Any IBRC delay ‘will hurt State credibility’

Lack of a speedy interim report into the IBRC controversy will lead to a major credibility gap for the investigation into goings-on at the bank, opposition leaders have warned.

With the Cabinet set to agree final terms of reference for the probe today, Finance Department sources indicated that legal issues would not allow a break-out early conclusion looking at specific areas of the controversy over Siteserv.

A senior Government source said: “It could end up making the whole process longer as the judge would need to break off and do it, and it is also difficult to separate issues out.”

Following meetings between Finance Minister Michael Noonan and opposition TDs to discuss the terms of reference, it emerged the role of the Finance Department in major IBRC deals would be included, but a source said: “This will be looking at transactions, not supposed personality clashes between department officials and IBRC staff”, in a reference to former bank chairman Alan Dukes’ dealings with Coalition figures.

Independent TD Catherine Murphy, who first raised concerns about IBRC and the sale of a Siteserv to tycoon Denis O’Brien at a loss of €114m loss to the taxpayer, expressed hope that the Government would bring in a remit she would be able to back with after speaking to Mr Noonan.

However, Ms Murphy indicated she may raise more issues regarding IBRC under Dáil privilege when TDs debate the terms of reference if she is not happy with what the Cabinet approves.

Fianna Fáil leader Micheál Martin said he feared Mr Noonan was going to allow an interim report and that the findings of the inquiry would not emerge until after the general election, which has to be held in the next 10 months.

Opposition leaders have expressions serious doubts about whether the probe will report by its end of December deadline.

Mr Martin said the role of the bank’s wealth management division would be included after he received concerns about its activities.

Ms Murphy expressed approval that the resources for the inquiry would be adequate and it would be able to investigate any IBRC deals of interest, not just those that resulted in a €10m loss or more for the taxpayer.

Sinn Féin deputy leader Mary-LouMcDonald said credibility was crucial for the probe.

“No investigation will be credible if it excludes the Minister for Finance or the department,” she said.

“No investigation will be credible if it stops in 2013 and doesn’t consider transactions by the special liquidator there after.

“No investigation will be credible if it doesn’t explicitly include the method by which extension to loans and roll over loans were carried out.”

Taoiseach Enda Kenny moved to address opposition concerns by insisting Government will not instruct the judge in charge of the commission, expected to be Iarfhlaith O’Neill, how to proceed.

Meanwhile, the long-awaited Fennelly Commission report on the departure of former Garda Commissioner Martin Callinan is set to be distributed to parties concerned this week.