The National Treasury Management Agency (NTMA) has said it will have to “look hard” at its systems and protocols after it was discovered in recent days a €5 million fraud had been perpetrated against it.
NTMA chief executive Frank O’Connor on Monday said the payment was made to a third party at a time when there was a financial drawdown or capital call anticipated, involving one investee company of the Ireland Strategic Investment Fund.
There had previously been a legitimate payment to the company.
Speaking at the unveiling of the NTMA’s annual report for 2024, he said the €5 million fraud was “an extremely serious matter” for the agency.
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He said there was no suggestion that there had been an IT breach or any threat to the IT systems in the NTMA.
Mr O’Connor said when the issue was discovered, the NTMA immediately made a report to the Garda, the Department of Finance and other relevant authorities.
“It won’t surprise you that our immediate focus is on recovery and investigating the matter fully”, he said.
Mr O’Connor said that having approved an investment, there could be several capital calls or drawdowns of money.
“We will have to look hard at our systems and our own protocols to ensure was there anything we could have spotted (or) any shortcomings and the investigation will (look) at that,” he said.
Mr O’Connor said a capital call was not just a phone call. He said it involved a process that would have to be engaged in and that would lead to the withdrawal of funds.
He said there was no suggestion that the fraud could have been perpetrated on the basis of inside information.
“Obviously a fraudulent actor may have gathered enough (information) outside of the NTMA that may have led to it. I can’t really get into any more detail at this stage and obviously we will investigate the matter fully.”
Minister for Finance Paschal Donohoe backed management at the NTMA. He said the €5 million fraud was “regrettable, but extremely rare”.
“In my many years of engagement with the National Treasury Management Agency, I have seen at the first hand how seriously they take all matters with regard to security, and the ongoing and huge efforts that are made to protect the money of the taxpayer of Ireland,” he said.
“I have seen at first hand the investments and care they make to protect their systems and to protect the money of our country. I know that every effort will be made to investigate, to review and to follow up on all of the circumstances around this incident.”
