Inquiry concludes Siteserv transaction ‘tainted by impropriety’

Mr Justice Brian Cregan

Mr Justice Brian Cregan was appointed in 2015 to lead a commission of investigation into the controversial transaction, which saw the State-owned Irish Bank Resolution Corporation (IBRC) sell Siteserv for €45 million while writing off €119m of its €150m debt.

His final 1,500-page report, published yesterday, examines the Siteserv transaction in great detail, making extensive findings of fact which are summarised in Chapter 27, which alone runs to over 80 pages.

Among these findings, the inquiry determined that the IBRC bank made its decision to approve the sale of the Siteserv Group in good faith, but based on misleading and incomplete information provided to it by the Siteserv company.

It also found that there was a “below the surface” process where certain events occurred in the course of the Siteserv sale process without the knowledge of the bank.

This “below the surface” process meant that steps were taken and decisions made in the course of the Siteserv sale process in a manner that was ‘manifestly improper’ and which undermined the integrity of the Siteserv sale process.

The commission has also determined that it can be concluded that the Siteserv transaction was, from the perspective of the bank, so tainted by impropriety and wrongdoing, that the transaction was not commercially sound.

It concludes the bank could have recovered up to €8.7 million more than the €44.3 million it agreed to accept in the sale.

In a statement, the government said it “accepts the findings of the commission, and believes that the report shines a light on unacceptable practices by certain parties during the course of the transaction”.

The statement adds: “The Taoiseach is arranging to bring relevant recommendations made by the commission in the report to the attention of the Department of Enterprise, Trade and Employment, the Revenue Commissioners, the special liquidators of the IBRC, the Corporate Enforcement Agency, the Central Bank and the official assignee in a bankruptcy case.”