IBRC Operations

Dáil Éireann Debate, Tuesday - 28 April 2015

Tuesday, 28 April 2015

Questions (123, 133)

Catherine Murphy

Question:

123. Deputy Catherine Murphy asked the Minister for Finance if he will provide a list of the number of large transactions undertaken by Irish Bank Resolution Corporation which his Department had concerns over, as described in documents released to this Deputy under the Freedom of Information Act, concerning the sale of a company (details supplied) by the corporation, and which he was also described as being very concerned about; if he will specifically and methodically indicate the amounts concerned in each case, that is, the impact upon the capital holdings of the corporation, the cost to the State, the total write-downs on original value and so on; and if he will make a statement on the matter. [16655/15]

Michael McGrath

Question:

133. Deputy Michael McGrath asked the Minister for Finance if he will provide details of each transaction engaged in by the Irish Bank Resolution Corporation since the nationalisation of the former Anglo Irish Bank, and prior to the appointment of a special liquidator for the corporation, that his Department officials expressed some concern about; if he will provide this information in aggregate or summary form; the action that was taken by his Department in each case; and if he will make a statement on the matter. [16751/15]

Written answers

Minister for Finance

I propose to take Questions Nos. 123 and 133 together.

In terms of transactions involving IBRC in which my Department had concerns over, I would like to draw the Deputy's attention towards the Department of Finance website where documents released under a recent FOI have been published. On page 7 of the document titled '8. Briefing ahead of 25 July meeting', there is a table containing six matters over which the Department of Finance officials raised concerns. http://www.finance.gov.ie/news-centre/press-releases/ibrc-foi-documents.

In response to publicly raised concerns, as announced last Thursday, I am directing the Special Liquidators of IBRC to review and report on all transactions, activities and management decisions which occurred between the date of nationalisation and the date that IBRC entered into liquidation that resulted in a capital loss to IBRC of at least €10 million.  I have also directed the Special Liquidators to include in their review and report any transactions which would likely give rise to public concerns in respect of the ultimate returns to the taxpayer.

The review and report will evaluate whether there is any evidence of material deficiencies in the performance of their functions by those acting on behalf of IBRC, including the board, directors, management and agents of IBRC and whether it can be concluded that any of the transactions were not commercially sound.  The special liquidators will also be obliged to ensure that any conflicts of interest which may arise are properly managed.

Directing that a review be conducted by the Special Liquidators has the advantage of enabling work on the review to commence very quickly. The review will be completed by the 31st of August and I intend to make this report available to relevant committees of the Oireachtas, as requested.