Oireachtas

C&AG confirms he cannot investigate Siteserv sale

John McGuinness says new legislation needed to allow C&AG to conduct review

PAC Chairman John McGuinness TD. Photograph: David Sleator
PAC Chairman John McGuinness TD. Photograph: David Sleator
Ciarán D'Arcy
Thu Apr 23 2015 - 10:06

The Comptroller and Auditor General (C&AG) has confirmed his office does not have the power to investigate the sale of Siteserv because he cannot inquire into matters relating to the Irish Bank Resolution Corporation.

C&AG Seamus McCarthy told the Public Accounts Committee (PAC) that under the current legislation he has no power to examine sale of Siteserv.

Mr McCarthy said the Department of Finance had contacted him yesterday and put it to him that it would require a change in legislation in order for him to access records and have the requisite powers.

Mr McCarthy’s statements support a view expressed by the chair of the committee John McGuinness that Taoiseach Enda Kenny was wrong to suggest the C&AG could conduct an investigation into the sale of Siteserv.

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Speaking in the Dáil yesterday, Fine Gael leader Kenny said the independent body would seek to examine the 2012 sale, which was said to have incurred a loss in the region of €105 million for the State.

However, Fianna Fáil TD Mr McGuinness says current legislative constraints imposed upon both the Comptroller and Auditor General and the PAC precludes them from reviewing details of the transaction and producing findings.

"The Taoiseach did not check that course of action out before he announced it in the Dáil. It is clear from the Comptroller and Auditor General Act that he does not have the remit to do what (Mr Kenny) suggested," he told RTÉ radio. "It was wrong of him to draw that independent agency's name into it."

He added that PAC members had checked with the Comptroller’s office, which confirmed that no such investigation could be undertaken under current circumstances.

“I would encourage the Taoiseach and the Government to bring forward the type of legislation to bring forward the type of inquiry that is required.

“An immediate inquiry is needed to examine the facts of this . . . What’s not acceptable is an in-house inquiry – we’ve had too many inquiries carried out by people within the agency which is being inquired into,” said Mr McGuinness, who believes other large transactions which may have cost further taxpayers’ money could also necessitate investigation.

Speaking on the issue on Thursday Minister for Transport Paschal Donohoe said the Government had made clear its commitment to putting in place an independent inquiry.

“We’re looking at how that can be done at the moment. Minister Noonan, when he was informed of this original transaction, was assured that it was in the best interest of the then IBRC and the taxpayer overall.”

Controversy erupted over the sale of Siteserv to the Denis O'Brien-owned Millington group earlier this week when it was revealed that the €45 million deal fell far short of the €150 million previously paid by the Irish Bank Resolution Corporation (IBRC) for the company.

In a response issued Thursday morning, Department of Finance officials said former IBRC chairman Alan Dukes confirmed that the transaction had been carried out in the correct fashion – a reiteration of claims made by Minister for Finance Michael Noonan recently.

Mr Dukes contends that the issue was not raised at meetings between the Government and the IBRC.

Speaking to RTÉ, Independent TD Catherine Murphy said documents she had obtained through Freedom of Information legislation revealed a difficult relationship between the two bodies.

“I was really surprised at the relationship between Department of Finance officials and the IBRC. It was very fractious, it was not a good relationship,” she said.