Publication statements 2019

Public Statements 2019

  • Exclusion of Mr David Drumm from membership of Chartered Accountants Ireland

    24/07/2019 12:37:45

    At a Disciplinary Tribunal of Chartered Accountants Ireland ('the Institute') convened in Dublin today (24 July 2019), a member, Mr David Drumm, accepted the facts of a formal complaint brought against him by the Institute's Conduct Committee following the opinion certified by the Special Investigator, Mr John Purcell, that:

    ”In July 2008, being an officer of Anglo Irish Bank Corporation plc (‘the Bank’) permitted or authorised the Bank to give unlawful assistance to 10 customers of the Bank for the purpose    of, or in connection with the purchase of shares in the Bank contrary to Section 60 of the       Companies Act, 1963 (as amended) and in so doing, acted in a manner which brought discredit to [himself] and the profession of accountancy’ and

    ‘David Drumm, being the Chief Executive Officer of Anglo Irish Bank plc, (hereafter “the Bank”) did in relation to the September 2008 transactions between the Bank and Irish Life and Permanent, engage in conduct which he was aware or ought to have been aware was inappropriate such as to bring discredit to himself, and the profession of accountancy.

    In light of the above, Mr Drumm accepted that the appropriate sanction to meet the gravity of his conduct was exclusion from membership of the Institute and he consented to this.  Mr Drumm has further undertaken not to make any future application for reinstatement. 

    In the circumstances the Disciplinary Tribunal made an Order excluding Mr. Drumm from Membership of Chartered Accountants Ireland. 

    In considering additional sanctions and penalties, the Disciplinary Tribunal noted representations regarding Mr Drumm’s financial position.  It therefore accepted Mr Drumm’s offer of a contribution to costs of €15,000.

    Given Mr Drumm’s acceptance of the above matters, the Conduct Committee did not offer evidence in respect of certain other allegations set out in the Formal Complaint against Mr Drumm.

    Mr Drumm waived the 21 day period in which to lodge an appeal.

    Disciplinary matters in relation to Mr Drumm have now concluded.

    Note to Editors

    1. In 2009 the then Complaints Committee (now renamed Conduct Committee) of the Chartered Accountants Regulatory Board appointed former Comptroller & Auditor General, Mr John Purcell, as its Special Investigator to consider matters relating to Anglo Irish Bank plc with a view to establishing whether such matters might render Mr Drumm liable to disciplinary action under the Institute’s Bye-laws and rules of professional conduct.
    2. In December 2010, following Mr Purcell’s certification that, in his opinion, there existed certain prima facie cases against Mr Drumm, the Complaints Committee referred matters relating to Mr Drumm, among other issues, to a Disciplinary Tribunal.
    3. In March 2011, such proceedings were suspended at the request of the Office of the Director of Public Prosecutions until the conclusion of certain State prosecutions relating to Anglo Irish Bank plc. This suspension was lifted in mid 2018 following conclusion of the State cases.  At that stage, Chartered Accountants Ireland recommenced its consideration of this matter.
    4. The Disciplinary Tribunal is comprised of three members, only one of whom may be an accountant.  In practice, such Tribunals are chaired by a legal professional.  In considering appropriate monetary sanctions to impose on members and firms the Disciplinary Tribunal has regard to the sanction levels that applied at the time misconduct occurred.  In 2009, the maximum monetary sanction was a fine of €30,000 per individual member or, in the case of a firm, per principal.  Non-financial sanctions range from the ultimate sanction of exclusion from membership (reserved for the most serious cases) to a reprimand.

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