Inquiry finds six largest IBRC write offs cost State €1bn

The inquiry into transactions at the Irish Bank Resolution Corporation (IBRC) has found that the six largest write offs led to a combined loss of almost €1 billion to the taxpayer.

Taoiseach Enda Kenny has published an interim report from the IBRC Commission of Investigation, which is headed by Mr Justice Brian Cregan.

Mr Justice Cregan says an investigation into all 38 transactions which led to a loss of more that €10 million, as had been requested by the Government, would take “several years”.

He also says he does not have adequate powers to complete the task given to him by the Government and needs legislative change to allow him continue. He also asks for another judge to help and more resources to help with his inquiry.

Mr Justice Cregan also proposes prioritising a number of transactions that led to the largest write offs, which he claims could be completed in less than two years.

The total value of the write offs of all 38 transactions is €1.9billon.

“There are six transactions with write-offs greater than €100 million,” he says. “The combined total of these six transactions is approximately €859 million. There are a further six transactions where the write-offs are between €50 million and €100 million. The total amount written off in respect of these transactions is €448 million.

“Thus the total of write-offs of the first twelve transactions is €1.3 billion. There are a further six transactions where the write-offs are between €30 million and €50 million. The total of these six transactions is €232 million.

“Thus the total amount of write-offs of the first eighteen transactions is approximately €1.5 billion. Thus 81 per cent of the write-offs in terms of value arise from the first eighteen transactions (or, in other words, 81 per cent of the amount of the write-offs arise from 50 per cent of the transactions under review).”

Mr Justice Cregan says that if “one or more additional members of the Commission were appointed (with additional legal resources) then these twelve investigations could be concluded within 18 months to two years (after the legal obstacles have been resolved).

“At that point, the Commission would report back to the Government about the progress of the investigation and its recommendations about how the balance of the transactions should be investigated.”

Mr Justice Cregan also asked that Siteserv, which was sold to a company controlled by businessman Denis O'Brien, be restored to the Register of Companies so it can be investigated.

“Unless the company is restored to the Register of Companies, it will not exist in corporate form and will not be in a position to engage with the Commission. The Commission has not written to Siteserv Plc (as the borrower under the original facilities agreement with IBRC) because it is dissolved.”