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Dáil Éireann díospóireacht -
Wednesday, 26 Nov 1997

Vol. 483 No. 4

Adjournment Debate. - Fraudulent Use of Name of Organisation.

My former colleague in this House and former Minister of State, Ms Joan Burton, brought this matter to my attention. It was given some publicity in the media a couple of weeks ago when the EU Court of Auditors reported, unfavourably in many respects, on the disbursal of funding and the use of funding here. The former Deputy and Minister of State was amazed that an area she has represented for almost five years, namely, the district of Lucan, should somehow have been caught up in an apparent new beef scam and in a litany of unfortunate events which have gone on in Irish trade for far too long. I am calling now on the Minister for Justice, Equality and Law Reform and on the Minister for Enterprise, Trade and Employment, to bring in the National Bureau of Fraud Investigation to examine all the circumstances of this matter and report to the Director of Public Prosecutions.

The EU Court of Auditors discovered that a 455 tonne consignment of Irish beef which was originally destined for Egypt ended up travelling around Europe and perhaps part of Africa for many months before finally reaching the Congo Republic. This consignment was accompanied by a false and forged certificate of origin and the auditors drew attention to it in the context of illegal claims for export refunds. The certificate of origin was endorsed by a non-existent chamber of commerce in Lucan, County Dublin, with an accompanying signature. The Minister for Enterprise, Trade and Employment, Deputy Mary Harney, said over the weekend that she was putting in an inspector to examine this matter urgently. She needs to go much further. We need a Garda inquiry into why the good name of the business community of Lucan was impugned in this way.

It is also extraordinary that a French meat exporting company, Sogeviandes, should have picked on this district of County Dublin to validate their unlawful certificate in this way. The former Deputy and Minister, Ms Burton, I and everyone else in this House feel that the Lucan business community and their public representatives should be rightly outraged by this discovery at the European Court of Auditors.

The Department of Agriculture and Food has made the usual lukewarm, almost lackadaisical, response to the disclosure of this matter by the EU Court of Auditors, saying basically that it did not affect the beef, etc. It affects the reputation of the village of Lucan, now grown into a huge and important district on the west side of Dublin. There has been massive development there of residential housing and business over the past 20 years and it is deplorable that its reputation has been impugned in this way.

We had the famous beef tribunal, a number of years ago in which many investigations took place in front of lawyers about tax evasion, damaging behaviour in the meat plants of Ireland, with a damaging outcome for our meat exports, and this was accompanied by the huge scandal of massive fees for the legal profession. We ended up none the wiser and now we have somebody using the name of the village of Lucan in this illegal scam.

The Committee of Public Accounts, of which I was proud to be a member during the course of the 27th Dáil, tried to re-examine the territory covered by the beef tribunal. I remember important contributions by Deputies O'Malley and Rabbitte to our discussions over those four and a half years. We too ran into a kind of cul de sac. What I am asking this evening is that the Minister for Enterprise, Trade and Employment, Deputy Harney, take responsibility on a day when one of her junior Ministers had to come in here and defend the indefensible, voting against his own Bill. She should take this matter to the National Bureau of Fraud Investigation to examine it and to see why on earth the business community of Lucan was impugned in this outrageous way.

I am here to reply on behalf of the Tánaiste who is unable to be present because of her attendance at a function relating to her office.

Chambers of commerce play a valuable role in certifying the origin of goods. Certificates of origin are not often needed because most trade is conducted on the basis of declarations made by exporters. However, certificates of origin are sometimes required by the authorities in the importing country. In those cases it is the practice in many countries, including Ireland, for a list of chambers of commerce to be authorised to issue certificates of origin to an exporter. This system works to the satisfaction of exporters. It is also regarded as satisfactory by importing authorities.

One of the conditions which must be met before a chamber of commerce is authorised by the Minister for Enterprise, Trade and Employment to issue certificates of origin is that it must be affiliated to the Chambers of Commerce of Ireland. In October 1994, a person or entity purporting to be the Lucan Chamber of Commerce issued a forged certificate of origin to a French company based in Malahide for a shipment of beef for export to Egypt. This body was not affiliated to the Chambers of Commerce of Ireland and was not authorised by the Minister to issue certificates of origin. The shipment was rejected in Egypt and was re-imported to the Community via Corinth, Greece. It was subsequently re-exported from France to the Congo.

This information was revealed in the recently published report of the European Court of Auditors. The case was examined as soon as the Department was informed of it. There is no evidence from the initial investigation that the substantive information contained in the certificate was incorrect. Furthermore, the Office of the Comptroller and Auditor General has confirmed that there was no abuse of the EU export refund system in connection with the consignment. Certificates of origin are not used at any stage to demonstrate eligibility for export refunds nor to validate export refund claims. They are never submitted to nor seen by the paying agency. However, there remains an irregularity in that a certificate of origin was issued by a body which was not authorised by the Minister to issue such certificates. This is a matter of some concern to the Minister — not least because it is essential to maintain the high standing of the system whereby Irish certificates of origin are issued by authorised chambers of commerce.

In the circumstances, the Garda Fraud Squad was asked by the Minister to investigate the incident with a view to considering whether a prosecution would be justified under the Forgery Act. The Garda Síochána has already made some progress in its investigation and it will report back as soon as possible. The Minister is also awaiting the advice of the Attorney General on what other legal steps may be available.

In summary let me emphasise that there does not appear to have been any substantive abuse in this case of the EU export refund scheme. On the other hand, the Minister is determined to protect the integrity and reputation of the system whereby chambers of commerce are authorised to issue Irish certificates of origin. For this reason, she has already authorised a Garda investigation in order to determine whether a prosecution would be justified under the Forgery Act. In addition, she has consulted the Attorney General in order to ascertain whether any other legal steps would be appropriate. As soon as the Garda report has been received, the Minister will take whatever action is necessary in order to maintain the integrity of the system whereby certificates of origin are issued in Ireland. I hope my reply goes some way to alleviating the Deputy's concerns. I thank him for raising the matter.

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