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Embattled Irish judge withdraws Euro bank candicacy

February 16, 2011

By Staff Reporter

By Andrew Bushe

DUBLIN — After three months of political upheaval, former Supreme Court judge Hugh O’Flaherty has done a U-turn and withdrawn as the Irish government’s candidate for a job as vice president of the European Investment Bank.

Since the announcement of his nomination on May 19, the judge’s candidacy has caused a major political row. The long-running saga has caused huge embarrassment to the government and damaged the credibility of Finance Minister Charlie McCreevy.

O’Flaherty, who’s 62, resigned last year in an unprecedented constitutional crisis surrounding the early release of a man convicted of drunk driving and causing the death of a mother of two.

The main opposition parties strongly criticized O’Flaherty’s nomination and it caused a backbench upheaval in the Progressive Democrat party, led by Tanaiste Mary Harney.

The controversy led to a byelection rebuff for a Fianna Fail candidate, unsuccessful legal challenges in the High and Supreme Courts, the resignation of a PD backbencher and a motion of no confidence being raised in the Dail.

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Following O’Flaherty’s withdrawal, the government could allow Denmark, which shares the job with Ireland and Greece, to make a nomination. However, government sources indicated that another Irish candidate will be put forward shortly.

O’Flaherty said in a letter to McCreevy on Monday that the decision to withdraw his name was "mine and mine alone."

The minister said he accepted the withdrawal with regret and had advised the EIB accordingly.

"I am disappointed at the decision, but I understand why Mr. O’Flaherty has taken this course," McCreevy said.

Opposition leaders had been demanding the government withdraw O’Flaherty’s nomination and claimed it was political cronyism.

They argued he should not be appointed to the £147,000 EIB job when the government had been threatening to impeach him last year and he had refused to cooperate with an Oireachtas committee.

Recent reports suggested O’Flaherty had not received sufficient votes from the EIB directors to proceed with the nomination process. He had received six voted by an Aug. 18 deadline but needs the support of a minimum of 13 of the 25 directors.

The case that led to O’Flaherty’s resignation revolved around Philip Sheedy, an architect who was convicted of drunk driving in March 1996. He was to sentenced to four years in prison in 1997 but was released early.

O’Flaherty had no direct connection with the case but gave advice to a sister of Sheedy when he met her with a friend on the street.

A report by the then Chief Justice Liam Hamilton, described O’Flaherty’s conduct as "inappropriate and unwise," though he accepted his involvement was grounded in a spirit of "humanitarian interest."

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