Senator Callely has previous with the building industry and it seems is now getting his fingers burnt as he also thought that getting into property was an easy way to make some money.
Senator Callely had to resign as a junior minister after having his house painted for free by a building contractor who was involved in public contracts. Only resign as a junior minister, nothing else for freebies from someone in the building industry – ah the life of a politician.
Investment bank Investec has taken a site owned by he Senator and three others into their own possession in an effort to protect their multi million Euro loan that was used to finance the property deal.
As well as losing the property the four have appeared to gamble their own personal worth on this deal by not having the land held in a company structure. This is a common problem for many in the property business at present. In normal times investors would have protected themselves again failure of a deal like this by having it in a limited company – however since the government made capital gains only 20% and corporation tax 30% investors have went for the money taking a bigger risk and seeming to care less about their own personal welfare.
These are the greedy people that we will be bailing out in the years to come.
