IBRC Commission: lack of capital loss definition bizarre and untenable - Adams
Responding this morning to the publication of the Interim Report of the IBRC Commission by Mr. Justice Brian Cregran, Sinn Féin President Gerry Adams TD has described the lack of definition of what defines a capital loss in the Commission’s terms of reference as “bizarre and untenable”.
Deputy Adams said: “I note with grave concern the issues raised by Judge Cregan in the Interim Report of the IBRC Commission, particularly matters relating to the Commission’s terms of reference which were highlighted consistently by Sinn Féin during the Commission's establishment”.
"Sinn Féin voted against the terms of reference proposed by the Government because we believed they were inadequate and because the Government refused to accept our amendments."
“The Report highlights a series of major errors on the Government’s part, including the under staffing and under resourcing of the Commission, as well as a remarkable lack of appreciation for the lack of legal scope for the Commission to carry out its work”.
“The most glaring error however, relates to a lack of clarity surrounding the definition of what defines a capital loss - an omission which has led to the farcical situation whereby the Special Liquidators of IBRC have been able to self-define what constitutes a capital loss in disclosing relevant transactions to the Commission”.
“Mr. Justice Cregan acknowledges this in his Report by admitting that there are upwards of 156 transactions where loan/loss provisions in excess of €10million were recorded by the IBRC during the Relevant Period but are not included in the schedule of transactions provided by the liquidators to the Commission.”
“Assuming a minimum difference of €10million between the par value of the loans in question and the value of their disposal, the investigation of at least €1.56billion worth of losses incurred by the IBRC as a direct result of decisions taken during the Relevant Period are outside of the bounds of the Commission’s work, at the behest of the Special Liquidators. This is a quite frankly bizarre and untenable situation."