Vol. 495 No. 7
46 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has considered an inquiry into the alleged irregular practices at Allied Irish Bank plc under section 9 of the Companies Acts, 1963 to 1990. [21124/98]
The Revenue Commissioners and the Committee of Public Accounts are carrying out extensive investigations into alleged irregular practices at the AIB concerning the non-payment of DIRT. I am satisfied that these are the most appropriate means of addressing these serious allegations. I will, however be closely monitoring the progress of these investigations. Since the central focus of the allegations relates to issues of taxation for which I have no statutory responsibility, it would be inappropriate for me to invoke my powers under the Companies Acts. Nonetheless, compliance with statutory obligations under the various codes of law applying in this jurisdiction is a matter of continuing concern to me. In that regard, and in co-operation with my colleague, the Minister for Finance, we announced on 22 October the establishment of a single regulatory authority for the financial services sector. We also announced the establishment of an implementation group to progress the necessary work. The group will report to both the Minister for Finance and myself by the end of February 1999.
Does the Minister accept that one of her major functions is to regulate standards of behaviour and probity in the banks? Given the evidence in the public domain that there were 53,000 bogus non-resident accounts in the late 1980s and early 1990s and that there was collaboration and collusion by the AIB and possibly other banks in the promotion of such accounts, is it not appropriate for the Minister to use her powers to institute an investigation? Does she accept that the Central Bank has failed in its remit in the regulation of banks and that what she is now doing is removing this power from it even though from January it will be a branch of the European Central Bank?
The Deputy is incorrect, I do not have a role in relation to the banking institutions. I do, however, have responsibilities in relation to the insurance industry, credit unions and friendly societies. On the investigations under the Companies Acts, the Minister's powers are specific. In the case of the AIB what has arisen is a tax matter. It is, therefore, the responsibility of another Minister, the Revenue Commissioners and the Central Bank as the regulator of the banks. What came to light in the case of the NIB was an insurance-related matter. That is the reason we acted initially under the insurance Acts and subsequently under the companies Acts.
The situation in AIB is very different. Different things may emerge but what has emerged to date is concerned only with taxation and Revenue matters. The most appropriate fora to investigate these matters are the Revenue Commission, the Committee of Public Accounts and, when new powers have been given to him, the office of the Comptroller and Auditor General. It would not be appropriate for me to interfere at this point since these are matters for other bodies.
The Minister said she would keep a watching brief to see if it would be necessary for her to intervene under the terms of Section 9 of the Companies Act, 1963. If there is gross misbehaviour by a company in its administration does the Minister not have a role?
Many of our colleagues in the media and elsewhere have said that prima facie evidence of misbehaviour by a company exists. Is the Minister prepared to use such evidence to make a formal complaint to the Garda bureau of fraud investigation on behalf of this House. She is responsible, under the Companies Acts, for misbehaviour by companies. Will she make a formal complaint on behalf of the House and allow the Garda bureau of fraud investigation pursue its own investigation of this matter which Superintendent Glackin has indicated to me he is prepared to do?
The powers I have under section 19 of the Companies Act relate to breaches of the Companies Acts. Recently a person sent me documentation in relation to AIB and I forwarded that to the Garda Síochána, the Central Bank, the Revenue Commissioners and others. The Deputy can be assured that if information comes my way I will pass it to the appropriate authorities. No one can say I have been shy about initiating inquiries as the next question will indicate. I have been involved in 13 inquiries since the Government took office. I am not reluctant to initiate inquiries but I must be sure that the most appropriate mechanism is found to investigate serious matters which come into the public domain or of which Ministers become aware. The most appropriate way to investigate the AIB matter is to use the Committee of Public Accounts, the Comptroller and Auditor General and the Revenue Commissioners. I do not believe there is an appropriate role at this point for the Minister.
