The Garda Bureau of Fraud Investigation is investigating a number of cases of suspected fraud in companies following reports given to it by auditors under whistle-blowing legislation passed last year. Barry O'Halloran reports.
Between 10 and 20 cases are under investigation, according to Det Insp John McCann of the bureau.
The auditors filed the reports under section 59 of the Criminal Justice (Theft and Fraud) Act, 2001, which came into force last August.
The number of reports means that the Garda is receiving between one and two reports of suspected fraud in firms from auditors every month.
"We have received a number of reports and we are investigating them," he said.
Det Insp McCann last week addressed the annual conference of the Institute of Internal Auditors in Portlaoise, Co Laois, where he discussed the new legislation and a number of other issues related to fraud and money-laundering.
The Criminal Justice (Theft and Fraud) Act replaced the old larceny legislation. Section 59 obliges auditors and any other individuals involved in preparing company accounts and other returns to report suspected fraud in companies to the Garda.
Failure to comply with the legislation can lead to prosecution in the District Court.
The maximum penalty is a €1,500 fine or 12 months in prison.
Det Insp McCann explained that the obligation was similar to that imposed on banks and some professionals under the money laundering provisions of the Criminal Justice Act, 1994.
Auditors have a similar duty under the Corporate Enforcement Act, 2001, which requires them to report suspected indictable company law offences (that is offences tried by a jury in a circuit or higher court), to the Director of Corporate Enforcement.
The director, Mr Paul Appleby, has said he expects to receive about 1,000 such reports from auditors this year.
Where he believes that an offence has been committed, he must forward the information to the Director of Public Prosecutions (DPP). He said, however, that the majority of reports dealt with companies' failure to file returns, and would be referred to the Registrar of Companies.
To date, he has not forwarded any reports to the DPP.
A spokesman for accountancy body, the Institute of Chartered Accountants in Ireland, said its members were obliged to comply with legislation when acting as auditors.
"Our members take their obligations seriously, and we regularly advise them on these and other obligations," he said.
