Dáil Éireann Debate, Tuesday - 8 July 2014
183. Deputy Stephen S. Donnelly asked the Minister for Finance further to the recent engagement by Permanent TSB of Morgan Stanley to assist with the disposal of over €2 billion of par value loan portfolios, if he is aware of Morgan Stanley acting on behalf of any organisation considering a merger with PTSB; and if so, if he is concerned at any conflicts of interest; and if he will make a statement on the matter. [29469/14]
View answer184. Deputy Stephen S. Donnelly asked the Minister for Finance further to the recent engagement by Permanent TSB of Morgan Stanley to assist with the disposal of over €2 billion of par value loan portfolios, if he has any concerns about the performance of Morgan Stanley with the recent disposal of loan portfolios of National Australia Bank group and the British Co-op group. [29470/14]
View answer186. Deputy Stephen S. Donnelly asked the Minister for Finance further to the recent engagement by Permanent TSB of Morgan Stanley to assist with the disposal of over €2 billion of par value loan portfolios, his views on the suitability of that company in view of its involvement in various transactions involving shares and contracts for difference controlled by a person (details supplied) at the former Anglo Irish Bank in 2008; and if he will make a statement on the matter. [29472/14]
View answerI propose to take Questions Nos. 183, 184 and 186 together.
As the Deputy will be aware there is a Relationship Framework in place with Permanent TSB ("PTSB"). Under the Relationship Framework PTSB is recognised as a separate economic unit with independent powers of decision. The Board and management team retains responsibility and authority for determining the bank's strategy and commercial policies and conducting its day-to-day operations. In accordance with Section 21 of the Relationship Framework I have been notified by PTSB that Morgan Stanley have been engaged to act on their behalf solely to facilitate the sale of the specified loan books only and not to advise on any other aspects of their strategy.
I have also been informed by PTSB that Morgan Stanley were chosen after a thorough competitive tender process taking into account their experience in similar transactions and their track record on previous transactions for PTSB. As the Deputy would expect I am acutely conscious of the potential for conflicts of interest when the State engages advisors to assist us in relation to our banking investments. Indeed the most recent invitation to tender relating to the appointment of financial consultants to the Department of Finance (and the accompanying draft Framework Agreement) contains extensive provisions relating to the declaration and management of conflicts of interests with which tenderers must comply. A copy of the invitation to tender may be accessed through the etenders website.
