SiteServ review commences

Minister for Finance Michael Noonan has published the terms of reference for the review of the Irish Bank Resolution Corporation’s handling of the SiteServ sale. Noonan has directed the special liquidators of IBRC – KPMG’s Kieran Wallace and Eamonn Richardson – to review and report on all relevant transactions, activities and management decisions.

The special liquidators will also be required to report “any transactions which give rise or would likely give rise” to public concern about the return to the taxpayer and any evidence of “material deficiencies” in the performance by persons acting on behalf of IBRC.

SiteServ’s operations cover infrastructure and utility support services in Ireland, the UK and the Caribbean. The company sold its underlying business in Ireland in March 2012 to Millington, a company owned by investor Denis O’Brien, for €45 million. The company was liquidated, resulting in the write-off of over €105 million of debts owed to Anglo Irish Bank and the payment of
€5 million to SiteServ’s shareholders. One of its subsidiaries, GMC/Sierra, was subsequently awarded a large water metering contract.

The issue was first raised by independent TD Catherine Murphy (pictured) who maintains that there was a clear difference of opinion over the deal between the Department of Finance and IBRC.

Fellow independent Stephen Donnelly has questioned the involvement of KPMG in the review as the firm was involved in the original transaction. The review will be completed by 31 August. It will not include transactions involving the acquisition of assets by NAMA as this would, according to the Government, prolong the review process.