of reckless and petition to wind up the company. The debts had mounted at Ammado, which Amid rapid changes in that sector, they fraudulent trading and liquidator cited an email sent by Conlon swallowed about $35m (€28m) invest- wound down Lightband in 1996, making misfeasance in the running at 7.40am on November 7 asking: “Have ment from Conlon and other backers to little return. The same year, they set up of Ammado, which we moved all registrations etc into AT. develop its technology. MV Technology (MVT) to develop optical processed donations made The Revenue are really pushing it.” The businessman had been attempting inspection tools for electronics manufac- to some of the world’s Kirby believes “AT” refers to Ammado to raise at least €10m more investment turing companies. best-known charities Technology, a company that has been for the company late last year. Sources Funded by Conlon and Rainsford, dormant since it was set up in January said it appeared he intended to pay the low-key MVT counted the likes of Nokia, 2012. Conlon is a shareholder and sole charity debts from that funding, but Philips and 3Com as customers, clocking director of Ammado Technology. On his the deal did not materialise. “It has not revenues of more than €25m in 2000. In LinkedIn profile, he describes himself as been possible to fully establish how this early 2001, they sold MVT to Agilent president of the company. shortfall arose and how the misappropri- Technologies for €102m in cash. Kirby said an investment update given ated funds have been spent,” said Kirby. Conlon personally negotiated the sale. by Conlon to prospective investors, dated “This will be a very extensive and time- He would later regale people with a story December 6, said Ammado Technology consuming exercise, and will involve a of how he walked out of a meeting with owned all the intellectual property, forensic review going back many years.” Agilent over a disputed detail, only to web addresses and trade marks for be chased down the stairs by their Ammado. The company has no t is a stunning reversal of fortune for executives to seal the transaction. liabilities and “will generate all Conlon, an award-winning entrepre- By then Conlon had formed his next revenues from the Ammado neur who sold one of his previous venture, Xsil, to make laser machines to Conlon platform and products”. companies for more than €100m. A cut silicon for semiconductors. Rainsford had a high Just over two weeks later, Conlon Inative of Carrick-on-Shannon in Co meanwhile set up Emuse Technologies, was arrested in Zurich. Kirby is Leitrim, he is a qualified barrister and an advertising tech group, and both men accusing Conlon of reckless trading, chartered accountant. Conlon started his invested heavily in both ventures. profile in fraudulent trading, and misfeasance in career at Ernst & Young, now EY, and In 2003, Conlon said the duo had per- the running of Ammado. The case is due worked as a project manager at IDA sonally invested €25m in Xsil. In May that the charity back in the High Court on February 9, Ireland. He set up his first tech venture, year, he paid €5.1m for a five-bedroom when Conlon will have a chance to Lightband Communications, in 1987 with house on the affluent St Marys Road in sector explain where the money went — if he business partner Patrick Rainsford to Ballsbridge, Dublin 4. He already owned is at liberty to do so. April 1, 2018 · Issue no 10,099 · thesundaytimes.ie RoI €3 (inc Vat) · NI £2.70

MAGICAL MUNSTER EVERYONE’S DO IT AGAIN MEGHAN NEWS SPECIAL A LOSER REPORT HER TRUE JUSTINE McCARTHY ON THE FALLOUT FROM THE SPORT STORYMAGAZINE RAPE TRIAL

SAM BOAL Olding’s lawyer in O’Brien firm online warning linked to ‘data

Justine McCarthy and Colin Coyle Stuart Olding’s solicitor has said he breach’ at INM is monitoring online comments about the player following his acquittal, along with Gavin Daly The alleged data breach at INM official who was hired by Buckley fly-half Paddy Jackson, on charges has emerged as a significant item in in 2014. of raping a 19-year-old student. An Isle of Man company controlled the ODCE investigation, which was Buckley was introduced to “We’re urging caution,” Paul by the billionaire businessman prompted by a protected disclo- Mizak by John Henry, owner of Dougan said following an Denis O’Brien paid the bill for sure by Robert Pitt while he was Specialist Security Services, who announcement by Jackson’s law- an IT group that was given access INM chief executive. provides services to Buckley yers that they intend to sue Aod- to the computer networks of The media company’s board did personally and to Digicel, the Car- hán Ó Ríordáin, a Dublin senator, Independent News & Media (INM) not become aware of the data issue ibbean mobile phone company over a remark he posted about in 2014, according to an until it received a letter from the owned by O’Brien. their client on Twitter. investigation by the state’s corpo- ODCE last year. Henry and Mizak are believed to On Friday, bestselling author rate watchdog. It is understood that Drennan’s have both provided information to Marian Keyes, who has 157,000 The probe by the Office of the affidavit also raises other issues the ODCE. Director of Corporate Enforce- and contains information not pre- A spokesman for INM said that it ment (ODCE) has found that the viously seen by INM, including had no comment to make beyond ULSTER RUGBY RAPE TRIAL access granted to a British tech emails and texts involving Buckley. the statement it issued last Full coverage, pages 7-9 company was facilitated by Leslie The businessman has his own weekend. Buckley, a long-term associate of legal representation, and the com- In that statement, the company O’Brien who stepped down as INM pany does not see correspondence said that its board was taking legal followers on the social network, chairman last month. between Buckley and the ODCE. advice on whether the High Court tweeted support for Ó Ríordáin The board of INM was unaware Buckley told the ODCE last year would have sufficient grounds to using the hashtag #suemepaddy. that network access had been that TDS was given access to the appoint the inspectors. Within 30 minutes Keyes had granted to Trusted Data Solutions INM networks as part of a “cost-re- Last week Michael Doorly, chief deleted the tweet, although yester- (TDS), an American company with duction exercise”. executive of INM, told staff that the day she retweeted a number of an international headquarters TDS, which specialises in data company had “put its insurers on messages from other Twitter users in Wales. recovery, had full access to the INM notice” and was forming a special with the #suemepaddy hashtag. The sequence of events is networks but its activities included committee to handle the issue, The author did not respond to que- detailed in an affidavit filed by Ian a trawl for data on 19 specific which could run for years. ries through her agent yesterday. Drennan, the director of corporate people who are named in Dren- Doorly added: “We are an awful “I think the focus is on Paddy enforcement, to support his appli- nan’s affidavit. long way from any finding that any- Jackson at the moment but we’re cation for the appointment of High It is understood the affidavit also one has broken any law.” watching and monitoring every- Court inspectors to investigate refers to a legal action initiated in Under the Companies Act 2014, thing,” said Dougan. “After Easter, INM. The affidavit stretches to late 2015 by O’Brien against Red the High Court can approve the we will also be looking at the more than 200 pages with several Flag Consulting, a public-affairs appointment of inspectors pro- reporting of the story over the boxes of supporting documents, company headed by Karl Brophy, a vided that it is satisfied there weekend. according to sources. former INM executive, and chaired are circumstances “suggesting “The [online] commentary has A spokesman for O’Brien did not by Gavin O’Reilly, another former that the affairs of the company been extensive. The law is no respond to phone or email chief executive of INM. have been conducted in an un- different for social media to that requests for comment last week. O’Brien became the largest lawful manner”, or in certain for print or broadcast media, but A spokesman for Buckley said he shareholder in the company in other cases. people seem to feel it’s as casual had no comment to make on the 2012, building up a 29.9% stake The ODCE rarely exercises its as having a conversation in their ODCE investigation. following a protracted corporate power to appoint inspectors. own home.” The ODCE did not comment on battle with O’Reilly and his father Dougan said Olding is “spending its application for the appointment Sir Anthony O’Reilly. BUSINESS time with his family and hoping the Ella McGill joins the activists who marched from City Hall to the Department of Justice in support of the inspectors, due to be heard TDS was brought into INM by Corporate and criminal Continued on page 2→ of victims of sexual assult and rape in Dublin yesterday. There were also rallies in Belfast and Cork by the High Court on April 16. Derek Mizak, a cyber-security law experts to probe INM Teen housing rush ‘led to homeless spike’ Whistle blown on fat GAA refs

Stephen O’Brien have presented for emergency by 703 from 9,104 to 9,807 — 500 of have a proper policy response to Colin Coyle Cardiology in Galway and St Fin- INDEX Political Editor accommodation in such numbers. whom were children. There was what the underlying issues are.” barr’s hospital in Cork found. The The increase in non-typical also an unusual rise in numbers Conor Skehan, chairman of the Now we know why they wear researchers concluded that “nega- Lottery News 2 The increase in homeless figures applications for emergency seeking emergency hotel accom- state’s Housing Agency, has said black. A study of male GAA refer- tive lifestyle behaviours” were to Weather News 23 last month may have been due in accommodation has come as local modation in Dublin at weekends. families living in hotels and other ees has found that 60% are over- blame for their poor health. They part to a surge in the number of authorities start to implement new “It was brought to my attention emergency accommodation could weight, higher than the national found a large number of the men Letters News 18 young people applying for emer- rules on how social houses are allo- over the last two months by the be “gaming the system” by declar- average for men, which was put at did not buy or cook their own food. Sudoku Money 13 gency accommodation before a cated, decreasing the priority DRHE that new trends are develop- ing themselves homeless in order 43% in the Department of Health’s The study suggests that the GAA TV & Radio Culture 41 change in the rules for allocating given to those in emergency ing, new reasons for presenta- to jump up the housing waiting list. Slan survey a decade ago. should raise awareness about social housing. accommodation. tions, particularly when it comes He said the government might It also found 49% of the refs had heart disease with referees by A report prepared by the Dublin The DRHE report, requested by to families,” said Murphy. have “unwittingly” encouraged pre-hypertension, suggesting they implementing “pre-participation Regional Housing Executive, to be Eoghan Murphy, the housing “That is something we are inves- people to exploit the housing allo- had an advanced risk of heart dis- screening”. Cardiovascular dis- published this week, will say hun- minister, is expected to give tigating. When I have that report, cations system by prioritising “self- ease. Despite getting regular exer- ease is the primary cause of mor- dreds of newcomers to emergency detailed data on trends in emer- I will act on the recommendations declared homelessness”. cise, they were unhealthier in a tality among the general popula- accommodation in recent months gency homelessness. February’s immediately. I don’t want to speak In 2016, Simon Coveney, then number of ways than the general tion in Ireland and worldwide. y(7HA9F6*LNSQRQ( |||+#!@ have been in their late teens. figures showed the number of about [the new reasons] until housing minister, reduced the population, researchers from the Researchers interviewed 183 This group would not previously homeless across Ireland increased I have the firm data . . . so we can Continued on page 2→ National Institute for Preventive Continued on page 2→ April 1, 2018 FROM CREAM LIQUEURS TO HIRING IN HONG KONG TECH PAGE 6 NOW THE LAW WANTS YOUR DATA BUSINESS PAPER TRAIL PAGE 7 WHAT IS REALLY TROUBLES AT GOING ON AT THE HOUSE OF FRASER PAGE 7 INDEPENDENT 12 PAGE 5 PUZZLES 14 &MONEY PAGE 12 Criminal and corporate law experts to probe INM Euroclear clouds future of share Gavin Daly partner at Herbert Smith others who were found not is the deputy chairman of the whether the court would It is understood the Freehills lawyers in London, guilty of falsely imprisoning International Ethics Standards have sufficient grounds affidavit states the ODCE’s The state’s corporate as inspectors to INM. The ex-tanaiste Joan Burton and Board for Accountants. to make the appointment belief that the IT company’s watchdog has lined up a inspectors would have wide- her special adviser during a The ODCE would not [of the inspectors]”. access was facilitated by trading in Dublin senior criminal lawyer and ranging powers to investigate protest over water charges. comment on its investigation The ODCE wants the Leslie Buckley, former a British expert in corporate INM’s affairs and corporate Fleck was a partner at into INM or the identity of the inspectors to probe a range chairman of INM, and that its Niall Brady Central Bank,” the Irish governance to be inspectors governance issues. Herbert Smith Freehills from inspectors. The application of issues at INM, including a bill was paid by a company regulator said. to Independent News & Gillane is known for his 1980 to 2009 and is still a for their appointment is due suspected data breach, when owned by Denis O’Brien, The pan-European securities Euroclear said it would Media (INM), if its application criminal law work and is consultant with the law firm, to be heard in the High Court an external IT company was INM’s largest shareholder. settlement house Euroclear work on alternatives to a CSD, to the High Court for their leading the state’s case which has 27 offices globally. on April 16. given access to INM’s A spokesman for Buckley has scrapped plans for a warning that the existing appointment is successful. against Patrick Hutch, who is A specialist in corporate law An INM spokesman said networks. Ian Drennan, the said he had no comment to dedicated unit for Ireland, arrangement would be The Office of the Director accused of murdering David and governance, he worked it had no comment to make. director of corporate make. A spokesman for raising fears that a hard Brexit “untenable” after Brexit if of Corporate Enforcement Byrne at the Regency hotel in with the UK and European In a statement issued last enforcement, has filed an O’Brien did not respond to will disrupt share trading on Ireland could no longer rely (ODCE) is proposing to install Dublin in 2016. The lawyer governments on probes into weekend, the company said affidavit of over 200 pages, requests for comment. the Irish Stock Exchange. on EU passporting rights to senior counsel Sean Gillane also led the case against the the causes of the financial its board of directors was supported by hundreds Brussels-based Euroclear settle trades in London. and Richard Fleck, a former TD Paul Murphy and five crisis in 2007 and 2008. Fleck “taking legal advice as to of pages of appendices. An inspector calls, page 5 said it decided not to proceed It said recent agreement on with an Irish-based central a 21-month transition period securities depository (CSD) after Brexit would allow it to following discussions with continue to settle Irish the Central Bank of Ireland securities transactions on an and Bank of England. Central interim basis after Britain Bank authorisation is leaves the EU in March 2019. VIKINGS RAID THE BANK required to establish a CSD in Euroclear said it would Mondi lines Ireland, the only EU country now explore other potential ADRIAN SHERRATT lacking its own securities long-term settlement settlement infrastructure. solutions for Irish securities. Share trades executed in The Irish Stock Exchange Dublin are currently settled declined to comment. on Euroclear’s Crest Finance minister Paschal up package system in Britain. Donohoe said last summer “Prior to any applicant that an Irish CSD “would receiving an authorisation, it best ensure the smooth must be in a position to continuation of settlement demonstrate compliance services to market with relevant legislation and participants and, in doing so, for Smurfit have robust governance support financial stability”. arrangements with effective The Irish Stock Exchange local operations to allow was sold for €159m last Kappa for supervision by the week to Euronext. C&C sees joy in bid Company eyeing merger Tony Smurfit, the grandson of the founder of Smurfit Kappa, is known to to form paper giant and dislike International Paper’s culture, for Conviviality’s stave off hostile US bids whereas he is said to admire and respect Mondi, believing the group is a great pub supply division “capital allocator”. Ben Harrington Bankers said it was not clear whether Mondi had got as far as contacting Brian Carey C&C, which operates The FTSE 100-listed Mondi is studying Smurfit Kappa to discuss a deal. drinks wholesale the possibility of making a “white knight” Mondi, which is also listed in South C&C is in the running to buy businesses in Ireland and merger proposal to Smurfit Kappa to Africa, is known to be “very conserva- the wholesale division of Scotland, is unlikely to be create an £18bn (€20.5bn) paper and tive”, so financiers suggested it would Conviviality, the troubled UK interested in Conviviality’s packaging behemoth. tread carefully and might decide against drinks group. retail division. City sources said Mondi had begun pursuing a tie-up with Smurfit Kappa. The cider-maker has been Matthew Clark was working with advisers at NM Rothschild International Paper last week began strongly linked with a founded in 1810 and was and UBS on whether it would be feasible contacting Smurfit Kappa’s largest share- potential bid for Matthew once a quoted company. to launch a proposal to combine with holders, telling them there were no Clark, which supplies 20,000 Constellation Brands Smurfit Kappa that would be attractive to pubs in Britain. bought the company in 1998, both the Irish company’s management Trading in Conviviality and it was later owned by team and its shareholders. Smurfit chairman shares was suspended on the Accolade Wines and Punch The move to study a merger comes as Liam O’Mahony London stock market last Taverns. Conviviality paid Smurfit Kappa, the Dublin- and London- said the move month after the company £200m for Matthew Clark listed packager, attempts to fend off a was ‘highly discovered an unpaid tax bill in 2015. €9.5bn takeover bid from US raider Inter- opportunistic’ of £30m (€34m) to Her C&C was connected to a national Paper. Majesty’s Revenue and possible purchase of the International Paper, which is being Customs. The bill was due to business at the time of the advised by Deutsche Bank, has so far The fifth season of the TV series at peaks of filming in the The productions are financed be paid by March 29. sale to Conviviality, and tabled two takeover offers for Smurfit Vikings, which is shot at ambitious series. with funds from tax-break Last week Conviviality currently distributes its Kappa. Its latest offer amounts to €25.25 a obstacles to a hostile approach. A source Ashford Studios in Co Wicklow, The cast of the fifth season private investors, with €45m announced plans to call in cider portfolio in the UK share in cash and 0.3028 new IP shares familiar with the transaction said that it cost more than €76m to make included former WWE star of investor money flowing into administrators within 10 days through AB InBev. for each ordinary Smurfit Kappa share. was “really difficult to see a path forward and had a wage bill of almost Adam “Edge” Copeland, the fourth season of 16 “unless circumstances The Irish company is Smurfit Kappa rejected International given the total lack of engagement from €40m, writes Gavin Daly. pictured, who played a warrior episodes in 2015. The fifth and change”. likely to face stiff competition Paper’s second bid last week, saying that the Smurfit board”. The production of the series called Kjetill Flatnose. sixth seasons of the series each It has been reported that from Marston’s, a British the offer “fundamentally undervalues” The US company says that it has identi- spanned 2016 and 2017, and The sixth series of Vikings, an have 20 episodes. the company directors will brewer and pub owner, the business. fied up to $450m in synergies if the two involved an average of 246 Irish-Canadian production for Ashford Studios was opened continue to seek buyers for all according to analysts. A Smurfit Kappa statement added: companies merge. About half of the cost acting crew and 230 people the History Channel, is currently in 2012 by the businessman Joe or parts of the business. Several retailers and “The board is resolute in its belief that the savings would be in sourcing materials taking part in stunts, according being filmed at Ashford. O’Connell. He was granted Matthew Clark is regarded convenience store operators best interests of the group’s stakeholders and transport, with up to 20% in sales to company filings. Vikings is produced by permission last month for a as the most saleable of have been touted as possible are served by pursuing its future as an and general administration, which would The directors of the Vikings Metropolitan Films, whose €90m expansion that will add Conviviality’s businesses. The buyers of Bargain Booze and independent company.” include staff costs. company said, however, that directors are Morgan 12 buildings, including film and group also owns Bibendum, Wine Rack. Chairman Liam O’Mahony described Additional reporting: Brian Carey “a significantly higher number O’Sullivan, James Flynn and television studios, workshops a wine distribution business, Bargain Booze was once the approach as “highly opportunistic”. of employees” were involved Ronan Flynn. and a visitor centre. and the Bargain Booze and part of the Irish convenience Industry sources said chief executive Agenda, page 2 Wine Rack off-licence chains. retail group BWG. The Sunday Times April 1, 2018 5 BUSINESS

A subcommittee of INM directors found nothing untoward, and an inde- pendent review by the former Irish Bar INM CHIEFS chairman David Barniville and ex-PwC managing partner TAKE CHARGE Stephen Kingon also examined that issue. It is understood Pitt gave additional The ODCE application for inspectors information to the ODCE last year, while to be appointed to INM comes as the Ryan Preston, chief financial officer at company’s board and management INM, also made a protected disclosure are grappling with plans to overhaul internally at the company. its business. A four-month review of Those disclosures are believed to have the company’s operations by pointed the ODCE towards the alleged consultants EY was presented to the data breach. In August last year, the board last month and outlined to watchdog twice used its powers to make senior staff at an event at Croke Park statutory demands on Buckley to pro- in Dublin last week. duce certain documents and correspond- The plan includes introducing a ence and explain their significance. paywall on the INM newspaper Facing an ODCE deadline of November websites and pursuing digital 17, Buckley produced 275 documents but subscriptions to plug the gap left by claimed legal privilege over 11 of them. declining advertising and circulation The ODCE issued proceedings on Novem- revenues. Michael Doorly, chief ber 23 to get a ruling on the 11 documents. executive of INM, has said the plan Sources said INM was in the curious posi- will involve specialising in certain DUMMY PIC tion of being in the dark about exactly areas and the company will have to what Buckley had sent the enforcer. invest in the transition. “The company has fully co-operated “Before you start looking at with the ODCE,” said one source. “But the charging for services, the service has FOR TESTING PURPOSES ONLY! company does not see the correspond- to be pretty decent and it needs to ence between the ODCE and Leslie.” have value,” he said last month. It is understood Drennan’s affidavit Schibsted, a Scandinavian media highlights apparent differences between group that owns Irish site DoneDeal the data given to the ODCE by INM and and part of property site Daft.ie, is the information Buckley was separately seen as a model for the future of INM. supplying. The “parallel narratives” are The Oslo company owns the largest set out in detail in the ODCE affidavit papers in Norway and Sweden but seeking the inspectors’ appointment. has invested widely in digital assets Buckley has his own legal advice from and has interests in 22 countries. Kenan Furlong, a partner in litigation and Schibsted is also seen as a dispute resolution at A&L Goodbody potential acquirer of some or all of solicitors in Dublin. Furlong heads the INM. A Schibsted spokeswoman said law firm’s white-collar crime group and last week it did “not comment on its corporate reputation team, which rumours or speculation” as a policy. includes advising on whistleblowing complaints and crisis communications. Court papers filed in December for court action being taken by the ODCE to the ODCE application for documents appoint the inspectors. It is understood from Buckley show the enforcer had Drennan’s affidavit contains information asked him about the circumstances in of which the INM board was not previ- which a company called Trusted Data ously aware, including text messages and Solutions (TDS) was given access to the emails sent by Buckley. INM technology systems. TDS specialises The ODCE has also received informa- in data recovery and accessing archived tion from Henry and Mizak, the IT expert, emails (see panel, below), but the INM according to sources. It is understood the board did not know it had done work at suspected data breach took place in late INM until late last year. 2014. The former chief executive Vincent Buckley was asked what benefit INM Crowley had stepped down in May that received, who paid the bill to TDS, and year and INM was run by a committee of the names of other people who might four directors, including Buckley, until help the ODCE inquiry. The chairman Pitt joined that October. told the ODCE that access was given to The ODCE believes Buckley intro- TDS as part of a “cost-reduction exercise” duced Henry and Mizak to INM, leading at INM, which “necessitated the engage- to the hiring of TDS. The tech company ment of external technical expertise”. was given access to all INM’s systems, Days after those details emerged, though there was a specific trawl for data David Harrison, an INM non-executive on 19 named individuals. The bill for director representing the businessman TDS’s services was paid in 2015 but INM Dermot Desmond, who has a 15% stake in was not involved in the transaction. INM, resigned from its board. INM’s A source said the board and manage- senior independent director Jerome ment of INM did not become aware of Kennedy had already resigned last the issue until they were sent a copy of August, while director Allan Marshall the invoice by the ODCE in August last stepped down at the March 1 meeting. year. It is understood the ODCE affidavit In affidavits, Buckley named two IT highlights the links between the various security specialists, John Henry and IT experts and O’Brien companies. Derek Mizak, in connection with the cost- It also lays out the timeline of the data cutting exercise. Henry, a former Irish breach and a court action launched by Army officer, runs Specialist Security O’Brien in October 2015 against Red Flag Services in Dublin, which provides Consulting, a public affairs company. Red security services to Buckley personally. Flag is owned by former INM executive It was Henry who introduced Buckley Karl Brophy and chaired by former INM to Mizak, a cyber-security consultant and chief executive Gavin O’Reilly. lecturer who was chief technology officer O’Brien won a protracted corporate In an interview after those results, at a company called Resilient Defence battle against Sir Anthony O’Reilly, the Doorly was quoted as saying: “We really until November last year. Mizak “pro- father of Gavin and also a former chief need to bring it to a conclusion. With the vided expert technical advice and assist- executive of INM, to become the group’s new board and new management it is ance in the cost-reduction exercise”, largest shareholder in 2012. O’Brien’s time to bring it to a close, but the ODCE Buckley said, and is understood to have continuing case against Red Flag alleges might not believe that.” introduced TDS to the situation. that the group was involved with others The ODCE clearly does not believe Henry and Mizak both had connec- in a conspiracy against him. that. Ian Drennan, the director of corpo- tions to Reconnaissance Group in Dublin, Red Flag strenuously denies the char- rate enforcement, has filed an affidavit of which has provided security services to ges. That litigation has since drawn in a more than 200 pages and boxes of appen- Digicel, O’Brien’s telecoms group in the cast that includes businessman Declan dices supporting the application for the Caribbean and Central America. A&L Ganley, former TD Colm Keaveney and appointment of senior counsel Sean Goodbody’s Furlong is also described as former IBRC executive Tom Hunersen. AN Gillane and corporate governance expert “solicitor to Mr Derek Mizak” in the court After a board call last Saturday even- Richard Fleck as inspectors to INM. judgment in the case against Buckley. ing, the directors of INM are taking legal Gillane is a well-regarded lawyer, The details and nature of the sus- advice on whether the High Court will whose practice includes a speciality in pected data breach are at the heart of the have sufficient grounds to allow the criminal law. Fleck, made a CBE, is a appointment of inspectors. The com- former partner at Herbert Smith Free- pany is advised by David Byers, a corpo- hills lawyers in London. He is also a rate governance partner at McCann former chairman of the UK financial ‘DATA IS THE Fitzgerald, the company’s law firm. reporting review panel and UK auditing One source said: “The new directors practices board. Sources said the ODCE NEW GOLD’ are scratching their heads about all of affidavit was highly detailed and covered this. And if the inspectors are appointed, the Newstalk debacle, the suspected data Trusted Data Solutions (TDS), the all the former directors are all going to get breach and a number of other issues of tech company given access to the IT dragged back in and asked questions.” INSPECTOR concern at INM. Of the issues, the data systems at INM, was founded in 2009 Alongside McLennan, the new board breach, when an external IT firm was and specialises in the “identification, members are John Bateson, head of given access to INM’s systems in 2014, is restoration and conversion” of large Desmond’s International Investment considered the most significant. amounts of corporate data, including and Underwriting; former KPMG audit It is understood Drennan’s affidavit recovering archived emails. partner Seamus Taaffe; and Fionnuala states his belief that Buckley was directly The company has its head office Duggan, managing director of KNect365 linked to the circumstances in which the on Madison Avenue in New York and Learning. The other INM directors are external company was given access to set up its international headquarters Doorly, Len O’Hagan, Terry Buckley, company systems, without INM’s knowl- in Cardiff. In a video published on the Paul Connolly and Triona Mullane. edge. The ODCE also believes the bill for TDS website last year, chief executive “This is a matter for the company but the IT firm was paid by an Isle of Man Chris Clark said: “The business that clearly also a matter for Leslie Buckley,” company controlled by Denis O’Brien. we work with is helping customers said a source close to INM. “He was in situ CALLS The ODCE declined to comment on the access their data, and data has for some or all of the period.” Last weekend, the script changed scope of its investigation or the contents changed a great deal in its INM said an inquiry by inspectors A High Court investigator could soon be dramatically. Following queries from The of its affidavit last week. A spokesman for importance in the corporate world. could result in “material costs”, which Sunday Times, INM issued a statement at Buckley also declined to comment. Data is the new gold.” would dent its profits. Those costs would knocking at the door of Independent 8pm last Saturday confirming the ODCE “All roads lead to the data issue,” said a Clark was a partner at UK-based come on top of significant expenses was to ask the High Court to approve the source close to the company. Airgead Investments from 2000 to already incurred in relation to the exist- News & Media to quiz management over a appointment of inspectors to INM, with Another source said: “If the ODCE was 2002, and was managing director of ing ODCE investigation and a €1.5m sev- wide-ranging investigative powers. just going to court [seeking the appoint- Belfast software group Datactics erance payment to Pitt. suspected data breach, writes Gavin Daly The court can appoint inspectors if it is ment of inspectors] on the basis of the from 2002 to 2005, according to his INM’s share price dipped over 6% last satisfied “there are circumstances sug- Newstalk issue, it wouldn’t stand a LinkedIn profile. South African week after the ODCE news, valuing the eslie Buckley took his place news,” he said, a phrase he had high- gesting that the affairs of the company chance. This is about sensitive informa- Robert Breen is co-founder and chief business at €127.5m, despite its €91.5m behind the podium and peered lighted in orange marker. have been conducted in an unlawful tion and if it was given to third parties.” operating officer of TDS, whose cash balance, and earnings before inter- at the paperwork in front of The seven words acknowledged an manner” or on certain other grounds, Pitt’s initial protected disclosure to the parent company is backed by est, taxes, depreciation and amortisation him. “I have been told to stick to extraordinary 18 months at INM in which noted INM. The ODCE application, filed ODCE related to a proposal in late 2016 investment group Park Vale Capital. of €41m. The company said it was focused the script, so let’s do that,” said a dispute between Buckley and former in the late afternoon of the last day of the that INM would buy Newstalk. A dispute TDS’s UK-based operation lost on its day-to-day business continuing as Buckley, on his last outing as chief executive Robert Pitt led to the Hilary legal term, will be considered by arose after Buckley proposed that £59,000 (€67,000) in 2014 but normal, including the execution of a new chairman of Independent News latter turning whistleblower and ulti- the judge Peter Kelly, president of the INM should pay significantly more for jumped to a profit of more than strategy (see panel, above). & Media (INM), at a sparsely mately leaving the company. An investi- High Court, on April 16. Newstalk than Pitt believed the station £798,000 a year later. Profits fell back In an affidavit in the case taken against attended extraordinary meet- gation into INM by the Office of Director The news came as a thunderbolt to was worth, and no bid was ever made. to £30,899 in 2016. As well as its him by the ODCE, meanwhile, Buckley ing as Storm Emma approached of Corporate Enforcement (ODCE) had INM’s nine-strong board, four of whom “Newstalk is a sideshow,” said a bases in New York and Cardiff, the noted: “I make my living as a company Dublin on March 1. focused first on a proposed acquisition of were appointed as recently as March 1. source. “But it became a catalyst for company has “processing facilities” in director.” An investigation by inspectors, LIn a matter of minutes, Buckley, a long- the radio station Newstalk, owned by Chief executive Michael Doorly, an INM things to kick off between [Robert] Pitt London and LA. It announced a new if appointed, would last a protracted term associate of INM’s 29.9% share- O’Brien, and then on a suspected data veteran and former chief risk officer, has and Leslie [Buckley]. There were person- data facility in New Jersey in January. period of time and could have serious holder Denis O’Brien, had stepped down breach at the company. been in the top job only since October, alities at play, and it built momentum.” implications for all parties involved. from the chairman’s role he occupied for Just three weeks before the when he replaced the departed Pitt. five-and-a-half years. Four new directors extraordinary meeting, Buckley had won The board had felt the ODCE probe were voted on board, including UK media a favourable ruling in a court case taken into the company was winding down and veteran Murdoch MacLennan, who against him by the ODCE, after he that, in any case, INM had co-operated would later be named INM chairman. claimed certain documents sought by the fully. Announcing its 2017 results on Before leaving the stage, Buckley agency were legally privileged. March 9, the media group noted that it unfolded a page-and-a-half of scripted “It certainly hasn’t been dull,” an “continues to comply with requirements comments, his “few final words” on upbeat Buckley told the meeting, reading from the ODCE and is taking all necessary INM. “Sometimes we too can become the from another highlighted section. steps to meet the ODCE’s requests”.