Thursday 21 November 2019

Judge Iarfhlaith O’Neill appointed to assist review of deals done by IBRC

Donal O’Donovan

Judge Iarfhlaith O’Neill has been appointed by the Minister for Finance to assist in the review into deals done at State owned lender Irish Bank Resolution Corporation (IBRC).

Terms of reference for a review into all deals done by the bank between its nationalisation in January 2009 and its liquidation in February 2013 were published today. The review will be conducted by insolvency experts Kieran Wallace and Eamonn Richardson of KPMG, who are already in situ as the special liquidators of the former bank.

“In light of the recent concerns raised before the Houses of the Oireachtas and elsewhere regarding the Siteserv transaction and the public discourse this has caused surrounding the handling of other transactions undertaken by IBRC, I have today directed the special liquidators of IBRC to review all transactions which occurred between 21 January 2009 the date of the nationalisation of IBRC, and February 7th 2013, the date of the appointment of the Special Liquidators to IBRC.

The review will cover transactions that resulted in a capital loss to IBRC of at least €10m during that period; or are specifically identified by the Special Liquidator as likely to give rise to potential public concern, in respect of the ultimate returns to the taxpayer,” Michael Noonan said,

Reacting the claims of potential perceived conflicts of interests in cases where KPMG had a role in any of the deals  under review retired High Court Judge Iarfhlaith O’Neill has also been appointed  to monitor any “actual or perceived” conflicts of interests during the process, the minister said.

The purpose of the review is to determine whether there is evidence of material deficiencies in IBRC’s performance in respect of such transactions and related activities and management decisions, and whether it can be concluded that the transactions were not commercially sound, Michael Noonan said.

A report is due to published  before 31st August 2015 and will then be available to Oireachtas committees to read.

Minister Noonan said the review has been called as a result of recent speculation and is not being undertaken as the result of any evidence of deficiencies or that transactions were not commercially sound.

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