Tuesday, 14 February 2012
Department of Finance
Banking Sector Regulation
Gerry Adams (Louth, Sinn Fein)
Question 146: To ask the Minister for Finance if he will confirm if a retention agreement has been circulated between a company (details supplied) and IBRC and if there was a public procurement process for this agreement; if he will further confirm if the retention agreement is for this company to advise upon the UK commercial loan book and if not, if he will detail what the company may have appointed to advise IBRC upon; the duration and cost of such a retention agreement; if such a retention agreement prevents one of the largest distressed debt purchasers in the world the company to purchase any IBRC assets; and if he will make a statement on the matter. [7689/12]
Michael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
While IBRC is wholly State owned, it is not formally covered by public procurement rules as its commercial remit makes it subject to market forces. Under the Relationship Framework the Board of the bank is responsible for the day to day operations of the bank. The bank has retained the services of the ‘strategic advisory arm’ of the Group, referred to in the question. The bank has previously been requested by my Department to confirm that there is no conflict in relation to the appointment. The bank obtained independent advice that this entity operates independently of the ‘investment arm’ of the Group. The appointment was made having regard for the Bank’s procurement policy. Details of the terms and purpose of the bank’s appointment of this advisor are commercially sensitive and it is not appropriate to disclose such information.