Allegations have been made in the Dáil that a property developer with large debts to IBRC was given a bridging loan by the bank following an assurance by businessman Denis O'Brien.
The claims were made by Social Democrats TD Catherine Murphy who said that in 2012 Paddy McKillen was heavily indebted and sought a bridging loan of €5m from the Irish Bank Resolution Corporation.
She claimed that Mr O'Brien said he would provide IBRC with a guarantee to support Mr McKillen's request.
"Astoundingly, despite serious concerns from some about Mr McKillen's ability to repay the amounts he owed IBRC - far in excess of €5m - the bridging facility was granted.
"Essentially, a man with huge debts to IBRC was granted a loan from the IBRC on the guarantee of another man who owed significant sums to IBRC while there were questions over both men's financial ability to fulfill original loan agreements with IBRC," Deputy Murphy said.
She also alleged that those who made the decision were directly connected with the Siteserv deal which proved to be hugely controversial.
Deputy Murphy also told the debate on the Commission of Investigation (IBRC) Bill 2016 that State-owned AIB provided Mr O'Brien with a loan to purchase Siteserv.
"It is interesting to note that the AIB group chief officer at the time the loan was advanced went on after leaving AIB to join the boards of Siteserv, Topaz and the Beacon Hospital, all owned by Mr Denis O'Brien," she said.
Deputy Murphy said that there may be perfectly legitimate answers to questions arising from these matters but the questions need to be asked.
Later in her address, the deputy raised the issue of media ownership adding that the "chilling effect of powerful individuals is a problem in this country and certainly it has appeared to be the case that the thicker the wallet the thinner the skin."
Added powers for IBRC investigation
Under the Commission of Investigation (Irish Bank Resolution Corporation) Bill 2016, the Commission has been given extra powers to address issues raised about the confidentiality of some documents relating to IBRC.
The Commission will also be given the same powers, rights and privilege of the High Court or a High Court judge in relation to its probe into IBRC.
The bill will also enable the Commission to seek the direction of the High Court in relation to any of its functions and to refer legal matters relating to its functions to the court.
It also allows the Commission to sit and report in divisions given the extensive nature of its investigation.
In a statement, the Department of Justice said the legislation will be enacted as soon as possible. It added that Taoiseach Enda Kenny had consulted with the Opposition and the Commission.
The Commission of Investigation was set up to investigate transactions and activities of IBRC between January 2009 and February 2013.
It is looking at transactions that resulted in capital losses to IBRC of at least €10m or which have been identified by the Commission as giving rise or likely to give rise to potential public concern.
Minister of State for Justice David Stanton said he is bringing the bill forward "to give additional powers to the Commission of Investigation into Irish Bank Resolution Corporation.
"These provisions are necessary, given the nature of the investigation involved, to ensure that the Commission can effectively perform its functions," he said.
At the conclusion of his speech, Mr Stanton outlined that the Siteserv transaction would be made a priority following the concerns raised about it in the Dáil.
He said: "This is a pragmatic approach which will allow the Commission to focus its efforts in the first phase.
"The Government intends to brief the Opposition leaders on these revised terms of reference next week, and a draft Order with the revised Terms of Reference will then need to be approved by both Houses of the Oireachtas, hopefully before the summer recess."
The debate concluded at lunchtime and will now go forward to be discussed at committee stage.
