Written Answers Nos. 57-63
57. Deputy Micheál Martin asked the Minister for Finance if he or his officials are aware of a report on the Irish Bank Resolution Corporation by a solicitors firm (details supplied); and if he will make a statement on the matter. [22542/15]
View answerOfficials in my Department have advised me that they are aware that the firm of solicitors mentioned in the question was engaged by IBRC to report on the management of conflicting obligations arising from the wind-down of IBRC s wealth-management business. This report was prepared from the perspective of IBRC.
The terms of reference of the recently announced Commission of Investigation explicitly provide for the investigation into activities involving IBRC s wealth management unit where there is public concern.
58. Deputy Micheál Martin asked the Minister for Finance if he or his Department officials raised any concerns regarding a conflict of interest and difficulties between the wealth management unit in the Irish Bank Resolution Corporation and the corporation itself; and if he will make a statement on the matter. [22543/15]
View answer59. Deputy Micheál Martin asked the Minister for Finance the reason the wealth management unit in the Irish Bank Resolution Corporation was not sold, despite offers being received; and if he will make a statement on the matter. [22544/15]
View answerI propose to take Questions Nos. 58 and 59 together.
I am informed that IBRC made officials in my Department aware that they had engaged a firm of solicitors to report on the management of conflicting obligations arising from the wind-down of IBRC s wealth-management business. This report was prepared from the perspective of IBRC.
The terms of reference of the recently announced Commission of Investigation explicitly provide for the investigation into activities involving IBRC s wealth management unit that give rise to public concern.
IBRC conducted a 9 month sale process for its wealth management business in 2011-2012; this sale process was eventually abandoned. The eventual disposal of IBRCAC, a key part of the wealth management business, occurred during the liquidation of IBRC in 2014.
60. Deputy Bernard J. Durkan asked the Minister for Finance if the case of persons (details supplied) in County Meath, who may have been mis-sold financial products in recent years, can be re-examined; and if he will make a statement on the matter. [22557/15]
View answerFirstly, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions and it would not be appropriate for me to comment on how he performs those duties or to intervene in an individual's complaint.
The Financial Services Ombudsman Bureau was established under the Central Bank and Financial Services Authority of Ireland Act 2004. This legislation provides the Financial Services Ombudsman with various powers in order to determine jurisdiction on a complaint. Included in this is a statutory timeframe.
Section 57BX (3)(b) provides: "A consumer is not entitled to make a complaint if the conduct complained of occurred more than 6 years before the complaint is made." Therefore, the legislation prohibits the Financial Services Ombudsman from examining any aspect of a complaint where the conduct being complained of occurred more than 6 years prior to the receipt of the complaint in his Office.
61. Deputy Colm Keaveney asked the Minister for Finance in view of an article that appeared in The Irish Times on 25 April 2015 which contained a quote (details supplied), and in view of the fact that this would appear to demonstrate a person's (details supplied) involvement in the discussion on Siteserv, if he will request an explanation from a person (details supplied) as to this disagreement, and make such an explanation available to Dáil Éireann; and if he will make a statement on the matter. [22571/15]
View answerWhile this was a matter for the board of IBRC at that time, the minutes of the meeting, which are available on the Department of Finance website show that the person referred to in the question was present during the discussion on Siteserv. There was no representative from the Department of Finance present at the 15 March 2012 board meeting of IBRC which approved the sale of Siteserv.
The sale of Siteserv will be one of the transactions which will fall within the scope of the recently announced Commission of Investigation.
62. Deputy Colm Keaveney asked the Minister for Finance if he will provide an explanation as to the reason Siteserv received a write-off of loan facilities from the Irish Bank Resolution Corporation of €119 million following its sale, which was in excess of the then current impairment provision by circa €10 million; if he will provide a list of all loans and companies that secured a write-off of loan facilities from the corporation in excess of impairment provision, including the identity of the company involved, the amount of the write-off for each, and the corresponding excess over the impairment provision for each; and if he will make a statement on the matter. [22572/15]
View answerThe sale of Siteserv was a commercial decision for the board of IBRC at the time.
Details of the approval of the Board of the sale and the financial impact to IBRC of the sale of Siteserv, including details of the proceeds, process and the €119 write-off, were included in the minutes of the meeting of the board of IBRC on 15 March 2012. The Siteserv transaction was announced to the Stock Exchange on 16 March 2012 and the Department received the minutes of the meeting as part of the monthly board pack later that month.
In its publicly reported half year results for the six months ended 31 October 2011, Siteserv reflected "Interest bearing loans and borrowings" of €156 million. The Stock Exchange announcement of the deal cited a cash consideration of €45.42 million at completion. It is understandable that based on these publicly disclosed figures, various commentators speculated that the resulting write-down suffered by IBRC amounted to c.€110m, being the difference between €156 and €45 million.
The minutes reflect that the board approved the proposal to proceed with the Sale of Siteserv for €48m with net proceeds for the bank of €44.3m arising from the sale of Siteserv in repayment of its outstanding borrowings. The proposal approved by the board included a write-off of the balance of the IBRC lending facilities of €119 million following the sale.
The concerns expressed by Department officials and raised by my officials and I in meetings with the management and board of IBRC in 2012, as contained in records previously released under FOI, focused on the execution and management of the sales process and whether the decisions taken maximised the potential proceeds from the sale. As can be seen from the records released under FOI, the focus of the meetings was on the critical decisions taken by the bank and possible alternatives during the sales process and the proceeds would also have been discussed. In my discussions with IBRC in 2012 I was aware that a very significant write-down resulted from the sale. In addition, both the publicly available information and the details contained in the board minute would have been known to Department of Finance officials at that time.
The assurances I sought from the Chairman of IBRC was to ensure the maximum return was achieved for the taxpayer from the sale process.
Due to the information requested being commercially sensitive, the Special Liquidators have advised that they are not in a position to provide a list of all loans and companies that secured a write off of loan facilities in excess of the impairment provision.
63. Deputy Michael McGrath asked the Minister for Finance the date when his Department discovered that it actually did hold the minutes of the Irish Bank Resolution Corporation board meeting of 15 March 2012; the way this discovery was made; where the minutes were found in his Department; the other board minutes of the Corporation that were held by his Department relating to the years 2009 to 2012; and if he will make a statement on the matter. [22573/15]
View answerI was informed by my officials on 28 May 2015 that they had found a schedule of IBRC board packs received from August 2011 to September 2012 which had been created as part of a discontinued Freedom of Information request. This record confirmed that my Department had received the minutes of the meeting of the board of 15 March 2012 as part of the IBRC board pack received in advance of the IBRC board meeting on 28 March 2012.
Following this, my officials carried out a comprehensive search of the Department of Finance and the file registry section, this search took place between 28 May 2015 and 3 June 2015, however my officials were unable to locate these misplaced board packs. Following the completion of the search, the Special Liquidators were contacted and copies of the misplaced board packs were received by my Department on 3 June 2015.
It is important to note that the discovery of these records does not change the import of my previous statements in that it remains my officials' belief that the Department first became aware of the Siteserv transaction after it was approved by the board of IBRC on 15 March 2012.
I am advised that the reference to the Siteserv transaction is in the minutes of the meeting of the board on 15 March 2012 and was contained in the pack received in advance of the monthly board meeting on 28 March 2012. The Siteserv transaction was approved by the board of IBRC on 15 March 2012 and announced to the stock exchange on 16 March 2012. The Department received the minutes of the meeting as part of the monthly board pack later that month.
A copy of the minutes of the 15 March board meeting is available on the Department of Finance website at
http://www.finance.gov.ie/sites/default/files/Appx%201%20-%20References%20to%20the%20Siteserv%20transaction%20in%20March%2028th%20Board%20Documents.pdf.
