Monday 19 February 2018

IBRC liquidators seek outside view on KPMG legal case

Donal O'Donovan

Donal O'Donovan

The Special Liquidators of IBRC have hired a leading law firm to look again at advice that they should not sue their own employer – KPMG – for its former role as auditor of part of the bank now under their control.

The decision by the bank not to sue was taken prior to the appointment of the Special Liquidators.

The decision to hire law firm Eugene F Collins comes after "questions were raised" about whether an action ought to have been pursued against KPMG in relation to its former role as auditor to the Irish Nationwide Building Society (INBS).

INBS and the former Anglo Irish Bank were merged to form what is now IBRC.

Directors

Last year, IBRC was placed into Special Liquidation under the control of two partners at KPMG – Eamonn Richardson and Keiran Wallace.

In February, one of a number of former INBS directors being sued, questioned why he and three fellow board members were subject to a legal action but not the accountants who audited the bank at the time.

The special liquidators have now hired Dublin law firm, Eugene F Collins Solicitors to independently review legal advice received by IBRC following a decision that KPMG should not be part of legal actions against some former directors of INBS.

"The decision to initiate proceedings against certain former directors of INBS was taken by the former board of the Society on foot of advice provided to them by their legal advisers, McCann FitzGerald.

This advice, received prior to liquidation, was that KMPG should not be joined to the proceedings.

However, questions have been raised about the "joinder or otherwise of KPMG to these proceedings", a spokesperson for the Joint Special Liquidators said.

Irish Independent

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