Philip Lynch (born 1946) is a prominent Irish businessman who has held the position of chief executive at two Irish public limited companies and multiple senior directorships including chairman of the board of An Post. In October 2010, he was forced by the then Irish minister for health, Mary Harney, to resign his position as chairman of the National Paediatric Hospital Development Board over his desire to relocate the new Irish Children's Hospital from Dublin City centre to a site near the M50 motorway [1].
Contents |
Lynch was born at Innishannon, County Cork. He was educated at Hamilton High School, County Cork, Copsewood College in County Limerick and studied accountancy and economics at Waterford Regional Technical College.[2]
Former Chief Executive of IAWS Former Non Executive Director ARYZTA AG Former Non Executive Director A.Hiestand Holding AG Chief Executive Officer and Executive Director One51 plc Director Irish Pride Bakeries Ltd. 1996-Present Independent Non-Executive Director, Member of Nomination Committee and Member of Remuneration Committee FBD Holdings plc 2001-Present Non Executive Director, Member of Nominations Committee and Member of Remuneration Committee Heiton Group plc 2003-2005 Former Non-Executive Director and Director of Irish Food Marketing Irish Life & Permanent Group Holdings plc 2004-Present Non-Executive Director, Chairman of Sub-Committee, Chairman of Remuneration Committee and Member of Nomination Committee C&C Group plc [3]
In 2007, he was appointed[4] by Minister for Health, Mary Harney as chairman of the National Paediatric Hospital Development Board. This was to be a €650m project to build a new national children's hospital adjacent to the Mater Misericordiae University Hospital in Dublin city centre. The new hospital would amalgamate the secondary and tertiary care functions of three existing children's hospital in Dublin: Crumlin Hospital, Temple Street Hospital and Tallaght Hospital.
In 2010, Lynch met the Crumlin Hospital Foundation to discuss the possibility of relocating the new hospital to the Crumlin Hospital site. He also met with property developer Noel Smyth to discuss relocating the hospital to a site outside the M50 owned by Smyth. When Lynch sought to present to the board a proposal to build the new hospital on Smyth's land, he was obliged to resign his position by Mary Harney. He was replaced as chairman by businessman John Gallagher[5].
In March 2011, after a new health minister was appointed following a general election, Lynch went on radio to make the case that the a city centre location for the new hospital would be inaccessible and have parking difficulties. He said that the 'people who designed the M50, when that was agreed on, everything was going to happen outside of that' and described the city centre as a 'cul-de-sac'[6]. He described the decision to locate the hospital in the city centre as 'political'[7]. He claimed that the city location was chosen because 'a deal was done on the site....by an eminent politician'.
In 2010, Philip Lynch was paid €1.4m including bonus as chief executive of One51 plc. A shareholder revolt ensued at the company's AGM in July. Rebel shareholders led by Gerry Killen, Alf Smiddy, Mike Soden and Peter Brennan, criticised Lynch's remnueration in a year in which the company reported a loss of €11m and challenged his reappointment [8]. Lynch survived the revolt.
In March 2011, a court hearing was held in relation to an unpaid loan for €25m owed to AIB by Lynch, his wife and four children. The loan was secured on land in Waterford. In his defence, Lynch says that the loan was made on a non-recourse basis[9]. On December 8th, 2011 the Irish Courts found in favour of AIB.
On the 1st July 2011 Lynch was apparently dismissed from One51.A dramatic drop in share price, shareholder discontent with his renumeration package and a Revenue investigation into the routing of patent royalties into a bonus scheme which was paid directly to himself and other individuals were believed to have contributed to Mr. Lynchs dismissal.
Mr Justice Micheal Peart today dismissed claims by Mr Lynch, his wife Eileen and four children - Judith, Phillipa, Therese and Paul - they are not liable for the €25 million loan made to themselves and developer Gerry Conlon in February 2007.
The Lynch family claimed they always understood the loan would involve AIB having no recourse to them individually for payment and its recourse would be limited to the lands. The court heard the current value of the lands has been estimated about €4 million while in 2007 values as high as €80 million were suggested.
In a lengthy judgment, the judge found the family had failed to make out a case against AIB such as disentitled the bank to repayment. He also rejected the family's claims they are entitled to be indemnified against the AIB claim by two law firms - Matheson Ormsby Prentice Solicitors and LK Shields Solicitors - over alleged negligent advice concerning the loan.
"The family have only themselves to blame for the predicament in which they find themselves," the judge found.'
The case has been adjourned to December 16 when AIB is likely to seek judgment orders against the Lynchs, and the court will also deal with the bank's separate claim against Mr Conlon over the loan.
The long-running case is expected to have run up huge legal costs, with some experts estimating the bill could be as big as €5m.
http://www.irishtimes.com/newspaper/breaking/2011/1208/breaking30.html
http://www.irishtimes.com/newspaper/frontpage/2011/0702/1224299942655.html?via=mr