Further evidence of the tensions between the Government and the board of IBRC as the bank was liquidated are contained in correspondence released under the Freedom of Information Act. It shows that IBRC chairman Alan Dukes warned in a letter to Minister for Finance Michael Noonan that comments made by Ministers and Government spokespersons following the announcement of the planned liquidation in February 2013 were “unjustly damaging to those concerned,” including the board and senior management of the bank.
The correspondence, released to TD Catherine Murphy, includes a letter sent by Mr Dukes to Mr Noonan on February 13th 2013, just eight days after the sudden liquidation was announced. IBRC had taken on the assets of Anglo Irish Bank and Irish Nationwide and its liquidation was announced as part of a plan to refinance the State debt associated with these two institutions.
Several clarifications
Mr Dukes wrote to the Minister saying he sought several clarifications of “reputational, professional and personal significance to the former directors and management” as they would bear directly on their capacity to act as directors and executives in future.
Mr Dukes sought to clarify whether the directors’ responsibility ended at the time of liquidation and what their obligations were in relation to reporting on the company’s affairs. He also asked whether the Government would continue to indemnify them from legal action, and meet any legal costs they might face in relation to the liquidation.
Mr Dukes took issue with any suggestion that the bank was insolvent at the time of liquidation, saying it had met all instructions from Government and had assurances of continued Government financial support. He took particular issue with comments from Ministers and Government spokespeople, one of which had said that Anglo had got a “bullet in the head”.
The directors and the chief executive had been appointed by the Government, Mr Dukes pointed out, and had been given the job of trying to limit the damage from the legacy of Anglo and Irish Nationwide. “I am not aware that this has been recognised by any Government participant in the debate and comments since February 6. This is unjustly damaging to those concerned,” he said.
Reasons for liquidation
Mr Noonan replied, on February 26th, thanking the board and assuring them that the reasons for liquidation “were entirely distinct from the performance or directions of both the board and management of IBRC.”
Any references by Government sources to the wind up related to the legacy of Anglo and Irish Nationwide, rather than any reflection on their performance, he said.
In relation to the issue of insolvency, Mr Noonan said that the move was not a normal “liquidation in insolvency” under companies legislation, but rather a move under a special IBRC Act. He said it was not anticipated that the assets would meet the debts in full, though this may not now be the case, given the price received for selling off the assets.
Earlier correspondence released to The Irish Times under Freedom of Information legislation had shown significant tensions between Mr Dukes and the Department of Finance over the IBRC's mandate and over relationships with, and directions from, senior civil servants.
