Dáil Éireann Debate, Wednesday - 29 April 2015
55. Deputy Michael McGrath asked the Minister for Finance if officials in his Department recommended in 2012 that an independent review be carried out into a certain transaction involving the Irish Bank Resolution Corporation (details supplied); the action he took on foot of any such advice; and if he will make a statement on the matter. [16912/15]
View answerAs contained in material previously released under Freedom of Information and available on the Department of Finance website ahead of a meeting with the Chairman and CEO of IBRC on 25 July 2012, which I also attended, there was a recommendation in a note prepared for myself and the senior officials attending the meeting that the Chairman of IBRC be asked to commission an independent review in relation to the sale of the company referred to in the question.
On 25 July 2012, I along with officials from my Department, met with IBRC's Chairman and CEO to discuss a number of concerns, which included concerns regarding this transaction which had emerged following engagement with IBRC management after the completion of the transaction.
During this meeting, I raised these concerns regarding the transaction with the Chairman. I want to be very clear. The Chairman provided me with strong assurances both regarding the specific aspects of the transaction with which we had concerns and that the overall transaction had been thoroughly assessed by the IBRC Board and that the Board of IBRC were satisfied that the transaction was managed in the best manner possible to achieve the best result for the State.
It should be noted that the IBRC Board had a fiduciary responsibility to the bank's stakeholders and so, in light of this legal responsibility, the Chairman and the Board would have considered and provided such assurances following serious and careful consideration.
It is also important to note that this transaction had completed at that stage and there was no legal possibility of reversing the transaction. In light of the strong assurances I received from the Chairman that this transaction had been properly considered by the IBRC Board, assurances which I accepted, an independent review into the transaction did not take place.
However, as is also evidenced in the information released under Freedom of Information, engagement continued between Department of Finance officials and senior management of IBRC to improve upon the working relationship with IBRC and to help protect against such concerns arising in the future, including the implementation of the revised relationship framework and the secondment of a senior Department of Finance official to IBRC as a senior executive to facilitate IBRC's ongoing deleveraging programme. The Department of Finance official remained in secondment with IBRC until the date of the IBRC liquidation in Feburary 2013.
