The announcement by the Government that it is to set up an investigation into the sale of the assets of the former Anglo Irish Bank, following days of controversy over the sale of Siteserv to a company owned by businessman Denis O'Brien, is welcome. The special liquidator of the bank, Kieran Wallace of accountancy firm KPMG, is to be asked to investigate all sales worth more than €10 million.
His report will then be made available to any Oireachtas committee for consideration. Separately, KPMG was one of the financial advisers in the Siteserv sale, although Wallace would have had no involvement in this deal.
A comprehensive investigation is urgently required into the disposal of assets that may have involved preferential deals, conflicts of interest and unorthodox payments, resulting in substantial losses to the exchequer. Full disclosure of the concerns expressed by senior Department of Finance officials is required, followed by a professional investigation of any suspected sweetheart deals. Talk of golden circles and inside tracks has a corrosive effect on public morale and on Ireland's international reputation.
The sale of Siteserv to an Isle of Man company owned by Denis O' Brien lies at the heart of this controversy. In view of the Moriarty tribunal findings, it would be unsurprising for the transaction to attract special attention. The sale was completed in early 2012. When Minister for Finance Michael Noonan was made aware of concerns by his officials over potential conflicts of interest by those involved – the circumstances surrounding the sale itself and the price achieved – he raised the matter with IBRC chairman Alan Dukes. Receiving assurances the IBRC board had reviewed the transaction and agreed it was in the best interests of the State, no further action was taken.
Legislation passed by the previous government was designed to prevent political interference in the sale of distressed assets by IBRC. But concerns over excessive secrecy, value for money and an absence of public accountability caused Mr Noonan to require advance notification regarding the disposal of assets exceeding €100million. Siteserv sold for half that sum, which raises questions about other, larger transactions that had caused his officials to believe the State was being short changed. IBRC was liquidated in 2013, its board stood down and accountancy firm KPMG appointed to dispose of the remaining assets.
There is a tendency to believe the worst of politicians and businessmen. But judgment in this case should be withheld until facts are known. There are, certainly, questions to answer regarding the disposal of Siteserv and the prices received for other assets. Those and other issues, such as IBRC’s commercial judgment can only be dealt with through an independent assessment, followed by sworn Oireachtas hearings.