Enda Kenny ‘legally unable’ to answer IBRC question for second day in a row

Enda Kenny has for a second day in a row refused to tell the Dáil if he or a member of government was informed of legal obstacles before last week which have ground the IBRC inquiry to a halt.

Claims that a “Chinese wall syndrome” was operating at the heart of government were rebuffed by the Taoiseach though, as he said he would be breaking the law if he answered questions about the probe.

The inquiry into 37 sales of debts by IBRC amounting to hundreds of millions of euro lost to the taxpayer in write-offs has stalled as it faces a legal brick wall.

Commission of investigation chairman Judge Brian Cregan has told the Government that because of issues raised about confidentiality and legal privilege, he cannot use some 200,000 documents for evidence.

His interim report, expected next week, will help the Coalition to resolve the legal impasse, which could now see the IBRC inquiry not completed for at least several years.

While Mr Kenny’s spokesman says he was not aware of any problems with the IBRC inquiry until last week, documents show the Department of Finance highlighted the legal issues as far back as October with Judge Cregan. The department was asked to give evidence about IBRC deals done.

Fianna Fáil leader Micheál Martin asked Mr Kenny whether the department was aware of the legal obstacles before last week and if finance officials had spoken to him.

“When did the minister for finance find out about this? Is it the position of the Taoiseach that Department of Finance officials knew about this matter since August and September?”

Mr Kenny responded he was hiding nothing, adding: “I am not entitled, under the law on the establishment of commissions of investigations, to answer the deputy’s questions. I do not know what contact existed, and with whom in the Department of Finance the commission of investigation was involved, nor am I entitled to know.”

The inquiry was sparked after questions were raised about IBRC’s sale of Siteserv to businessman Denis O’Brien, which resulted in a loss of €119m to the taxpayer.

The Government had said it expected the inquiry would report back before next year’s general election.

But Mr Martin said: “It is incredible that the Taoiseach of the day would claim there is a Chinese wall syndrome at the heart of Government in regard to an investigation into the sale of a company which involved the write-off of €119m.”