CRH 'at fault' over unlicensed bank

BUILDING materials group CRH was partly to blame for allowing its chairman to run an unlicensed bank out of its offices in Ireland for eight years, an investigation by the Irish government has found.

CRH said today the finding appeared to be based on the assumption that its corporate governance systems should have detected the activities of the late Des Traynor, who was CRH chairman between 1987 and 1994.

Ansbacher operated offshore bank accounts for some of Ireland's most high-profile businessmen. They were unveiled only as part of an investigation into the financial affairs of Charles Haughey, the former Ireland Prime Minister.

The report said Traynor, who was Haughey's accountant, wrongfully used CRH facilities and personnel to help run Ansbacher. Ansbacher did not have a banking licence and CRH did not authorise Traynor to run it from the company's offices.

It found CRH had to take some responsibility for Traynor's activities. But CRH appeared to question this today, saying the information contained in the report was unavailable at the time.

It is understood the report has been passed to the Financial Services Authority, although it is unclear whether it plans to pursue the matter.