Irish bank chief quits as home is searched by raid police

Times
By David Lister in Belfast

THE chairman of the Bank of Scotland in Ireland resigned last night after his home and offices were searched by Irish police investigating the multi-million pound Northern Bank robbery in Belfast.

Phil Flynn, who in the early 1980s was a vice-president of Sinn Fein, also stood down as an Irish government adviser on industrial relations and from two other government posts.

Mr Flynn’s property was raided after it emerged that he was a non-executive director with Chesterton Finance, which is being investigated by Irish police investigating money-laundering.

Chesterton Finance is owned by Ted Cunningham, a Cork businessman who is currently helping Garda with their inquiries into the money-laundering operation. Some £2.3 million was found in compost bins in the basement of the bungalow outside Cork that he shares with his partner, Cathy Armstrong, who was also detained. The money was taken away inside 17 bulging brown sacks by detectives carrying sub- machineguns.

http://www.timesonline.co.uk/newspaper/0,,175-1490574,00.html

Police are examining a sum of money found in Belfast which they say could be linked to the Northern Bank robbery.

It was found at the Newforge Country Club on Friday. Police say the incident may simply be an effort to distract inquiries into the £26.5m Belfast raid.

The money - not believed to be substantial - is thought to include Northern Bank notes.

Police say a man rang the ombudsman claiming to be a policeman and told them where to find the money.
http://news.bbc.co.uk/1/hi/northern_ireland/4278935.stm

Mr Flynn, 61, has said that he travelled to Bulgaria with Mr Cunningham two weeks ago to explore unspecified investments, including property.

Noel Conroy, Commissioner of the Garda Siochana, said that his detectives intended to travel to Bulgaria to investigate IRA money-laundering.

Last night Mr Flynn, who also resigned as chairman of the Irish national implementation body overseeing decentralisation as well as from the board of health insurer VHI, said: “I don’t believe that the money has been laundered through Chesterton. I have no involvement with money laundering, full stop — for the Republican movement or for anybody else.

“The sensible thing is to step aside. This will sort itself out and when it does you’ll see me back.”

http://www.timesonline.co.uk/newspaper/0,,175-1490574,00.html

EDIT: More from The Times:
Company director has close links with the Establishment
By Caroline Merrell
PHIL FLYNN was, until last night, one of Ireland’s most prominent bankers, having made a 30-year journey from revolutionary to paid-up member of the Irish Establishment.

Mr Flynn, a former Sinn Fein vice-president, who was educated at Ruskin College in Oxford and the London School of Economics, insisted yesterday that Chesterton Finance — a tiny Cork-based lending company of which he is director — was “clean”, before he eventually resigned.

One of Chesterton Finance’s other directors, Ted Cunningham, is in custody after police allegedly found £2.3 million at his home.

Mr Flynn stepped down as chairman of the Bank of Scotland (Ireland) last night, but continued to assert that he had not done anything wrong. In a statement, he said: “I am guilty of no wrong-doing, but the Bank and I have decided that it is best I step down from my position as non-executive chairman with immediate effect in order to ensure Bank of Scotland (Ireland) is not affected by recent publicity.”

http://www.timesonline.co.uk/newspaper/0,,175-1490566,00.html

Saturday, February 19, 2005 Posted: 1258 GMT (2058 HKT) DUBLIN, Ireland (AP) -- A private banker who had more than £2.3 million ($4.4 million) hidden in his home was freed without charge Saturday as police continued searching financial records nationwide for clues into an alleged IRA money-laundering ring.

Ted Cunningham, 56, refused to comment as he left a police station in Cork, southwest Ireland, after a two-day interrogation. Earlier, police also freed without charge his domestic partner, Cathy Armstrong.

Police said they were preparing a book of evidence for state prosecutors to consider against Cunningham, a common practice in Ireland, where authorities often take weeks to mull over information before taking a decision.

Police said they were making similar deliberations against four other people arrested in connection with this week's raids on homes and businesses across Ireland and later released. <snip>

http://edition.cnn.com/2005/WORLD/europe/02/19/nireland.bank.ap/