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Calls for inquiry into IBRC sale of assets

Opposition TDs are calling for an independent inquiry into the way the former Anglo Irish Bank sold...
TodayFM
TodayFM

7:41 PM - 21 Apr 2015



Calls for inquiry into IBRC sa...

News

Calls for inquiry into IBRC sale of assets

TodayFM
TodayFM

7:41 PM - 21 Apr 2015



Opposition TDs are calling for an independent inquiry into the way the former Anglo Irish Bank sold some of its largest assets.

The calls come after new documents reveal tensions between the government and IBRC over the sale of SiteServ.

The company was sold to Denis O'Brien's Millington firm for about €45 million, meaning a loss of around €105 million to the state-owned bank, given that the firm owed roughly €150 million.

However the company then paid out large dividends to its shareholders and turned significant profits in the years afterwards - particularly after one of its subsidiaries, GMC Sierra, won one of the state contracts for the installation of water meters.

Documents obtained by independent TD Catherine Murphy under the Freedom of Information Act reveal that in 2012, the Department of Finance had raised serious concerns with IBRC about the sale of SiteServ and other major assets.

That account appears to conflict with Michael Noonan's answers to subsequent written Dáil questions where he said he was satisfied with IBRC's handling of the sale.

IBRC introduced a new framework to govern its handling of major sales in the days after the Siteserv deal had been concluded - a framework which likely would have required Noonan to be informed of the deal given the losses that resulted.

However Deputy Murphy claims this new framework had already been completed at the time the Siteserv deal was finished, and has questioned why it was not brought into effect sooner so that the Department of Finance could have its say on the deal.

The Taoiseach today told the Dáil he had not been briefed on the issue - but Fianna Fáil's Micheal Martin joined Catherine Murphy in seeking a full inquiry.

Deputy Murphy says the newly-highlighted tensions between the Government and IBRC may point to another motive for the unexpected liquidation of the former Anglo in early 2013.



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