KPMG decision ‘cannot be put off forever’

A High Court judge has strongly criticised the continuing failure over months to make a decision whether accountancy firm KPMG should, in its capacity as former auditors to Irish Nationwide Building Society, be sued as a co-defendant in separate actions by State-owned IBRC against Michael Fingleton and other former directors of the society over €6bn losses.

Mr Justice Brian McGovern noted that the special liquidators of IBRC, Kieran Wallace and Eamonn Richardson, are partners in KPMG. He said that while it was not for him to advise anyone “as to what Chinese walls have to be created”, it was “a matter of concern” that there was no decision on the procedural matter of whether KPMG, a third party in one action, should be a defendant, he said.

“How long is it going to take to make a decision?” the judge asked in the Commercial Court, warning he would not permit the matter to “drift” much longer and a decision “cannot be put off for ever”.