Ireland Sticks With Central Bank Pick Amid Controversy

(Bloomberg) -- Ireland's government will stick with Gabriel Makhlouf as its pick for central bank governor, despite his rebuke for failing to take responsibility for a breach of security around sensitive budget information in New Zealand.

Makhlouf, New Zealand's Treasury Secretary, will start his new job in September, Irish Finance Minister Paschal Donohoe confirmed to reporters in Dublin on Thursday.

New Zealand State Services Commissioner Peter Hughes on Thursday released the findings of an investigation into Makhlouf’s handling of the budget breach in his role. Hughes said while Makhlouf’s actions fell well short of what he expected, they did not warrant dismissal and Makhlouf did not to offer his resignation.

Donohoe said while he wished the incident hadn't happened, Makhlouf had 30 years of ``unblemished'' public service previously. Donohoe welcomed the finding that he had acted in good faith, in a politically neutral manner.

In a statement, Makhlouf said: “I apologize that budget information was not kept secure.”

“The report confirms I acted at all times in good faith and with political neutrality,” he said. “It also confirms that I acted reasonably, other than in my descriptions of the incident. I am pleased that my honesty and integrity are not in question.”

To contact the reporter on this story: Dara Doyle in Dublin at ddoyle1@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

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