Dáil Éireann Debate, Wednesday - 26 May 2010
134 Deputy Damien English asked the Minister for Finance the position regarding the time frame for the two banking inquiries; if he is confident that both inquiries will report on schedule; and if he will make a statement on the matter. [22133/10]
View answerThe Government announced the establishment of an investigation into the banking crisis on 19 January 2010. This investigation will have two stages. For the first stage, the Government has commissioned two separate preliminary reports:
One report is being prepared by Professor Patrick Honohan, Governor of the Central Bank and Financial Services Authority of Ireland, on the performance of the functions of the Central Bank and the Financial Regulator over the period from the establishment of the Financial Regulator to the end of September 2008.
A second report is being prepared by Mr Klaus Regling and Mr Max Watson, who have been asked to conduct a preliminary investigation into the recent crisis in the banking system to assess what lessons can be learned to inform the future management and regulation of the sector.
I expect that both preliminary reports will be completed and submitted to me on schedule by the end of May 2010. I will then seek Government approval to lay both reports before the Houses of the Oireachtas. The second stage of the investigation envisages the establishment, following approval by both Houses of the Oireachtas, of a Statutory Commission of Investigation, pursuant to the Commissions of Investigation Act 2004. The terms of reference for the Commission of Investigation will be informed by the two preliminary reports.
135 Deputy Brian Hayes asked the Minister for Finance the reason Anglo Irish Bank recently appointed a company (details supplied) to carry out a full forensic examination into the accounts of Anglo Irish Bank, when this company was the group’s auditors before the bank effectively collapsed and was nationalised by the State; if he will confirm that this is the actual position; if his Department knew of this when Anglo Irish Bank made this recent appointment; and if he will make a statement on the matter. [22138/10]
View answerAs the Deputy is aware under the Relationship Framework the Board of the bank is responsible for the day-to-day operations of the Bank, including in this context the appointment of consultants. I am informed by the Bank that it did not appoint the company, referred to in the Deputy's question, to carry out a forensic examination into their accounts. However, in October 2009, the bank did appoint them to perform data validation procedures relating to the transfer of the first tranche of loan data to the National Asset Management Agency (NAMA). In essence, the Bank used the resources of the company to ensure that the loan data being submitted by the Bank was accurate and met the NAMA requirements. Furthermore, in February 2010, the Bank engaged the company to perform data validation procedures relating to the transfer of the second tranche of loan data to NAMA.
