Politics

Noonan to address ‘conflict of interest’ in Siteserv inquiry terms

Taoiseach Enda Kenny says Siteserv share register should be published ‘forthwith’

Minister for Finance Michael Noonan Fine Gael said he would seek to address the possibility of conflicts of interest by firms including Siteserv which are involved in around 30 transactions (including the sale of Siteserv) which are to be reviewed. Photograph: The Irish Times
Minister for Finance Michael Noonan Fine Gael said he would seek to address the possibility of conflicts of interest by firms including Siteserv which are involved in around 30 transactions (including the sale of Siteserv) which are to be reviewed. Photograph: The Irish Times
Kathryn Hayes
Fiach Kelly
Mon Apr 27 2015 - 13:34

Accountancy firm KPMG will have to be at "arms length" from the inquiry into the controversial Siteserv sale should any conflict of interest arise in the review process, the Minister for Finance has said.

Speaking in Limerick on Monday Michael Noonan said provisions dealing with any possible conflicts of interest will be included in the terms of reference into the review of the sale of the utility.

The Government has sought to quell the Siteserv controversy by asking IBRC's special liquidators, Kieran Wallace and Eamonn Richardson, to examine the 30 or so sales by IBRC valued over €10 million. These terms of this review will be announced on Monday evening.

The sale of Siteserv for €45 million is controversial because the State incurred a loss of more than €100 million and Siteserv’s shareholders were paid €5 million as part of the deal.

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The deal also brought to the fore tensions between the Department of Finance and the board of IBRC, the State-owned entity created to deal with the assets of the former Anglo Irish Bank and Irish Nationwide Building Society.

On Monday Mr Noonan said the terms of reference would include bringing in somebody independent working with the liquidator, if required so that “nobody is reviewing their own case”.

“So I said when we indicated the terms of reference, that there will be a provision in the terms of reference when we announce them probably later this evening, to deal with any possible conflicts of interest.

“So there will be a system put in place so that if there is any conflict of interest KPMG will have to be at arm’s length, and other professionals will be brought in to deal with that piece of the review.”

When asked if he was not concerned there was already a conflict of interest given KPMG’s involvement the Siteserv deal, Mr Noonan replied: “I’m not. If you look at Siteserv, KPMG had an involvement.

Arthur Cox, one of the biggest legal firms in Dublin were the legal advisors, to both sides with different groups within the company advising different sides. Davys were advisors as well. PWC were advisors to another group.”

“I want a review of over 30 transactions and without checking it at all I know that every serious company in Dublin, whether its accountancy or legal will run into conflicts of interest on this.

“So what I need is somebody independent in there working with the liquidator to adjudicate on where there’s a conflict of interest so that nobody is reviewing their own case.”

Mr Noonan said there was no need to widen terms reference beyond IBRC. “We have seen situations before when it was in the interest of people to widen the terms of references so that the review will go on indefinitely, and we have had the Moriarty Tribunal and other tribunals going on for 12 or 14 years.

“The issues of concern here arise from IBRC, Anglo Irish bank and that’s what is going to be addressed in the review.

Asked if KPMG has possession of the list of shareholders who benefited from the €5 million awarded after the sale Mr Noonan said he believes the liquidators had access to the information.

“I understand they (KPMG) have access to it (the shareholder list) anyway because they have access to all the documents that they inherited from IBRC when they took over, that’s why I appointed them to do the first review because first of all they have all the data in their possession,” he said.

“Secondly, they understand how liquidation works, thirdly they are forensic accountants so they understand how the accountancy system works and they are experts in company law.”

Separately on Monday Taoiseach Enda Kenny said the Siteserv share register should be published “forthwith”.

Speaking at a launch of Fine Gael’s same-sex marriage referendum campaign, Mr Kenny also rejected suggestions of a conflict of interest on behalf of the special liquidators carrying out a review into IBRC sales.

Government sources say it is expected the register will be made available to “public access” later today or tomorrow.

The register is held by KPMG’s Kieran Wallace, and is expected to be posted on the “relevant website”, sources said.