Q&A on the SiteServdeal

What is SiteServ and why is it in the news?

A construction services company that, among other things, has a subsidiary that forms part of GMC Sierra. GMC Sierra installs water meters for Irish Water.

In March 2012 Millington, an investment vehicle based in the Isle of Man, bought SiteServ for €45.4m from the Irish Bank Resolution Corporation formed from the merger of Anglo Irish Bank and the Irish Nationwide Building Society.

Millington is owned by Denis O’Brien, and as part of the deal IBRC wrote off loans to the value of €100m that were owed by SiteServ.In addition, SiteServ’s shareholders were paid €5m.

Independent TD Catherine Murphy has raised a number of questions about the sale of SiteServ. The Kildare North TD wants to know why IBRC — a state body — agreed to sell SiteServ for €45m when the company had debts of €150m.

She has also questioned why the company was sold to Millington when there have been reports that two other bidders were offering more than the €45m paid by Millington.

On Tuesday she told the Dáil she had received freedom of information documents from the Department of Finance which show “not only that the minister (for Finance Michael Noonan) was not satisfied the deal was the best one for the State but that he believed the deal resulted in a less than optimum return for the bank and, by extension, the State.”

Other documents released under FoI outline department officials’ concerns surrounding the sale, including the fact that Davy, which was advising SiteServ, was allowed run the sale.

What does the Government say?

While Mr Noonan had said that IBRC’s commercial activities were operated “at arms’ length” from the State, his department later conducted a review of the deal. Following this, Mr Noonan met the IBRC chairman and chief executive who gave their assurances the sale was the best result for the State.

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