Probe into banking inquiry after whistleblower claims

By Juno McEnroe and Fiachra Ó Cionnaith

Oireachtas authorities are set to open an investigation into the cross-party banking inquiry after an internal whistleblower claimed some witnesses have received “preferential treatment” — including briefings over dinners days before public grillings.

The allegations of serious irregularities involving a small number of back-room inquiry members are understood to relate to previous evidence from the Central Bank and Department of Finance earlier this year.

The claims were initially made by an internal inquiry whistleblower in a one and a half page email in April, but have since been drawn up into a report over the affair.

They relate to alleged “preferential treatment” of some witnesses, leaking of evidence and allowing the Central Bank to heavily limit what it could be asked.

In addition, it is alleged that a small number of back-room inquiry team members briefed some witnesses over dinner days before public grillings, and that at a “critical” point in its evidence preparations the Central Bank was allowed to hold a lengthy meeting with a lead investigator in the case.

The whistleblower allegations — which were known by at least three or four of the 11 TDs and senators on the public face of the investigation since early June — were the subject of a series of lengthy private meetings of the inquiry yesterday.

As a result, the delays played havoc with the group’s witness schedule at a crucial point in its hearing, with former secretary general at the Department of the Taoiseach Dermot McCarthy only beginning his evidence after 6pm despite the meeting being due to begin at 2.30pm and only finishing at 9.30pm last night.

While Fianna Fáil senator and inquiry member Marc Mac Sharry said an independent inquiry is needed without divulging details, the remaining members remained tight-lipped.

However, in a statement a spokesperson confirmed a process of disclosure has begun under the newly enacted whistleblower legislation — the first time this has been used in Leinster House.

A spokesperson said the inquiry has been “legally advised” that the Houses of the Oireachtas service was the appropriate authority to address the allegations.

He said this inquiry into the inquiry will be led by the acting clerk of the Dáil, who has already started examining the claims.

The Department of Finance said it had no comment to make when asked about the issue last night.

However, a Central Bank spokesperson defended the group’s co-operation and communication with the banking inquiry, saying: “The Central Bank has provided all necessary and relevant documentation that has been requested of it to the inquiry and has at all times co-operated fully with the requirements of the inquiry.

“In total, the Central Bank provided in excess of 7,000 documents to the inquiry, redactions to any documentation were only made where the Central Bank was legally required to do so.”

It is understood that the whistle-blower is one of the investigators working with the banking inquiry, which number into the hundreds due to the extensive fact-checking and research involved.