Aynsley banking inquiry claims sent to IBRC commission

Claims at the banking inquiry by the former chief executive of the Irish Banking Resolution Corporation have been formally forwarded to the Commission of Investigation into certain matters at the bank.

Fianna Fáil TD Michael McGrath, who is a member of the banking inquiry, said the allegations by Mike Aynsley warranted investigation by Mr Justice Brian Cregan, who is looking into transactions by IRBC, formerly Anglo Irish Bank.

At the banking inquiry last week, Mr Aynsley alleged a senior official in the Department of Finance told one of his executives to accept a lower bid in the sale of a major business, because the higher bid was made from "a named Irish businessperson or his company".

Mr McGrath sent the evidence to the Chairperson of the Commission of Investigation into certain matters at IBRC. He said: “The Banking Inquiry has received legal advice that the commission of investigation, and not the banking inquiry, is the appropriate body to investigate matters relating to IBRC that fall within the commission’s terms of reference.

“To avoid any doubt and to ensure the Commission has been furnished with last week’s evidence, I have today written directly to the chairperson of commission and I trust he will deal with this information in the appropriate manner in the course of his work.”

Mr Aynsley had told the inquiry the Department of Finance was politically motivated and said this had emerged in January 2013 in an email exchange between IRBC and the Department.

He said the Department of Finance official urged the bank to instead accept a lower bid from a rival bidder, which was €100 million less than the one from an unnamed businessman.

He said: “The response from the DoF official was that the lower price would be preferable and that he believed the Minister for Finance [Michael Noonan] would also be supporting of that position.”

Mr Aynsley did not name the businessman concerned, but asserted that his identity was the reason cited by the Department official in wanting to accept a lower bid instead.

Sinn Féin TD Mary Lou McDonald is also to make contact with the Commission to ensure these allegations are investigated.