IBRC Operations

Dáil Éireann Debate, Tuesday - 16 December 2014

Tuesday, 16 December 2014

Questions (220)

Catherine Murphy

Question:

220. Deputy Catherine Murphy asked the Minister for Finance if he is satisfied that the Irish Bank Resolution Corporation, in its disposal of a company (details supplied) in March 2012, acted in the best financial interest of the State; if his attention has been drawn to the company being sold to a much lower bid; if so, if he sought a satisfactory answer as to the reason; the reason the company was not put into examinership or receivership; if he has questioned the reason the same legal representatives acted for both the company in question and the purchaser; and if he will make a statement on the matter. [48159/14]

Written answers

Minister for Finance

Notwithstanding the State's ownership of the bank at the time, Irish Bank Resolution Corporation operated at an arm's length capacity from the State in relation to commercial issues. It was a matter for the board and management to determine and implement such policy in their organisation. Therefore, commercial decisions in relation to IBRC were solely a decision for the bank.  I am aware that KPMG Corporate Finance and Davy Corporate Finance ran a joint sales process to sell Siteserv which was in severe financial difficulties and was unable to service or pay back its loans to IBRC. The sale process was initiated by Siteserv and overseen by a subcommittee of the Siteserv Board. The sale process involved two stages and IBRC was briefed after each stage. The Board of Siteserv, as advised by KPMG Corporate Finance and Davy Corporate Finance, recommended the successful bid as representing the best return for IBRC. I am advised that the Board of the bank at that time were satisfied that this was the case.