With considerable reluctance, a commission of investigation has been appointed by the Government to examine the disposal of assets and the treatment of borrowers by IBRC and in particular, circumstances surrounding the sale of Siteserv to an Isle of Man company owned by Denis O'Brien. Months of prevarication and offers of limited and potentially compromised inquiries were finally blown away by growing levels of public disquiet and a propsective l election. As an illustration of reformed politics and a commitment to transparency, the episode was deeply disappointing.
The terms of reference of the commission are as broad as could be expected. It will examine not only the Siteserv deal but 40 other transactions that involved write-downs of value in excess of €10 million. Decisions by the IBRC board and potential conflicts of interest involving its wealth management division will be scrutinised. So will the loan terms that Mr O'Brien and other borrowers had with the beleaguered bank. There will be a detailed examinatio of the Siteserv transaction. The relationship between IBRC and the Department of Finance will be explored, as will the role of Minister for Finance Michael Noonan.
In addition, any evidence of insider trading or preferential treatment of clients will be examined. The amount of work involved and the likelihood of legal challenges would suggest the commission is unlikely to report this year.
The need for a comprehensive investigation was evident from the outset. But a great unwillingness exists in Irish life to challenge institutional authority and, in particular, powerful individuals. This subservient trait is embedded at all levels of Irish society. It took patience and persistent questioning over many months by Independent TD Catherine Murphy to rouse the public, to expose serious Department of Finance concerns in the Dáil and to vindicate Oireachtas privilege in publicising matters of serious public concern. It was a fine example of the influence individual TDs can exert outside the ambit of the parish pump.
There has been much political point-scoring in the rush to establish an inquiry. Now that a commission has been appointed, it is worth asking what the consequences might be if any IBRC decisions are found to have favoured companies and individuals at taxpayers’ expense. Can sanctions be imposed for ostensibly poor decision-making?
The mantra – “no wrongdoing” – is regularly heard in such circumstances. Perhaps that is what will be found by the commission as it trawls through IBRC’s books. It is possible that it may question commercial judgments or the way matters were managed. Even here conclusive findings may difficult to make.
It has a considerable weight of expectations, but delivering a meaningful report will be a significant and difficult challenge.