Political focus in IBRC inquiry

The widening of a full inquiry into transactions at IBRC will include a partial examination of the political oversight of the bust bank as well as a review of its internal governance. Up to €4m will be set aside for the commission of investigation which will focus on deals and activities at the IBRC over a four-year period.

However, by last night there was still no judge chosen to lead it. It remains unclear if the inquiry will have the flexibility to produce an interim report before its end-of-year deadline.

The inquiry will examine decisions, transactions and activities entered into by the IBRC between January 21, 2009 and February 7, 2013.

Following fresh allegations, including claims that billionaire businessman Denis O’Brien was given preferential terms or special interest rates for his IBRC loans, the Coalition yesterday signed off on the inquiry, after weeks of demands from the Opposition benches.

A core part of the probe will be to investigate if any of IBRC’s transactions “gave rise to a significant loss”. Any “improper favourable treatment” given to any clients will also be probed.

Any unusual share trading over deals which might suggest inside information was improperly provided to anyone will also be examined. The inquiry will also look at whether Finance Minister Michael Noonan, or his predecessor Brian Lenihan, were kept informed of IBRC transactions and whether the minister or their officials took appropriate actions. Opposition concerns originally focused on the sale of Siteserv which was sold to a Denis O’Brien-owned company in March 2012, at a loss of €119m to the State.

Questions have been raised about its trading in shares before its sale and why shareholders got pay-offs of €5m. The terms for the inquiry announced yesterday did not specifically mention or focus on any IBRC deal, including Siteserv, nor did they prioritise investigating one over any other.

While the inquiry commits to investigate deals involving losses of a minimum of €10m or more, a government spokesman pointed to the probe’s terms which state it can inquire into matters of “potential public concern”.

This would allow it look at deals where smaller losses accumulated, it was pointed out. However, the inquiry will not look at deals where any preferential terms resulted in reduced interest payments of less than €4m.

When completed the inquiry will report back to the Taoiseach. His spokesman said it would be a decision for the judge whether there is any interim report before the December 31 deadline.