Cabinet to consider legislation over inquiry into IBRC

The Government is expected to rush emergency legislation through the Dáil this week to overcome a legal obstacle that has halted the Commission of Investigation's work into IBRC, formerly Anglo Irish Bank.

Attorney General Máire Whelan is expected to outline to tomorrow's Cabinet meeting what legal options are available to address significant issues raised by commission chairman, Mr Justice Brian Cregan, about insufficient powers to determine how the commission can deal with sensitive financial documents.

The commission is investigating disposals by IBRC, involving writedowns of €10 million or more. They include the sale of Siteserv to a company controlled by businessman Denis O'Brien, a disposal which involved a writedown of €119 million.

Yesterday, Siteserv, the company most associated with the controversy over “writedowns” by IBRC, also disclosed it has yet to be contacted by the commission, although its formal deadline for reporting is the end of December – just seven weeks away.

In a short statement to The Irish Times last night, Siteserv said that four months after it was established in July, the commission "has made no contact whatsoever with Siteserv or its shareholders.

“From the outset, the company had expressed its willingness to cooperate fully with the Commission”.

Legal privilege

The disclosure, together with the impasse over legal privilege, will throw fresh doubt on the commission being in a position to complete its report by the end of December, or even before the general election in February or March.

However, it is understood that Judge Cregan will provide an interim report on progress to date, in next few weeks.

Taoiseach Enda Kenny confirmed yesterday he had received a letter on Friday from Judge Cregan.

He informed the Government that doubts over his powers in determining on issues of confidentiality and privilege had meant he “was not in a position to proceed” with his investigation of any relevant transaction where “write-offs” occurred.

The issue, it is believed, relates to the 2004 Act setting up commissions of investigation. It is understood the commission did not have the powers to make a determination as to whether or nor confidential documents in the possession of IBRC liquidators KPMG should be distributed to parties other than the commission. The liquidators have claimed legal and banking privilege over the documents.

The statement also refers to a request for an extension of time, which suggests that it will not be in a position to report by the deadline of the end of December 2015, set out by its terms of reference.

Interest rates

The commission is also investigating a claim made in the Dáil by Social Democrats co-leader

Catherine Murphy

that preferential interest rates were given to some large borrowers. It was due to publish its final report by the end of December.

Ms Murphy and Fianna Fáil finance spokesman Michael McGrath both said that the report would not be published until well after the general election. Ms Murphy also warned of the possibility of a collapse of the investigation.

“There is a real possibility of it collapsing,” she said, adding: “That will cause absolute outrage. The people will not be taken for fools on this. It is absolutely essential that this information is known.”

Both Mr Kenny and Minister for Transport Paschal Donohoe raised the possibility of emergency legislation being rushed through the Dáil this week.