Dáil Éireann debate -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Departmental Inquiries.

Pat Rabbitte

Question:

159 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment the position in regard to each of the inquiries being carried out by or on behalf of her Department; the projected date for the conclusion of each such investigation; the inquiries in respect of which reports have been referred to the DPP; and if she will make a statement on the matter. [4447/03]

Ruairí Quinn

Question:

166 Mr. Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment the total costs incurred by the State, at the latest date for which figures are available, arising from the various inquiries instigated by or on behalf of her Department; the element of these costs which have been recovered from any of the other parties involved; and if she will make a statement on the matter. [4448/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

I propose to take Questions Nos. 159 and 166 together.

Sixteen investigations into company law related matters have been initiated by me since I came into office in my previous term as Minister for Enterprise, Trade and Employment. In respect of three of these, the High Court appointed, on an application by me, inspectors under section 8 of the Companies Act 1990. The High Court Inspectors appointed to Ansbacher (Cayman) Limited presented their report to the High Court on Monday 10 June 2002.

The National Irish Bank Limited and National Irish Bank Financial Services Limited section 8 inquiries are continuing. A further interim report was presented to the High Court on 24 July 2002. It is now anticipated the final report will be submitted to the High Court towards the end of 2003. As in the case of Ansbacher (Cayman) Limited, the question of whether the reports are published is entirely a matter for the High Court. The High Court ordered the publication of the Ansbacher Report. One investigation under section 14 of the Companies Act 1990 was completed in 1998. The report on this has been passed to the Director of Public Prosecutions. Eleven investigations were initiated by me under section 19 of the Companies Act 1990. Five of these have been concluded. Of the five investigations completed, two of the reports were passed to the DPP. The file in one case was returned and a number of summary prosecutions have since been successfully concluded. One report provided an input into the successful application to the High Court for the appointment of inspectors under section 8 while the fourth report was passed to the relevant High Court inspectors. One report was completed in September 2002 and has been referred to the Director of Corporate Enforcement. My Depart ment is considering whether this report should be referred to other authorities. Four investigations under section 19 are ongoing. Reports in respect of two of these four investigations are at a very advanced stage of completion.

Two investigations were held up in legal appeals, on which a judgment was delivered on 5 June 2002. The High Court ruled on certain constitutional issues which had been referred back to the High Court by the Supreme Court. It is a matter for the Director of Corporate Enforcement to decide how to proceed on these latter investigations. One investigation was undertaken under section 59 of the Insurance Act 1989. This report has been completed and referred to the Director of Public Prosecutions as well as to the inspectors undertaking the section 8 investigation into that company. The costs incurred since 1997 on company investigations initiated by or on behalf of my Department currently amount to €9.73 million. This amount does not include the salary costs of civil service staff working on a number of these investigations. Similarly, the major proportion of the legal costs relating to the investigations is being borne by the Vote of the Chief State Solicitor. Most of this €9.73 million derives from the costs to date of the High Court inspectors appointed under section 8 – National Irish Bank €4.88 million and Ansbacher €3.5 million.

The question of recovering costs from the section 8 investigations does not arise until such time as the inspectors complete their investigations. Section 19 as originally enacted did not provide for the recoupment of costs. This has now changed with the enactment of the Company Law Enforcement Act 2001. In respect of the Ansbacher investigation, the Minister for Justice presented a motion to the High Court in July 2002 seeking to have Ansbacher and seven other companies dealt with in the inspectors' report made liable for the costs of the investigation. Consideration of this motion is ongoing before the High Court.