DRUMM EXPELLED FROM CHARTERED ACCOUNTANTS BODY - Former Anglo Irish Bank chief executive David Drumm has been expelled from Chartered Accountants Ireland (CAI) and fined €15,000 after a disciplinary tribunal found that he had "brought discredit" on himself and his profession for actions taken in the run-up to the financial crisis.
Mr Drumm, who is serving a six-year sentence for fraud imposed last summer, accepted allegations put forward by CAI's conduct committee in relation to his involvement in 2008 in Anglo transactions with Irish Life & Permanent (IL&P) and his bank's provision of loans to the so-called Maple 10 to buy shares in the bank, says the Irish Times. Mr Drumm, who led Anglo between 2005 and 2008, was found guilty in June last year for his role in the bank's fraudulent receipt of €7.2 billion of temporary deposits from IL&P in September 2008, giving investors the impression that the then-ailing lender's financial position was stronger than it actually was. Mr Drumm subsequently admitted to additional charges relating to Anglo Irish's provision of €450 million of illegal loans to a group of 10 businessmen - known as the Maple 10 - to buy shares in the company that year. Michael Staines, solicitor for Mr Drumm, told the 45-minute CAI disciplinary tribunal hearing in Dublin on Wednesday that his client accepted the allegations put forward by the CAI conduct committee, previously known as the complaints committee, in relation to both sets of transactions.
IMPACT OF BREXIT ON INSOLVENCIES WON'T HIT UNTIL 2020 - The true impact of a hard Brexit on businesses may not become apartment until next year, according to Deloitte.
With fewer than 100 days until the UK is due to leave the European Union, David Van Dessel, partner at the consulting group, said that if the country crashes out of the EU without a deal it could have a "material impact" on company bankruptcy levels in Ireland. This is more likely to be reflected in the 2020 insolvency statistics, reports the Irish Independent. "Directors are very slow to get external assistance when their business is experiencing financial problems. In particular, family companies deal with issues privately," Mr Van Dessel said. "The natural approach [when a company is in trouble] is to sell more, but sometimes the problem is greater than that. For companies in the front line of Brexit, while the financial impact may be quick, there will be a delay in the firm getting to insolvency. For many the last thing they will do is get external advice, making it harder to reach agreements with creditors," he added. Overall, the number of service sector firms filing for insolvency has jumped in the six months to 30 June. The sector - which spans industries from bars and hotels to banking - was responsible for two out of every five insolvencies during the period, up 27% on last year, according to figures from Deloitte.
KENMARE RESOURCES: NO 'TAX BENEFITS' FROM FIRMS IN MAURITIUS - Irish stock market-listed mineral exploration company Kenmare Resources has said it does not benefit from low corporate tax rates in Mauritius after two of its affiliate companies were included on a list of companies linked to the African island nation.
The entities - Kenmare Moma Mining Mauritius Ltd and Kenmare Moma Processing Mauritius Ltd - were included on a long list of companies published by the International Consortium of Investigative Journalists, or the ICIJ, which were incorporated in Mauritius, writes the Irish Examiner. Kenmare has no mining operations in Mauritius, but it operates one of the world's largest mineral mines in Mozambique. The mining company - which has its shares listed on the Irish and London stock exchanges - operates the Moma titanium mine in Mozambique and directly employs 1,400 people at the extensive site. The mine produces 7% of the world's ilmenite - the main source of titanium metal - and titanium dioxide, which is used as a white pigment in paint. It also produces 4% of the world's zircon, a source of zirconium metal. The company said its subsidiary companies are registered in Mozambique and that it pays taxes in that country.
CUSTOMERS WITHDREW £2 BILLION FROM METRO AFTER BLUNDER - Metro Bank has suffered a £2 billion drop in deposits after customers took fright earlier this year when an accounting blunder caused fears over the lender’s future.
It announced last night that its total deposits had fallen to £13.7 billion at the end of June from £15.7 billion on December 31, which it said was driven by "a limited number of commercial customers" withdrawing funds during the second quarter. Its first-half pre-tax profits slumped to £3.4 million from £20.8 million, writes The Times. Metro said this was partly because of the fallout from the discovery of the error in its loan-book in January, which has forced it to undertake a loan-by-loan review and implement new controls. The bank also confirmed in a separate statement that Vernon Hill, its controversial founder and a leading shareholder, would step down as chairman to make way for an independent successor. The American billionaire as not commented on the announcement. He intends to remain on the board as a non-executive. The results lay bare the damage that the scandal has inflicted on Metro, which is one of a host of upstart challenger banks that are trying to take on the UK's big high street bankers.