The Dublin Docklands Development Authority (DDDA) has said its internal code of conduct applies to any conflicts of interest that arise from its involvement in the development of the Irish Glass Bottle site.
The chairman of the DDDA, Lar Bradshaw, is a director of Anglo Irish Bank, which is financing the project, while the chairman of Anglo Irish Bank, Seán FitzPatrick, sits on the board of the DDDA.
The €1.46 billion project hinges on the DDDA using its statutory power to exempt the development - which involves 2,166 apartments - from going through the planning process.
The authority plans to invest €32.17 million in a joint venture that will buy the site from South Wharf plc for €424.4 million. The purchase will be backed by a €288 million loan from Anglo Irish Bank, which will provide another €898 million in development finance at a cost of €142 million.
The other investors are the property developer Bernard McNamara, who is investing €57.5 million, and property financier Derek Quinlan who is to pay €46.3 million. Mr McNamara has raised the bulk of his stake through a loan stock placed by Davy Stockbrokers with their clients. The sale is not due to close until early next year.
The DDDA said yesterday that it "operates within a code of conduct which is in accordance with strict code of conduct for governance of State bodies and general best practice corporate governance guidelines.
"For board meetings, there is a practice of board members excusing themselves from meetings where they perceive they have a direct conflict of interest. In other less significant cases, members advise of potential conflict so that the board is fully informed."
A spokesman said the code "applies in every case" but would not clarify how it applied in the case of the Irish Glass Bottle project. The DDDA also refused to explain how its involvement in the project came about, saying it was precluded from commenting as the takeover of South Wharf Plc is a stock market transaction.
An information memorandum on the deal prepared by Davy for its clients states that the DDDA have confirmed that they will seek to have Section 25 of the planning Acts apply to the site. If successful, this means that the development of the site will be an "exempted development" for the purposes of the Planning Acts.
Established in 1997 the DDDA is responsible for the regeneration of the capital's docklands. As well as an executive board chaired by Mr Bradshaw, it has a council representing diverse interests. Both the board and the council are appointed by the Minister for the Environment.
According to the Davy memorandum it has "fast track planning powers, which guarantees the authority's ability to make things happen for its development partners".
In the statement issued yesterday the DDDA said "the interest of the authority in the Poolbeg peninsula goes back to 1997 when the master plan 1997 recommended that part of the peninsula be designated as an area suitable for a planning scheme. In 1998, when a site belonging to AIB (adjoining the IGB site) was offered for sale by tender, the authority was the under-bidder. The master plan 2003 restated the recommendation from the 1997 plan and extended the area to include the IGB site."
