Vol. 489 No. 2
24 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will use her powers under section 8 of the Companies Act, 1990 to petition the High Court to appoint an inspector to examine the use of the Clerical Medical International Financial Instrument by National Irish Bank. [7668/98]
42 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason she has not availed of the powers available to her under section 8 (1) (a) of the Companies Act, 1990 to seek the appointment of an inspector to carry out an investigation into the affairs of National Irish Bank; and if she will make a statement on the matter. [7580/98]
I propose to take Questions Nos. 24 and 42 together.
The Deputies will be aware that I appointed an authorised officer, on Monday last, 23 March, under section 59 of the Insurance Act, 1989, for the purpose of obtaining further information from National Irish Bank in order to ascertain whether where relevant the operations of the National Irish Bank and its associated companies meet the requirements of the Insurance Acts and regulations and whether breaches of that legislation, may have occurred. I have asked the authorised officer to present his report to me within two months. The House will also be aware of the ongoing investigations being conducted, on behalf of the Revenue Commissioners, concerning allegations of tax evasion and by the central bank, into the operations of the bank.
The decision to appoint the authorised officer, follows ministerial and departmental inquiries, from National Irish Bank and extensive and ongoing consultations between the Tanaiste and myself our departmental officials, the Chief State Solicitor's Office and the Attorney General's office, over the past seven weeks. The Attorney General's office has engaged a counsel to advise, on the basis of the information provided, in response to our inquiries, whether breaches of insurance law, may have occurred, justifying the submission of the matter to the Director of Public Prosecutions.
The results of counsel's examination of issues, raised by our Department and the Chief State Solicitor's Office indicated, having regard to the complexity of the legislation involved, the need to obtain further detailed information, from National Irish Bank. When I studied the initial information and the legal advice, it became clear that, in order to obtain the further information prescribed by counsel, the appointment of an authorised officer with statutory powers was necessary, notwithstanding the co-operation of National Irish Bank in the preliminary written inquiries.
I believe that the appointment of an authorised officer to examine the NIB-CMI insurance arrangements was an appropriate response given the information available to us last Monday. I believe that we require more information to address the insurance issues and it is my intention, as of now, that the authorised officer should continue his work.
