The Government may introduce an emergency Bill in the Dáil this week to overcome a legal obstacle that has effectively stalled the work of the Commission of Investigation into the wind-up of the IBRC.
Taoiseach Enda Kenny confirmed on Sunday he had received a letter from Judge Brian Cregan, the chair of the Commission of Investigation into the Irish Bank Resolution Corporation.
Judge Cregan informed the Government that an issue surrounding his powers in determining on issues of confidential and privilege had meant he “was not in a position to proceed” with his investigation of any relevant transaction where “write-offs” occurred.
The Commission is investigating disposals by IBRC, which was the former Anglo Irish Bank, involving write-downs of €10 million or more.
They include the sale of Siteserv to a company controlled by businessman Denis O'Brien, a disposal which involved a write-down of €119 million .
The Commission is also investigating a claim made in the Dáil by Social Democrats co-leader Catherine Murphy that preferential interest rates were given to some large borrowers.
It is understood that the Commission did not have the powers to make a determination as to whether or nor confidential documents in the possession of IBRC liquidators KPMG should be distributed to other parties.
In statement, the Taoiseach said he received latter from Judge Cregan on Friday which raised the issues of confidentiality and privilege.
The statement also refers to a request for an extension of time, which suggests that it will not be in a position to report by the deadline of the end of December 2015, set out by its terms of reference. Ms Murphy and Fianna Fáil finance spokesman Michael McGrath both claimed today that the report would not be published until well after the General Election.
The Taoiseach’s statement said he contacted Attorney General Maire Whelan on Friday on the implications of the determination. He asked her to advice him on the legal options available to ensure the investigation can by competed effectively and quickly.
“He requested this advice as a matter of urgency to ensure that he can report to the Government as soon as possible on the steps necessary to ensure that this is achieved.”
Both Mr Kenny and Minister for Transport Paschal Donohoe, in separate interviews, raised the possibility of emergency legislation being rushed through the Dáil.
Ms Murphy told RTÉ today: ‘The last thing we want is some kind of fig leaf or phoney initiative. We need to hear from the Taoiseach as to what advice he got from the AG in the first place about setting up the inquiry.
“There is a real possibility of it collapsing, she said, adding: “That will cause absolute outrage. The people will not be taken for fools on this. It is absolutely essential that this information is known
Mr McGrath said: “It would now appear there are fundamental problems in the background that have prevented the inquiry from getting off the ground
“There is no question whatsoever of it reporting next
month at this stage.
“Questions do arise for the Attorney General who advised the government on the establishment of the Commission and knew what the purpose of the Commission was.”
Sinn Féin finance spokesman Pearse Doherty said: “For [THE INQUIRY]it to fall flat on its face just before a general election will quiet rightly raise suspicion.
“Every effort must be made by the government to salvage this investigation even if that means bringing emergency measures to the Dáil this week.”
Full text of statement issued by Department of the Taoiseach on Sunday:
“The Taoiseach received a letter from the Chairman of the Commission of Investigation into
IBRC, Judge Brian Cregan, on Friday (6 November), updating him on the work of the Commission. This letter refers to a determination made by the Commission related to the issues of confidentiality and privilege which means that “it is not in a position to proceed with its investigation into any of the relevant “write-off” transactions”.
The Commission is also in the process of preparing an Interim Report for the Taoiseach, as specified Minister under the Commission of Investigation Act, which will outline the work of the Commission to date, the issues which have arisen and to seek an extension of time for the completion of the work of the Commission.
The Government established the Commission of Investigation to ensure an independent investigation into issues of significant public concern regarding certain transactions relating to the Irish Resolution Banking Corporation.
These issues are detailed in the Commission's Terms of Reference as approved by the Oireachtas.
The Government believes that is essential that a full and independent investigation into these transactions is completed as quickly as possible. On Friday therefore the Taoiseach requested advice from the Attorney General on the implications of this determination, and the legal options now available to ensure such an investigation can be completed in an effective and timely manner.
He requested this advice as a matter of urgency to ensure that he can report to the Government as soon as possible on the steps necessary to ensure that this is achieved.”
