‘No conflict’ over liquidation auditors

At least two of the auditors who signed off on the parking of billions of euro from Irish Life & Permanent into Anglo Irish Bank have found themselves working on the liquidation of IBRC.

In answers to parliamentary questions submitted by Sinn Féin’s Pearse Doherty, it has emerged that at least two individuals working with KPMG, who failed to spot the €8bn of circular lending between Anglo Irish and Irish Life & Permanent, are now overseeing the liquidation of IBRC.

At the same time it has emerged that while Ernst & Young is being pursued through the courts for its role in the audit of the Anglo Irish accounts, KPMG will not be sued for its role in auditing Irish Nationwide Building Society.

Irish Nationwide was merged with Anglo to form IBRC.

In response to the parliamentary questions, Finance Minister Michael Noonan said that “on foot of legal advice, (the board of Irish Nationwide) made a decision not to institute proceedings against KPMG”.

Mr Doherty said the role of auditors had been completely overlooked in the review of the failings of the State to regulate the banks.

He asked Mr Noonan to confirm if any partners, senior managers, or staff members who audited Irish Nationwide and Irish Life & Permanent are responsible for any of the work being undertaken by KPMG in the liquidation of IBRC.

Mr Noonan confirmed that at least two senior managers had been involved, but, following a thorough investigation, they had been cleared to work on the IBRC liquidation.

&Mr Noonan said that “there is no conflict of interest in relation to the work currently being undertaken by these individuals in the special liquidation of IBRC and their previous roles in relation to the audit of”& Irish Life & Permanent.

Mr Doherty claimed: “The same people are moving in the same circles and no one is being held to account.”