The Department has received a number of communications from parties with an interest in providing advice to the State or State owned companies since the appointment of the company referred to in the Question by IBRC became public information. This information related to the appointment of the particular company was provided on an informal basis and is deemed to be confidential in nature. Had any formal communication been received in the Department it would have been referred to the Board of the bank, whose responsibility covers such matters. In the wider context the Department receives communications from a wide range of parties, including potential investors, on an on-going basis. IBRC has also confirmed that the Bank has been contacted by market investors with respect to the engagement of the Company (details supplied). In each case the Bank has clarified that the engagement was limited to the ‘advisory arm' of the Company referred to in the question who assisted the Bank with certain strategic matters. The bank has also confirmed that the bank operates a procurement policy which has been set by the Board. An integral aspect of procurement is a governance process to monitor adherence to policy. The Bank's procurement policy is designed to ensure that goods and services are procured in the most cost-effective manner, while ensuring that the process is completed in an open, objective and transparent way.
There have been and will continue to be specific instances in which the Bank will not be able to tender publicly for a particular good or service e.g. urgency, sensitivity of a particular matter, etc. In such instances, the procurement policy allows for the CEO to give an advance waiver of this policy. A waiver is only granted by the CEO where a genuine need exists and can be justified. I am informed by the bank that the circumstances in relation to the appointment of the company referred to in the Question met the conditions to justify a waiver of the procurement policy.
Procurement by IBRC, whether by public tender or exception, at all times seeks to best give effect to the core principles of accountability, value for money, non-discrimination, fairness, transparency and integrity in the procurement of any good or service for the Bank. The Bank's Audit Committee receives a report in respect of professional fees paid at each Audit Committee meeting.
Further details of any exception to the Bank's procurement policy are by their nature therefore commercially sensitive to the organisation.