ACCORDING TO AN official appointed by the High Court, it is necessary to investigate a transaction which permitted loans given by Anglo Irish bank to the family of former chairman Sean Fitzpatrick to be paid off.

The official made the comments in a report that was sent to creditors today. Tomorrow, during a High Court action, Anglo is expected to apply to appoint a trustee to oversee Mr FitzPatrick’s bankruptcy proceedings, RTÉ reports.

An investment made by FitzPatrick in a Nigerian oil field with Lar Bradshaw, who was also a director of Anglo, has been highlighted in the report. The €27m loan given to the men was backed with cash of €21m, which was held on deposit by Anglo.

Last year, after Anglo was nationalised, Fitzpatrick’s €15m deposit was moved within the bank – at the same time that loans taken out by the Fitzpatrick family were repaid.

The High Court official said that the repayment scheme was on “very beneficial” terms to Fitzpatrick’s wife and three children. He added that an effect of the transaction was to make Bradshaw liable for the €27m loan taken out for the Nigerian oil field investment.

The official has said it is necessary to investigate the loan repayment transaction and decide whether it amounted to a settlement under the Bankruptcy Act.