Michael Noonan rounds on Fianna Fail in Siteserv debate

Minister for Finance Michael Noonan rounded on Fianna Fail in a sharp attack during a Dail debate on the ongoing controversy over the sale of construction services company Siteserv.

The Government rejected the party’s motion calling for an independent commission of investigation into the sale of the company to businessman Denis O’Brien, and won the vote 73 to 43.

Fianna Fail public expenditure spokesman Sean Fleming told the Minister there was a “bit of the Bart Simpson about you the way you went about this - not your fault. You knew nothing,” but this would not wash because the public expected more from the Minister for Finance.

Party leader Micheal Martin claimed there was a “stitch up” to have KPMG review the sale “to get the outcome you want”, when KPMG was involved in the sale.

And he said there had been no attempt by Government to defend Department of Finance civil servants concerned about the sale, who were criticised by the IBRC chairman.

But rounding on Fianna Fail during the three-hour debate, Mr Noonan reminded them that when they were making allegations, “you should remember it was your board, your chair, you appointed them”.

He said “the chairman was appointed to the board of IBRC by my predecessor Brian Lenihan and subsequently was made chairman of the board by Deputy Brian Lenihan. And the bulk of the board was appointed by yourselves.”

But he stressed the review was because of public interest following recent speculation and was not because of any evidence of deficiencies or of the transactions not being commercially sound.

Mr Noonan said he and his department had no day-to-day dealings with the bank which did not have to report to him. They had no input because of the commercial freedom given in legislation.

Billions of taxpayers’ money put into Anglo Irish Bank in 2009 and 2010 would never be recovered, he said.

He insisted the review process would be robust, with the oversight of retired High Court judge Iarfhlaith O’Neill.

And he said special liquidators KPMG were best placed to conduct the review thoroughly because of their access to all the books and records.

When he received the report he would make it available to the relevant Oireachtas committees.

And if the committees were still concerned “they can proceed as they see fit”.

Independent TD Catherine Murphy insisted the review was not independent and an independent inquiry was needed.

Ms Murphy whose repeated parliamentary questions and freedom of information requests led to revelations about the sale, said KPMG should recuse themselves from the review because it would damage their reputations.

She said the review could not be considered as independent because KPMG led the sale and the liquidation of the sale. A map of all the people involved in the sale led back to employees in KPMG. Having KPMG conduct the review process undermined it from the start, she said.

She said the buyer of Siteserv had some of the biggest loans with IBRC and she claimed that the interest charged on Mr O’Brien’s loans was effectively subsidised.

Minister for Public Expenditure and Reform Brendan Howlin said the review was the best way to deal with the issue. Nobody believed IBRC would get the full price for the assets on sale. They were distressed assets and the bank was trying to get the best value it could.