Niall Ó Donnghaile (Sinn Fein) | Oireachtas source

Cuirim fáilte roimh an Aire Stáit. I am covering these statements on behalf of my colleague Senator Gavan, who is at the Council of Europe in Strasbourg. In approaching this debate I remember the advice given to me in the last Oireachtas that when it comes to situations like this, I should follow the numbers or, in this case, the money. I did precisely that regarding the formal investigation into the 2012 sale of Siteserv, a business services company. Following the money regarding Siteserv revealed a disturbing level of abuse of power among the wealthy and the elite in sections of a financial hierarchy who thought, and indeed behaved, as though they were an unaccountable power unto themselves. The first thing that struck me about this financially sordid affair is that the bank involved, IBRC, formerly Anglo Irish Bank, which was then State-owned and had received a €34 billion bailout from the taxpayer in 2009, decided to write off €118 million of €162 million owed to it by Siteserv. It settled on a sum of €44.3 million for the sale of Siteserv. An already overburdened taxpayer had to carry the loss of €118 million. Next Siteserv shareholders would be paid €5 million to ease their financial situation. There was, however, no financial gift to ease the financial burden on the hard-pressed taxpayer.

In June 2015 the commission of investigation was established. Mr. Justice Brian Cregan was appointed to lead it. In the course of his investigation many issues pertaining to the handling of the overall situation by IBRC and by individuals were unearthed. One issue was a failure by IBRC to secure €2.1 million from the proceeds of the Siteserv sale, which, of course, directly affected the taxpayer's burden. The other issue was that preferential treatment was granted to Cathkin Investments Limited, or Millington, to buy Siteserv when at least one other company was interested in buying it at a higher price - another loss to the taxpayer. The commission found that this "buddy deal" with Millington was "so tainted by impropriety and wrongdoing" that, from the perspective of the bank, the transaction was not commercially sound. In this regard the commission also found that the manner in which the transaction was conducted, the decisions and actions taken by individuals in the course of the transaction, and its outcome were all unreasonable from the perspective of the bank and, therefore, the taxpayer. As for the sale of Siteserv to Millington, the commission said this decision was made "without even considering whether to contact" other interested bidders and described this behaviour as "totally improper".

The commission also found that throughout the Siteserv sale process there were two parallel processes at play, as other colleagues have said. One was above the surface, seemingly conducted by the company in plain view, but the other was below the surface, carried out without the knowledge of IBRC. In the words of the report, this "below the surface process" "undermined the integrity of the Siteserv sale process".

The commission also criticised the credit committee of IBRC for its failure to disclose the paperwork in respect of the €5 million payment that was made to the shareholders as part of the Siteserv transaction. The commission stated that that failure contributed to IBRC recovering up to €2.1 million less from the proceeds of the Siteserv sale, to the detriment of the taxpayer.

The comments of the commission on individuals, namely, Mr. Dix, Mr. Harvey and Mr. McFadden make for pretty damning reading. They are shocking and reveal disregard which some in high places have for the requirements by which ordinary citizens abide every day. The report lifts the veil on a reckless and elitist culture that infected certain echelons of big business and high finance during a dark chapter in this State's history.

We must remember we are dealing here with a bank that the taxpayer had bailed out at huge economic and social cost. The findings of the report also reveal a sad fact that has bedevilled this State and its citizens for far too long, that is, that there is a revolving door between the corporate world and the State and that it opens at times when in fact it should be very firmly closed. It is quite clear that we still do not have robust enough safeguards in place to ensure that individuals do not move freely and with ease between the corridors of corporate Ireland and the corridors of power.

This inquiry has cost the taxpayer €30 million in seven years. We need to take stock of this process and evaluate whether it is fit for purpose, whether it delivers value for money and whether it acts as an incentive or a disincentive for further corporate malpractice. It cannot be the model we pursue in eradicating wrongdoing. It is important that, following this report by the commission of investigation, the Government charts a clear and robust pathway forward. I agree with other colleagues in looking forward to the Minister of State outlining what steps the Government plans to take next on this issue.