IBRC INQUIRY: Government accused of spectacular climbdown

Opposition party TDs have claimed the Government has performed a “spectacular climbdown” after finally agreeing to set up an independent commission of investigation into IBRC deals it repeatedly refused to establish.

Independent TD Catherine Murphy and Fianna Fáil leader Micheál Martin made the claim after Finance Minister Michael Noonan performed the U-turn in light of what he said is “heightened public concern” over the issue.

In an unexpected move at yesterday’s Cabinet meeting, Mr Noonan said the recent furore over Ms Murphy’s Dáil claims against Denis O’Brien and a related High Court injunction the businessman took against RTÉ preventing it from reporting details of his loans with IBRC means the current KPMG review into the issues is now “insufficient”.

Mr Noonan said he was bowing to months of opposition pressure to set up an independent commission of investigation into the affair as whatever findings the KPMG review now makes, it is unlikely to be trusted by the public.

Ms Murphy said the development was a “spectacular climbdown” by the Government as only last week she was told by the Coalition’s chief whip, Paul Kehoe, that she would not be allowed to put a motion to the Dáil seeking the investigation.

Mr Martin said the development was a “farce” as his party’s calls for an investigation — including a May 5-6 Dáil motion — had been voted down by Government and were “ridiculed” as unnecessary by Mr Noonan.

Party colleague and finance spokesperson, Michael McGrath, said while he welcomes the acceptance that an independent inquiry is needed, he said “this should have happened months ago”.

Tánaiste and Labour leader Joan Burton had earlier flagged the move when she suggested the now scrapped KPMG review was akin to a “scoping exercise”.

Meanwhile, Mr Noonan last night confirmed that his department has IBRC board minutes noting the March 2012 cut-price Siteserv sale to Denis O’Brien, despite previously saying it did not have the records.

However, he said the issue was a “mistake” as the files — which do not reveal any new infor-mation — were “misplaced”, and it was a “coincidence” that it happened on the day of the announcement of the investigation.