NTMA head makes fraud accusation

The head of the National Treasury Management Agency John Corrigan has said he believes financial services giant State Street engaged in fraudulent behaviour in "siphoning off" €3m in commission it should not have.

State Street was employed by the NTMA it to assist in the disposal of €4.7bn worth of assets.

Mr Corrigan, speaking during an appearance at the Oireachtas Public Accounts Committee today, said that State Street would argue that what happened was not fraudulent.

The matter has been reported to the Garda Siochana and the FSA.

Mr Corrigan said that while the €3m had been returned to the NTMA, the money had been accepted "without prejudice".

Meanwhile, Mr Corrigan said there had been considerable progress in re-engaging with the markets.

He said the NTMA was returning to the debt markets on a phased basis this year, to source money to help run the country.

He added Fitch's recent upgrade of Ireland's outlook from negative to stable was the first positive move by an agency since the crisis began and said there was an increasing demand in the markets for Irish debt at lower bond yield rates.