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Independent review to scrutinise decision not to sue KPMG

Sinn Fein finance spokesman urges swift action to ensure statute of limitations not activated.

Image: Sasko Lazarov/Photocall Ireland

SINN FEIN FINANCE spokesman Pearse Doherty has “cautiously welcomed” an independent review into the decision not to sue the former auditors of Irish Nationwide Building Society.

The review was announced by KPMG, who acted as auditors of Irish Nationwide and are now also acting as special liquidators of the Irish Banking Resolution Corporation (IBRC), which was formed from a merger of Anglo Irish Bank and Irish Nationwide.

Doherty has previously criticised the appointment of KPMG to act as liquidators over IBRC, saying that they had a conflict of interest as they had previously acted as auditors of Irish Nationwide.

The review announced today will focus on legal advice given by McCann FitzGerald which said that KPMG should not be included in a series of legal actions against former executives of Irish Nationwide, despite their role as auditor of the building society.

Basically, this means the external reviewer will examine the advice given by McCann FitzGerald to IBRC that KPMG should not be included in lawsuits relating to alleged malpractice at Irish Nationwide.

The announcement of the review will be seen as a step by KPMG to address the issue of its alleged conflict of interest.

Pressure

Doherty said that the announcement was “overdue but welcome”, and urged swift action to ensure that the statue of limitations is not activated in relation to the issue.

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He continued:

The special liquidators have been forced to take this route due to pressure from myself and some others. The decision raises questions once more about the suitability of KPMG to carry out the role of special liquidators at IBRC given their history at Irish Nationwide.

KPMG have said that they will make the advice of the external reviewer, Eugene F Collins solicitors, public as soon as it becomes available.

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About the author:

Jack Horgan-Jones

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