Dáil Éireann díospóireacht -
Thursday, 14 Dec 1995

Vol. 459 No. 8

Written Answers. - Investment Company Liquidation.

Tony Gregory

Ceist:

132 Mr. Gregory asked the Minister for Enterprise and Employment if he has completed his review of the circumstances surrounding the liquidation of International Investments Ltd; if he will give details of his conclusions-findings; and if he will make a statement on the matter. [19022/95]

Minister for Enterprise and Employment (Mr. R. Bruton)

I assume the Deputy is referring to the case of International Investments Limited, a Gibraltar-registered banking company which, by order of the Gibraltar Supreme Court, has been in liquidation since 1984.

Earlier this year, I ordered a review of my Department's files relating to the company. There have been many allegations over the years about irregularities in the affairs of the company, which was originally incorporated in Gibraltar in 1976 and essentially sprang from an Industrial and Provident Society registered by the Registrar of Friendly Societies in 1975. Many of the investors were from Northern Ireland and the State. The matter had been the subject of several reviews by my predecessors in my Department and investigations by the Garda, the RUC and the official Gibraltar liquidators. The Garda referred the case to the Director of Public Prosecutions who directed that there was insufficient evidence to mount a prosecution.

This is a thoroughly regrettable case and my concerns, and those of others represented to me, impelled me to commence the review. This was detailed and exhaustive and, consumed much time and effort particularly in view of the length of time since the contentious events took place, some 17 or so years ago. Representations seeking the appointment of an inspector have been made to various Governments since 1992. During the course of the review, I have been in written and verbal contact with many people about various aspects of the case including, in particular, the Minister for Justice, the Tánaiste and Minister for Foreign Affairs, the Minister for Transport, Energy and Communications and the Attorney General. The Attorney General has given me detailed advice. I also met some creditors of the company in June 1995 when they reiterated their request for the appointment of an official inspector under the Irish company law code.

Despite these efforts, no new factors have been substantiated to me either in the course of the review or in representations I have received since my appointment in the present Government. Material submitted to me has been carefully studied and advice taken thereon. I have formed the view, having regard to the advice of the Attorney General and the results of the work carried out in various fora in reviewing the case, that no useful purpose would be achieved by pursuing the matter any further in so far as matters under my aegis are concerned. The nub of the advice I received is that it is doubtful whether the courts would be satisfied that any worthwhile result, such as the orderly winding-up or recovery and distribution of property, would be achieved by pursuing the matter in the context of the Irish company law code. I was also conscious that effective action and redress would be difficult with the trail having gone cold with the significant passage of time since the contentious events took place. Accordingly, with considerable reluctance and regret, I have decided to conclude my review.

It is a matter for those affected, but I would counsel that matters that might arise in the official liquidation of the company should be brought to the attention of the Gibraltar authorities, if that has not already been done. As regards the allegations of fraudulent activities in the Irish jurisdiction, any new material arising should be forwarded urgently to the Garda Fraud Investigation Bureau. Clearly, any new evidence would need to be compelling, in view of the earlier decisions by the Director of Public Prosecutions not to pursue any prosecutions. I have been informed that the Garda is fully prepared to pursue any leads that might arise and that it has been in touch with the official liquidator in Gibraltar and the police authorities in Northern Ireland, which have been pursuing their own leads.