Council could lose €7m due to liquidation of IBRC

by Gazette Reporter

Fingal County Council could lose over €7 million worth of developer bonds following the liquidation of the Irish Bank Resolution Corporation (IBRC).
It has been revealed that €7,517,371 of developer bonds were held at the former Anglo Irish Bank. However, because of the government’s decision to liquidate the bank, these bonds could effectively be gone, leaving the council without bonds for a number of estates across the county.
Bonds are provided by developers as security that works will be completed in accordance with planning permission conditions set down by local authorities.
The figures were revealed following a motion by Councillor David McGuinness asking for a report on developer bonds from all housing estates in the Mulhuddart/Castleknock wards, not currently taken in charge by the council, and held with the IBRC.
In a report to councillors, Fingal County Council listed 27 estates throughout the county that have developer bonds held in the liquidated bank and how much bond money is being held for each estate.
Of those listed, seven of these are in the Dublin 15 area. They include Archers Wood – with a bond of €270k; Allendale Square – bonds of €328k and another for €25k; Ravenswood just over €53k; Beechfield – €788k; Allendale €700k and an estate in Tyrrelstown has a bond with the liquidated bank for €60k.
Two of these estates, Ravenswood and Beechfield, have been taken-in-charge by the council, one (Tyrrelstown) has partly been taken-in-charge by the council, while the remaining four estates are still owned by the developer.
Reacting to the figures, Cllr McGuinness said while some senior bond holders have been paid in full for holding bonds in Irish financial institutions, “the ordinary residents of Fingal will be shocked to discover this situation”.
“The legal process of drawing down developer bonds is completely undermined since the IBRC no longer exists. Fingal have nobody to take to court should a developer not comply with planning permission. As creditors queue to access funds from the liquidated IBRC, the fear is that our communities will join [follow] credit unions and pensioners who have been burned to the tune of millions part of this liquidation process.
“I have raised this very serious issue with Fianna Fail finance spokesperson Michael McGrath. Information surrounding the liquidation of IBRC has been cloaked with secrecy and this information obtained today has showed how significant the details behind the procedure are,” he added.
Socialist Party councillor Ruth Coppinger said it was effectively “residents’ money” and that many estates in need of work could use this money to “fix” a lot of things.
“In a lot of cases these companies have gone out of business, for example, Archers Wood, but there are significant problems such as flooding at the car park, lifts and other things – residents could do with that money to get things fixed.”
During the meeting a spokesperson for Fingal County Council said the LGMA (Local Government Management Authority) is seeking clarification on this matter and further details will be brought to local representatives at the next full county council meeting.
The spokesperson went on to say the bonds are held at a bank that has been liquidated.
“We don’t hold the bonds. They were lodged with Anglo, that’s now been liquidated – that’s the worrying issue,” the spokesperson added.

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