Written answers

Thursday, 12 March 2015

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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98. To ask the Minister for Finance relating to the sale of a company by the former Irish Bank Resolution Corporation (details supplied), if his attention was drawn, in advance of the sale, that a portion of the agreed sale price was to be diverted to shareholders of the entity being sold, which resulted in significant sums being accrued to several persons on the board of the entity; if the board of the Corporation similarly were aware of this information; and if he will make a statement on the matter. [10967/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I refer to my response to Question No. 67 answered on 11 March 2015 from which I have drawn in responding to this question.

As set out in the reponse to Question No. 67 answered on 11 March 2015, under the then existing relationship framework the bank was not obligated to consult with me before approving the sale of the company referred to by the Deputy.

Upon the receipt of critical representations following the transaction in question, Department of Finance officials inquired about the transaction with IBRC management as part of their regular engagement.  Following initial discussions, they agreed with IBRC's Chairman and CEO that they would review the transaction involving the company referred to in the question in greater detail to better understand the decisions taken and the impact these decisions had on the process and the final recovery for the bank.

As part of the review, senior management of IBRC made Department of Finance officials aware of the details of the transaction process and the sale in meetings held between both parties.  This review raised concerns with the quality of some of the decisions taken in respect of this transaction, including, among others, that a payment had been paid to the shareholders of the company referred to in the question.

In light of these concerns, I subsequently met with IBRC's Chairman and CEO to discuss concerns regarding this transaction. The Chairman and CEO confirmed to me that the transaction process and its terms, including the shareholder payment, had been thoroughly assessed by the IBRC Board and that the transaction was managed in the best manner possible to achieve the best result for the State.

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