Picture
Caption: Transparency in Ireland A brief snapshot of my experience trying to get real answers on the Siteserv deal
Catherine Murphy TD
Picture
Caption: On the 16th of December 2015 I asked the Minister for Finance if he was satisfied that IBRC acted in the best interests of the State and if he had sought answers from them in relation to various aspects of the sale.
Picture
Caption: In his reply the Minister told me the following:
-IBRC operated at 'arms length' & that 'it was a matter for the Board of IBRC"
-He did not answer my query regarding his knowledge of any higher bids
-He did not answer my query regarding the same legal firm operating for buyer & seller
-He did not answer my question about whether or not he had investigated the sale of Siteserv
-He stated that he was satisfied that the Board of IBRC were satisfied that the sale represented the best return for IBRC
Picture
Picture
Caption: On the 17th of December 2014, I asked the Minister to provide me with a list of all disposals by the IBRC and details on each.
He replied to say that information relating to disposals we commercially sensitive.
Picture
Caption: On the 4th of February 2015 I asked had his Department queried the reason such a large loss to the Sate (€100m), how it was permitted to happen & why his Department were not concerned at this loss.
Picture
Caption: The reply I received stated:
-as previously indicated to me, it was a matter for the Board of IBRC
-The State did not intervene in the day to day operations of the bank
-the Minister was advised by the Board of IBRC they were satisfied the successful bid represented the best deal for the State
Picture
Picture
Caption: On the 26th February 2015 I asked about the Relationship Framework governing interactions between the Department of Finance and the IBRC & the financial thresholds which would have triggered a requirement for interaction.
Picture
Caption: In his reply the Minister confirmed that any transaction resulting in a adverse impact greater than €100million would trigger a mandatory interaction with the State.
Picture
Picture
Caption: I queried why, given that the Siteserv sale resulted in a loss of greater than €100 million, that this trigger had not been activated.
The Minister's subsequent reply revealed that the Relationship Framework did not come into effect until 29th March 2012 - 2 weeks following the sale of Siteserv.
Picture
Picture
Caption: On the 12th of March 2015 I asked if the Minister was aware that the sale of Siteserv included a provision that a portion of the sale price was to be directed to Shareholders (approx €5 million) & that several Board members personally profited substantially from the deal
Picture
Caption: In his reply, the Minister admitted, for the first time, that
-In 2012, "following receipt of critical representations" his Department had inquired about the Siteserv transaction
-His Department undertook a review into the transaction
-The review raised concerns about "the quality of some of the decisions taken" including that a payment had been made to Shareholders
-He himself had a meeting with the Chair and CEO of IBRC following initial review meetings by his officials & that he satisfied himself at that meeting that the sale was handled in the best manner possible to protect the State's interest.
Picture
Picture
Caption: On the 26th March I asked if the Minister could confirm that higher offers for Sitserv were turned down during the sale process, and if he had considered that the process had been rushed.
Picture
Caption: In his reply, the Minister confirmed that
-An unsuccessful bidder made representations to his Department regarding the sale process
-That the Siteserv transaction was run by Siteserv and it's advisers.
-The review undertaken by his Dept revealed that a higher bid for Siteserv was received after an exclusivity arrangement had been entered into with Millington (owned by Denis O'Brien)
Picture
Picture
Caption: On the 1st of April 2015 I asked the Minister to outline the process which resulted in him being convinced that the sale of Siteserv represented the best outcome for the State, the number of bids received in both rounds, tender details and ranking of bids.
Picture
Caption: In his reply the Minister states that 50 candidates were identified and ultimately 8 bids shortlisted
(no further details were given).
Further, the Minister reveals for the first time, that far from him having satisfied himself in the July 2012 meeting with IBRC CEO & Chairperson, there were concerns which warranted a meeting in August 2012 between the Secretary General of his Department (John Moran) and IBRC senior officials.
The reply states that at the point of that meeting "the transaction had concluded and no further action COULD have been taken."
Picture
Picture
Caption: In addition to this quagmire of partial answers and strand by strand revelations, there are also other issues which the Minister has refused to answer and I have submitted Freedom of Information requests on these matters.
I await the decision of the Deciding Officer in relation to my FOI requests.
-Catherine Murphy TD 2nd April 2015
