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Desmond Traynor (1931-1994) was an Irish businessman and financier, the director and chairman of several leading Irish businesses, including Guinness and Mahon, CRH plc. and Aer Lingus. Over three decades he was the chief operator of a secret and illegal offshore banking scheme which faciliated tax-evasion by some of Ireland's wealthiest and most influential citizens. When the scheme was uncovered following his death, it sparked a number of political corruption scandals. His role in the Ansbacher scheme and his position as a close friend and financial advisor of the former taoiseach Charles Haughey were closely scrutinised by two separate judicial tribunals of Inquiry, the McCracken tribunal and the Moriarty tribunal in the 1990s and 2000s.

LIfe and Career

Traynor was born in Dublin in 1931 and was educated at C.B.S. Westland Row and the College of Commerce in Rathmines. In 1950 he began working as a clerk with the chartered accountancy firm Haughey Boland and Company where he was articled to future Fianna Fail Taoiseach Charles Haughey. He remained at the company until 1969, when he joined Guinnes and Mahon. In 1971, he became the director of the newly-formed subsidiary Guinness and Mahon Cayman. In 1982, Traynor was appointed to the board of Aer Lingus by the newly-formed Fianna Fail minority government. In 1987, he was appointed Chairman of Irish building materials company CRH plc. Traynor was married to Mary Josephine Traynor and had six children. He died on 11 May 1994. Mr Traynor appears to have been a man of formidable capabilities, who went on to become one of the outstanding financiers of the 1980s and early 1990s. He was reserved to the point of taciturnity; a man who could truly be said not to have permitted his left hand to know what his right hand was doing.

Mr Traynor would remain on the board of directors of Guinness and Mahon until 1986. He would hold the position of from 1987 until his death in 1994 and became without doubt one of the leading figures in the Irish business community. When, in 1990, the Corporate Finance Department of Henry Ansbacher & Company in London had instructions to convert the Irish Permanent Building Society from a mutual society into a bank, Mr Richard Fenhalls, Henry Ansbacher's then Chief Executive, identified Mr Traynor as a possible candidate for the position of Chief Executive of the new bank. Mr Traynor would remain on the board of directors of Guinness and Mahon until 1986. He would hold the position of Chairman of CRH plc from 1987 until his death in 1994 and became without doubt one of the leading figures in the Irish business community.

Ansbacher report: Almost without exception his personal qualities were emphasised by those with whom he came into contact. The Inspectors have discovered no case where any of the persons who entrusted money to him were themselves treated by him other than fairly. He was a man of immense energy who was very well organised in his business affairs.

Management of Ansbacher Accounts

Mr. Traynor was one of the founders of GMCT, together with John Collins and the late John Furze. For many years until his death, he was the Chairman of GMCT and Ansbacher, and, although described as a non-executive director, carried out executive functions in Ireland, where he was its principal representative Ansbacher and Hamilton Ross, while trading in Ireland, were potentially liable for Irish Corporation Tax. There is evidence tending to show that Mr Traynor through his actions facilitated the evasion by each of these companies of its tax responsibilities. Ansbacher effectively operated as an unlicensed bank in Ireland.Offered back to back loans.. Ansbacher carried on business in the State through a branch or agency in that they have concluded that Ansbacher had an established place of business within the State. The consequence is that the profits of such branch were liable to corporation tax and the appropriate tax returns and payments should have been made to the Revenue Commissioners.

Relationship with Charles Haughey

Traynor first struck up a close friendship with Haughey while working at Haughey Boland. From 1960 onwards, he managed Haughey's financal affairs. When Haughey became the leader of Fianna Fail in 1979, Traynor approached AIB to resolve hs significant debts with the bank. arranged Dunne payment.

Chairman of CRH

Prior to 1970, Traynor had been a non-executive director of Irish Cement Limited. Traynor played a central role in the merger of Irish Cement with Roadstone in 1969. Mr Traynor became a non-executive director of CRH from the date of its formation. In 1987, he was made chairman of the company, a position he held until his death. In his period as chairman, CRH's turnover increased from €916.2m to €2,064.8 m (2.25 times) and market capitalisation increased from €433.26 m to €1,584.63 m (3 .75 times). The offices of CRH were used as a headquarters for the scam.Approximately two days a week would have been spent on CRH business with the balance of the week being spent pursuing his other interests; this with the knowledge of crh... CRH facilities were also used to enable clients make lodgements to their Ansbacher accounts. Four of its employees were engaged in the business, including one who kept accounts and another who was sent all over town to deliver Ansbacher booty to defrauders.The Inspectors are satisfied that CRH did in fact assist Ansbacher in the carrying out of its business in the manner described above.

eight directors of CRH were, in their personal capacities, clients of GMCT/Ansbacher. CRH as a corporation cannot be said to have knowingly assisted in the carrying out of Ansbacher's activities in Ireland. CRH must bear some responsibility for the fact that the activities of Ansbacher continued for the period 1989 to 1994.

After the publication of the report, Socalist Party TD Joe Higgins said in the Dail that it "beggar[ed] belief that the inspector’s report did not consider CRH to have corporate knowledge and responsibility for the Ansbacher fraud, considering the extent of the involvement of its chairpersons, chief executives and the majority of its board."

Reputation and Legacy

In 2007, the estate of Desmond Traynor made a settlement with the revenue commisioners of €4.053m as a result of undeclared income tax, residential property tax as well as a Revenue Ansbacher investigation.

External links

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