Taoiseach Enda Kenny has rejected claims the public interest directors appointed during the banking crisis had become “lapdogs” not “watchdogs”.

“Alan Dukes, former distinguished minister, is nobody’s lapdog,” Mr Kenny told Sinn Féin leader Gerry Adams.

Mr Adams had claimed of public interest directors: “We were told they were appointed to act as watchdogs.... but clearly they’re lapdogs”.

Mr Adams said he believed they were not there to act in the public interest but “they’re there to act in the political interest and to keep the status quo intact”.

Mr Kenny said Mr Dukes, public interest director and then chairman of the former Anglo Irish Bank until its liquidation, had said he was very willing to attend and answer questions at any inquiry that was established.

After the release of taped conversations between senior Anglo Irish directors, it emerged that the Central Bank had been unaware of their existence as was the Department of Finance.

Mr Adams said of directors appointed to the banks in crisis, it was “very clear that they’re not acting in the public interest. It’s my strong suspicion that they’re there to act in the political interest and to keep the status quo intact. That’s clear if you look at the record.”

He said the Taoiseach had got rid of the idea of a report card for Ministers “but surely if you look at the report card on these folks clearly there’s room to change that system.”

He said “we were told they were appointed to act as watchdogs.... but clearly they’re lapdogs”.

Some of these are still there Taoiseach on your watch. You can’t blame Fianna Fail...they’re described as public interest directors.”

Mr Adams said the contents of the tapes had scandalised so many ordinary, decent people.

“I can’t believe Fianna Fáil didn’t know what was going on. But I can’t believe that this Government didn’t know what’s going on either,” the Louth TD said.

He said Mr Dukes was a former Fine Gael. “He says he’s aware of the contents and ..we’re led to believe he didn’t tell anyone.”

The Sinn Féin leader asked who he was supposed to tell and “who were the other public interest directors who are still in place supposed to report back to”.

The Taoiseach said the public interest directors were appointed by late minister for finance Brian Lenihan. Mr Kenny said he had listened to Mr Dukes’ comments about the tapes.

Mr Dukes had clearly indicated that not only had he given all of the documentation he was in possession of to the gardaí, in respect of an inquiry following the warrants served by the gardaí. And as a public interest director he was more than willing to go before any such inquiry and answer any questions put to him about his knowledge.