The Central Bank scrutinised Irish Bank Resolution Corporation’s sale of Siteserv to businessman Denis O’Brien in the wake of the deal in 2012. No regulatory or enforcement action followed the review, The Irish Times understands.
News of the Central Bank examination of Siteserv’s sale by the former Anglo Irish Bank comes as Government prepares to publish terms of reference today for an inquiry into the transaction by IBRC’s special liquidators.
The Central Bank is understood to have carried out the review of the sale arrangements on its own initiative in its capacity as prudential supervisor of IBRC. The conclusions of the review are not known, but no further action was taken and the matter is not ongoing from the Central Bank’s perspective.
Separately, the Irish Stock Exchange declined to say whether it ever examined a spike in the trading of Siteserv shares before IBRC received bids for the firm.
Tánaiste Joan Burton said more information might be needed about the details of people who bought shares in Siteserv before it was sold in March 2012.
Ms Burton said “the transactions went through the stock exchange so we may need some information on exactly where that documentation would be”.
Independent TD Catherine Murphy, who first raised concerns about the sale of Siteserv, said the matter should be investigated by the stock exchange.
However, the exchange said it was precluded from making any comment on such matters. “The Irish Stock Exchange is prohibited by law from discussing investigation matters,” a spokesman said.
Transactions
Nothing has ever emerged to suggest the exchange took any action in relation to the share transactions. Siteserv was listed on the Enterprise Securities Market, a junior market of which the main exchange was frontline supervisor.
Although the Central Bank supervises the Irish Stock Exchange, it had no comment on the Siteserv trades.
“As part of its market integrity strategy, the Central Bank uses a variety of information sources to monitor activity on regulated market operators and multi-lateral trading platforms, such as: securities transactions data, suspicious transaction reports and various forms of market intelligence,” a spokesman said.
“The Central Bank cannot comment on specific supervisory or investigative issues.”
A spokesman for the Department of Finance said any issues regarding shares would be a matter for the stock exchange.
The share trades are unlikely to be included in the liquidator’s review of the sale.
Some figures in Government circles believe a further inquiry may yet be required but Government sources also rejected suggestions of a conflict of interest on the part of Kieran Wallace, the liquidator.
