Cantillon: Was share trading at Siteserv analysed?

It emerged in a Sunday Times report last week that trading in Siteserv shares spiked in the period before its sale. When asked about the report, Tánaiste Joan Burton (right) said: "I want to see all of the relevant information made available and published." Given the overwhelming public interest, it is a pity the various authorities don't appear to share the Tánaiste's view.

Independent TD Catherine Murphy asked Michael Noonan in a parliamentary question if he was aware "share acquisitions may have arisen as a result of privileged information relating to the sale . . . [and] that the Irish Stock Exchange has investigated . . ."

Noonan replied his department "does not have a role" in investigating allegations of insider trading. The Minister and the Central Bank both said it is a matter for the regulator of the market: the Irish Stock Exchange, which is owned by the biggest stockbroking firms.

When this newspaper asked the ISE whether it had ever investigated allegations of insider dealing at Siteserv, it said it “is bound by confidentiality under law and therefore prohibited from disclosing details of any investigation”. It added that if it as regulator finds “there is indication of possible insider dealing” it “may forward a file to the Office of the Director of Corporate Enforcement who is responsible for deciding whether there is a case to answer and for pursuing that case . . .”

When we asked the ODCE if it had ever looked into any such allegations , it said it is not its policy to comment. Davy, the country’s biggest stockbroker whose corporate finance arm advised Siteserv, was then asked by this newspaper whether it was ever contacted in relation to share dealing at Siteserv by the ODCE or the ISE. It replied it would be “inappropriate” to comment. Earlier in the week it said allegations in Dáil Éireann that senior executives in Davy acquired shares in Siteserv in the months leading up to the sale were untrue.

Given the controversy, and the fact shareholders got a €5 million payout while taxpayers swallowed a €105 million loss, there is a clear public interest argument for revealing whether the share trading was ever the subject of an investigation. Let alone the result, if there is one.