Inspectors appointed by the High Court found no breaches of company law in their investigation into an alleged data breach and governance issues at the former Independent News and Media Group.
In 2018, then High Court president Justice Peter Kelly appointed SC Seán Gillane and British solicitor Richard Fleck to investigate the alleged data breach of company data at the former INM group along with other governance issues.
The inspectors were appointed following an application made by the Office of the Director of Corporate Enforcement (ODCE) as it had identified issues that in its assessment warranted further investigation.
The report found that technical breaches of the Data Protection Acts by INM had been established and inside information was disclosed to former main shareholder of INM Denis O’Brien by former chairman of INM Leslie Buckley.
However, the report states that “such matters do not, in our view, amount to the affairs of INM being conducted in breach of the provisions of section 748 of the Companies Act”.
In relation to communications by Mr Buckley to Mr O’Brien containing confidential and or inside information, it said: “The information was not disclosed by Mr Buckley for an improper purpose and further, that the information disclosed was not misused by Mr O’Brien.”
Former chairman of INM Leslie Buckley said he welcomes the publication of the inspectors’ report.
“I am pleased that the Inspectors’ report contains no findings of dishonesty against me during my time as Chairman of INM and demonstrates that I acted with integrity in the interests of all shareholders,” Mr Buckley said in a statement.
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He said that the allegations at the centre of the investigation were based on the false premise that he had sought to promote Denis O’Brien’s interests to the detriment of other shareholders.
“I welcome the rejection of these allegations by the inspectors,” Mr Buckley said.
He said he noted and accepted the inspectors’ criticism of him in respect of certain governance issues.
“As regards the Inspectors’ findings that I shared certain inside information with Mr O’Brien, with respect, I believe the inspectors’ conclusions in that regard are not supported by the expert evidence heard by the inspectors in what is a highly specialist area,” he said.
“Furthermore, the relevant information that I shared did not relate to INM’s financial performance. Instead, it related to serious allegations that were made against me by the CEO concerning Mr O’Brien arising from protected disclosures,” Mr Buckley added.
Mr O’Brien also said he welcomed the publication of the report.
“Following almost six years of investigations, the inspectors have clearly established that the affairs of INM were not being conducted in breach of the Companies Act, as was alleged,” Mr O’Brien said in a statement.
The report was also welcomed by Mediahuis, which acquired INM in 2019.
In a statement, Mediahuis Ireland Group said it is pleased that, after an extensive and detailed investigation, the inspectors found that the affairs of the company were not conducted unlawfully.
“The issues considered by the inspectors relate to events between 2014 and 2016, several years before Mediahuis acquired INM in 2019,” the company said.
“Those issues led to considerable publicity and commentary. We acknowledge that the entire matter has been difficult for the company’s hard-working and diligent staff,” it added.
The Corporate Enforcement Authority (CEA), the successor to the ODCE, said it will now conduct a detailed examination of the report, including the inspectors’ analyses, findings, and conclusions.
“Until that examination has concluded and the CEA has determined what, if any, action is warranted on foot of the report’s contents, it would be inappropriate for the CEA to make any further comment,” it said.
Additional reporting Brian O’Donovan