Government accused of creating a 'shambles' over IBRC inquiry
Commission of investigation chairman Judge Brian Cregan has revealed how obstacles to accessing and using documents across the board from the stock exchange to the Department of Finance are inhibiting his work.
In a surprisingly forthright report on why the IBRC inquiry has stalled, Judge Cregan said it could now take several years to complete and he would need at least one if not more judges to finish it.
The interim report indicates clearly how the judge does not have the legal firepower to access and use documents held by the Central Bank, the Department of Finance, IBRC’s special liquidators and the Stock Exchange among others.
This is due to legal constraints, including secrecy acts as well as claims of confidentiality and privilege.
In his 69-page report, released last night by Taoiseach Enda Kenny, the judge said concerns raised about whether special interest rates were applied to different loans bought from IBRC were difficult to investigate as there were no standard rates.
The inquiry was originally prompted after concerns were raised by Independent TD Catherine Murphy, who spent months asking questions of Finance Minister Michael Noonan about the sale of company Siteserv.
The construction support firm had been sold to businessman Denis O’Brien by IBRC at a loss of €119m to taxpayers.
Judge Cregan said there were difficulties for the inquiry now communicating with Siteserv in the investigation as the firm was no longer on a register of companies.
The judge outlined the volume of work and estimated time needed. He suggested that an examination of the top 12 of the 38 transactions identified could take up to two years.
“The combined total write-offs of these transactions is €1.3bn,” he wrote.
The judge has recommended that the terms of the inquiry and its legislation need to be changed.
But even if the Government put another judge or member onto the inquiry, the length and costs for the commission could still be significant, he told Mr Kenny in his report.
The judge has recommended breaking the investigation of the loan sales up into modules. This would allow the inquiry to prioritise its investigation into the sale of Siteserv, easily the most contentious transaction that has caused most public concern to date.
The Government have said that they, including Attorney General Maire Whelan who originally approved the inquiry’s terms, will consider what options to take in order to overcome obstacles facing the inquiry.
The Coalition insist they are “determined” that it goes ahead, despite the fact it is highly unlikely to report back before the election.
Fianna Fail finance spokesman Michael McGrath last night accused the Coalition of making a “shambles” out of the commission.
“The Government cannot be allowed to run down the clock and push this issue out until after the general election.”
