Vol. 576 No. 5
65 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 has been removed from the other parties involved; and if she will make a statement on the matter. [29930/03]
67 Mr. Penrose 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. [29926/03]
I propose to take Questions Nos. 65 and 67 together.
Some 16 investigations into company law matters have been initiated by me since I took office as Minister for Enterprise, Trade and Employment. In respect of three cases, 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 which was subsequently published has been passed to the Director of Public Prosecutions.
Section 8 inquiries into the affairs of National Irish Bank Limited and National Irish Bank Financial Services Limited are continuing. A further interim report was submitted to the High Court in July 2003. An investigation under section 14 of the Companies Act 1990 was completed in 1998 and the report has been passed to the DPP.
Some 11 investigations were initiated by me under section 19 of the Companies Act 1990 of which six have been concluded. Of the six investigations completed, two reports have been 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 a fourth report was passed to the relevant High Court inspectors. One report was completed in September 2002 and a further report was completed in March 2003. Both reports have been referred to the Director of Corporate Enforcement.
Some three investigations under section 19 are ongoing and the authorised officer is working towards completing reports of the investigations by mid-2004. Two investigations were held up in legal appeals. These inquiries are now the responsibility of the Director of Corporate Enforcement. An investigation was undertaken under section 59 of the Insurance Act 1989 and a report in this regard has been referred to the DPP and to the inspectors undertaking the section 8 investigation of the company.
The costs incurred since 1997 on company investigations initiated by or on behalf of my Department currently amount to approximately €10.3 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 €10.3 million derives from the costs to date of the High Court inspectors appointed under section 8; €5.3 million in the case of National Irish Bank Limited-National Irish Bank Financial Services Limited and €3.5 million in the case of Ansbacher (Cayman) Limited.
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 the Ansbacher inquiry is now before the courts. Section 19 as originally enacted did not provide for the recoupment of costs. This has changed with the enactment of the Company Law Enforcement Act 2001.
Will the Tanáiste accept that ongoing inquiries have, after seven years, become a saga? What prosecutions have ensued and how many individuals have been charged on foot of such prosecutions? Does she believe that expenditure by her Department of €10 million plus the costs incurred by the Civil Service and the significant legal costs which fall to another Department for payment, should result in a clear benefit to the public by way of identified and published results?
The Tanáiste referred to a few specific investigations and said a number had been referred to the DPP. An investigation under section 14 of the Companies Act completed in 1998 has been passed to the DPP. Are these reports merely lodged with the Attorney General or does the Tanáiste have any dialogue with him in this regard? Are we to expect no result to ensue from these investigations?
Substantial tax revenues have been recovered on foot of many of the inquiries.
How many?
That is a matter for the Revenue Commissioners who have already indicated that substantial moneys have been recouped to the State on foot of the National Irish Investment Bank inquiry and others.
Under the corporate enforcement mechanism, we introduced legislation establishing a new independent officer to head the properly resourced office before completion of the inquiries as a result of what was coming through from them. He is having considerable success. I am sure the Deputy is aware he is an independent office holder and that he has been involved in a number of high profile prosecutions in recent times.
On prosecutions concluded during my watch, there were a number of prosecutions following the investigation into Garuda Limited. We do not have any way of knowing the DPP's thinking on matters referred to him. He is very active these days. I know the reports are not gathering dust in his office. I am quite certain that if action can be taken on them, it will be taken. A number of inquiries remain outstanding. I understand a report on the NIB inquiry, one of the more significant ones, is due shortly. The reason such inquiries take so long and cost so much relates to the ongoing legal battles involved. Inquiries under section 19 seem better able to produce the type of preliminary results which will allow the Director of Corporate Enforcement to initiate activity. Responsibility for inquiries has been taken out of the political system and passed to an independent office holder and that is how such matters should be dealt with.
I genuinely believe we have received a great deal of value for money and that there has been a change in corporate behaviour as a result of inquiries in this area. Many changes have resulted from activities in other places, particularly in some of the tribunals of inquiry, such as the Dunne inquiry which dealt with payments to politicians set up by the Government of which the Deputy's party was a member. There are so many inquiries I cannot remember the name. The inquiry dealing with payments to Ben Dunne – the McCracken inquiry – led to many inquiries which have borne a lot of fruit and have been very successful.
I agree with much that the Tanáiste said. How many investigations are currently outstanding and when will they be completed? Can the Tanáiste tell us the number of people who have been successfully prosecuted subsequent to inquiries initiated on her watch?
Prosecutions in terms of inquiries initiated by my Department relate, in the main, to the Garuda investigation. The Director of Corporate Enforcement has since taken over many of the functions and reports in that regard. I can obtain the relevant information for the Deputy.
A number of inquiries remain outstanding; two relate to National Irish Bank Limited and National Irish Bank Financial Services Limited. I understand a final report in that regard is due shortly. The official in my Department with responsibility for the inquiries at the time the new office was established is currently working on reports relating to three investigations. It is hoped they will be completed by next summer.
