Dáil Éireann debate -
Tuesday, 25 Mar 2003

Vol. 563 No. 4

Written Answers - Departmental Investigations.

Emmet Stagg

Question:

115 Mr. Stagg asked the Tánaiste and Minister for Enterprise, Trade and Employment the position in regard to each of the inquiries being car ried 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. [8134/03]

Emmet Stagg

Question:

127 Mr. Stagg 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. [8135/03]

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

I propose to take Questions Nos. 115 and 127 together.

A total of 16 investigations into company law matters have been initiated by me since I first took up office. 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 inspectors appointed to Ansbacher (Cayman) Limited presented their report to the High Court on 10 June 2002. The report was subsequently published and has been passed to the Director of Public Prosecutions.

Section 8 inquiries into the affairs of National Irish Bank Ltd and National Irish Bank Financial Services Limited are continuing. I understand that the final report is likely to be submitted to the High Court towards the end of 2003. One investigation under section 14 of the Companies Act 1990 was completed in 1998. The report on this has been passed to the DPP.

Eleven investigations were initiated by me under section 19 of the Companies Act 1990. Six of these have been concluded. Of the six investigations completed, two of the reports were passed to the DPP. A number of summary prosecutions have since been successfully concluded in one case. 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. A further report was recently completed.

Three investigations under section 19 are ongoing. The report in respect of one of these investigations is 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. These inquiries are the responsibility of the Director of Corporate Enforcement.

One investigation was undertaken under section 59 of the Insurance Act 1989. The report on this has been referred to the DPP 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 €9.76 million. This amount does not include the salary costs of Civil Service staff working on a number of these investigations or the legal costs which are primarily being borne by the Vote of the Chief State Solicitor. Most of this €9.76 million derives from the costs to date of the High Court inspectors appointed under section 8 – National Irish Bank, €4.9 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. The issue of recovering costs in relation to the Ansbacher inquiry is now before the courts. Section 19 as originally enacted did not provide for the recoupment of costs. This changed with the enactment of the Company Law Enforcement Bill 2001.