The special liquidators of Irish Bank Resolution Corporation have told the judge investigating certain matters at the former bank that it would take one month to conduct an electronic search of IBRC's files for each of the 38 transactions he is reviewing.
The special liquidators may "only be able to process a limited number of transactions every month due to the capacity constraints in their electronic systems", Mr Justice Brian Cregan stated in his first interim report to the Government on his work, dated November 14th.
This lengthy search period is just one of the reasons why the judge believes it would take seven to eight months to review each of the 38 transactions.
It is also a key reason why he has requested that one or more additional members be assigned to the commission to reduce the workload and speed up its work.
The interim report also outlines how the Irish Stock Exchange has informed the commission that an obligation to "professional secrecy" under company law means it is entitled not to disclose information relating to any possible insider share dealing.
The judge is investigating whether any unusual share trading took place in connection with Siteserv plc in advance of its sale to a company controlled by businessman Denis O'Brien.
The stock exchange has provided data showing dealings in Siteserv shares between January 2011 and June 2012 but has not been prepared to disclose certain other information.
“For entirely understandable reasons, the Irish Stock Exchange has not been able to confirm or deny whether it has information in its possession that it may have acquired pursuant to the obligations of the stock exchange under part V of the Companies Act 1990,” the report states.
The commission issued a direction to the Irish Stock Exchange on November 4th directing it to swear an affidavit of discovery in relation to any such documentation and to provide the documents to the inquiry.
The judge will then decide whether the documentation is covered by the secrecy obligations contained in the companies act.
Constraint
This constraint would be removed if there were a statutory provision, either specifically excluding the application of section 118 of the Companies Act, or specifically providing that any prohibition or restriction imposed by law in relation to the disclosure of information shall not apply in relation to the disclosure of information to or access to information by a commission of investigation.
The commission has recommended appropriate legislative change to facilitate its work.
Remarkably, the special liquidators of IBRC – Kieran Wallace and Eamonn Richardson of KPMG – furnished the judge with 276 files of documents relating to Siteserv, running to 186,498 pages.
They also asserted a duty of confidentiality over all of these documents.
