Billionaire businessman Denis O’Brien’s “political links” may have been instrumental in the purchase of Siteserv, the company that won the State contract to install water meters for Irish Water, the Dáil has heard.
Independent TD Mick Wallace made the claim and said that in the deal, €100 million owed by Siteserv to the former Anglo Irish Bank “IBRC, which is really the taxpayer”, was wiped out.
He alleged that “two higher bids for the company that would have earned the State more money were rejected” and added: “A former Fine Gael minister was chairman of IBRC at the time the deal was approved.”
Mr Wallace raised the issue during questions to Minister for Public Expenditure and Reform Brendan Howlin and asked the number of contracts awarded to companies part-owned by Mr O’Brien and the total net worth of all contracts awarded to companies owned or part-owned by the businessman.
But Mr Howlin told him: “Bluntly, considering the deputy’s position, I am surprised at some of the assertions he has made.”
The Minister said his department did not collect such information and it was not done through the procurement process either. Public contracts were awarded following a “transparent and competitive process conducted in compliance with very stringent national and European law”.
He insisted that “public bodies cannot favour or discriminate against particular candidates and there are legal remedies which may be used against any public body infringing these laws”.
He said Mr Wallace was making serious charges and Leas-Cheann Comhairle Micheál Kitt told Mr Wallace he should not name a person outside the House who was not there to defend himself.
But the Wexford TD said: “The very nature by which this gentleman ended up in possession of Siteserv is very questionable.”
He added that the chairman of Siteserv “has acted as an adviser to the National Treasury Management Agency and sits on the board of Enterprise Ireland”.
It highlighted the “revolving doors that exist between the corridors of power and governmental bodies”.
But Mr Howlin said the State undertook the procurement process in accordance with law. “We do not blacklist people from being able to apply for particular contracts”.
