Government called to focus IBRC inquiry on controversial Siteserv sale

Growing criticism over the botched inquiry into IBRC’s transactions has prompted calls for the Government to prioritise a probe into the controversial Siteserv sale.

The calls have come after the inquiry looking at taxpayer losses from sales of assets by IBRC, formerly Anglo Irish Bank, revealed serious obstacles that could prolong the probe for “several years” and lead to significant costs.

In his interim report to Taoiseach Enda Kenny, inquiry chairman judge Brian Cregan outlined a series of reasons why the probe into 38 IBRC deals has come to a sudden halt.

These include his inability to access and use documents from the stock exchange, the Central Bank, the Department of Finance, as well IBRC’s special liquidators.

Judge Cregan also said he has “actual or perceived conflicts of interests” relating to a small number of transactions. For this and other reasons, he has recommended that at least one other judge or member be added to the commission.

The judge wants the terms of the inquiry changed and priority be given to a limited numbers of transactions.

A smaller investigation of the top 12 of the 38 IBRC sales, amounting to €1.3bn in write-offs, could take up to two years, he has predicted.#

Social Democrats TD Catherine Murphy

The largest six transactions being examined involve write-offs of more than €100m while the next six involve losses greater than €50m, while it has also emerged a separate 156 transactions where losses of €10m or more were recorded are outside the scope of the inquiry’s timeframe.

As a result of the difficulties, Judge Cregan has recommended that individual sales could be isolated and examined by different commission members. However, he has concluded that under the current terms the inquiry could take “several years” and “result in substantial costs”.

The judge has recommended legislative changes to overcome claims of confidentiality by some parties.

In a statement last night, the Government said it would write to opposition party leaders “requesting their views” on how the investigation can continue.

But a senior civil servant has already raised doubts about it continuing.

Fianna Fáil’s Michael McGrath

The Department of Public Expenditure secretary general, Robert Watt, said “you can be pretty sure there are concerns” the total bill for the investigation will be far higher than planned after admitting “nobody envisaged” the inquiry lasting several years.

Speaking at the latest Dáil public accounts committee, which warned of an “open cheque book” attitude to the inquiry and called for a “cap” on costs, Mr Watt said he does not “like the sound” of a lengthy extension.

Social Democrats TD Catherine Murphy, whose questions led to the IBRC inquiry being launched, said that the investigation was “essentially unworkable”.

Fianna Fáil’s Michael McGrath said the report raised “extremely serious” questions over the advice given to Government when it set up the inquiry. The commission should prioritise an investigation on the Siteserv transaction, he added.