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Company Investigations.

Dáil Éireann Debate, Thursday - 14 October 2004

Thursday, 14 October 2004

Ceisteanna (79, 80)

Michael Ring

Ceist:

79 Mr. Ring asked the Minister for Enterprise, Trade and Employment the person who was involved in the investigation by his Department into a company (details supplied) including details of members of the legal profession; the amount these persons have been paid on an individual basis; the expenses they have received; and other costs in this investigation. [24941/04]

Amharc ar fhreagra

Freagraí scríofa

The investigation in question is one of three investigations under section 19 of the Companies Act 1990 remaining to be concluded. The investigations are being carried out by an official of my Department, appointed as an authorised officer under section 19. He is being assisted by other departmental staff. The authorised officer is further assisted by a legal adviser as required. The authorised officer and the departmental staff are paid their Civil Service salaries. In the most recent 12 months an amount of €92,263, inclusive of VAT of €16,012.50, was paid in respect of legal advice to the legal adviser assisting the authorised officer. In the same period an amount of €7,388.44 was paid to a law firm based outside this jurisdiction for work carried out on behalf of the authorised officer.

The total costs incurred since 1997 on the 16 company investigations initiated by or on behalf of my Department currently amount to approximately €10.8 million, of which approximately €1.6 million was spent on section 19 investigations, including the three outstanding section 19 investigations. 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. Costs incurred by the authorised officer relate mainly to legal advice and stenographer fees.

Michael Ring

Ceist:

80 Mr. Ring asked the Minister for Enterprise, Trade and Employment if an investigation by his Department into a company (details supplied) is complete; if so, when it will be published; and when the witnesses who had to appear will be reimbursed for their legal costs. [24942/04]

Amharc ar fhreagra

The investigation in question is one of three investigations under section 19 of the Companies Act 1990 remaining to be concluded. The authorised officer has been directed by my predecessor to cease investigative work and to commence writing up his reports with a view to facilitating appropriate follow up action as soon as possible by the relevant authorities. My Department is currently in discussion with the authorised officer regarding an updated timetable for the completion of these investigations.

Reports of investigations under section 19 of the Companies Act 1990 are not published. Section 21 of the 1990 Act provides that the information obtained under section 19 may be disclosed only in certain circumstances, for example, where disclosure is necessary for further investigation or for the purposes of a prosecution, for the purpose of taking action to disqualify a person from acting as an officer of a company, for assessing a person's tax liability, in order to assist a tribunal of inquiry or where the information would assist the work of certain specified competent authorities. A decision on this can only be taken when the reports have been received.

The investigation in question is being conducted by an authorised officer appointed by me under section 19 of the Companies Act 1990, which provides that the Minister or an authorised officer appointed by the Minister may require the production of books or documents of a company or other body corporate carrying on business in the State, if the Minister is of the opinion that there are circumstances suggesting inter alia that it is necessary to determine if an inspector should be appointed to the company or that its affairs are being conducted with intent to defraud or the body was formed for fraudulent or unlawful purposes. This power includes a power to require production of documents from individuals and to require individuals to provide explanations to the authorised officer and to give all assistance to the authorised officer as the individual is reasonably able to give in connection with the investigation. In this respect, it is an offence for an individual not to comply with a request by the authorised officer.

Witnesses called by the authorised officer are complying with their statutory obligation to assist the investigation. The question of whether they wish to be accompanied by their legal representative is entirely a matter for the individuals concerned.

There is no specific legal provision covering payment by the Minister of costs under a section 19 enquiry. The question of whether costs would be reimbursed on an ex gratia basis in any particular case could only be considered when the investigation had been completed and the report of the authorised officer had been received in the Department, after careful consideration of the applicant’s involvement in the matters under investigation, including a consideration of any views of the authorised officer, and the nature and quantum of the costs for which reimbursement was sought.

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