Vol. 456 No. 7
25 Mr. O'Malley asked the Minister for Agriculture, Food and Forestry the steps, if any, he proposes to take to recover a sum in excess of £900,000 defrauded from his Department by the Anglo-Irish Beef Processors factory at Rathkeale, County Limerick, between the year 1989 and 1991; the steps, if any, he proposes to take to have the instigators of these frauds identified; and if he will make a statement on the matter. [14679/95]
118 Mr. O'Dea asked the Minister for Agriculture, Food and Forestry his views on whether the State should take all legal steps practicable to seek to recover moneys which have been fraudulently claimed from it; and the steps, if any, he proposes to take to recover moneys which former employees of the Goodman Group have by their own admission fraudulently claimed and obtained from his Department. [14506/95]
I propose to take Questions Nos. 25 and 118 together.
My Department has instituted civil legal proceedings for the recovery of a sum in excess of £900,000 in respect of intervention beef which was misappropriated. The Deputy will be aware that two executives at the plant in question were sentenced by the courts on 5 October having pleaded guilty to conspiracy to defraud. The Department will take all possible steps to seek to recover any moneys which have been fraudulently claimed from it.
What was the figure the Minister mentioned for which he instituted civil proceedings?
A sum of £900,000.
Is the Minister aware that another £900,000 is due to him, arising from similar activities in the cannery of this factory? A sum of approximately £900,000 was fraudulently claimed in the boning hall and as a similar amount from 1990-91 arises from the cannery will the Minister institute proceedings? When did he institute the proceedings for this £900,000? Is interest being claimed as much of this money is outstanding to his Department since 1989? That is six years ago and a large amount of interest is due.
Will the Minister answer the remaining part of my question regarding the steps, if any, he proposes to take to have the instigators of these frauds identified? The two gentlemen convicted the other day on their own pleas of guilty were said, by the prosecution and the judge, not to be the beneficiaries of the fraud. The beneficiaries were the owners of the factory.
Evidence was supplied to the tribunal by a former boning hall manager employed at Rathkeale by AIBP which was corroborated by company records. Information was also uncovered by the Department's control inquiry team which made an unannounced inspection of the premises with the benefit of a search warrant. The Garda Síochána, through the DPP, instituted legal proceedings against three Rathkeale employees, namely the plant manager, the accountant and the supervisor of the boning hall who were charged with conspiracy to defraud. The first two pleaded guilty and were sentenced to six years on 5 October. They were also disqualified from serving as company directors, auditors or managers for the next six years. Each must perform 240 hours of community service. Implementation of the sentence has been adjourned to 4 November 1996 but the judge has not ruled out a requirement that either defendant serve an appropriate portion of sentence. The boning hall supervisor pleaded not guilty and, following court proceedings, the judge directed his acquittal.
In relation to the recovery of funds, the group refused to accept the findings of the beef tribunal with regard to this matter. I have challenged, through their solicitors, a demand for payment of the sum mentioned. Consequently, on the advice of the Office of the Attorney General, the Department has taken steps through the Office of the Chief State Solicitor to institute legal proceedings for the recovery of the funds.
The Goodman group issued a statement on 4 April 1995 which said: "It follows, if it is the case that if any individuals indulged in unacceptable activities in the group's plant in Rathkeale, Goodman International shall recompense the Department for the appropriate loss". I was very disappointed to find, when we pursued this matter of recovery, that we received a solicitor's letter stating they would not pay it. This is why we have instituted legal proceedings.
I do not have information to hand regarding the additional £900,000 in the cannery. The question related to one sum of £900,000 but I will communicate with the Deputy in relation to the cannery.
Will the Minister answer the latter part of my question regarding the steps, if any, he proposes to take to have the instigators of these frauds identified?
The judge and the prosecution both made it clear that the two men who pleaded guilty were not the instigators, that they did not get one penny from this prolonged fraud over a period of two years and that the beneficiaries were the owners of the factory. Information had to be sent to an address in Ravensdale, Dundalk, County Louth, each week showing how much was got illegally out of the intervention line and the intervention system.
The judge and the superintendent both found that the two defendants were only doing what they were told to do by their superiors in County Louth and if they had not done it they would be expendable. Therefore, they felt they had no option. In those circumstances will the Minister tell the House what steps he proposes to take to have the instigators of this very large and serious fraud prosecuted and in particular whether he will ask the Director of Public Prosecutions to make an application to the court under section 160 of the Companies Act, 1990, to have the top management of this group——
The Deputy's question is very long.
——disqualified and not just these very junior employees in County Limerick?
I acknowledge the Deputy's point that it is questionable that relatively low level employees would bear full culpability for clear wrongdoings. My Department will consult the Chief State Solicitor's office and the Director of Public Prosecutions as appropriate to see if further prosecutions or legal proceedings can be initiated at a further or higher level in the company.
Perhaps we could deal briefly with the final priority question. Our time is all but exhausted.
