Court allows Ansbacher probe

An attempt to block the authorised officer inquiring into the Ansbacher deposits was struck out in a court in the Cayman Islands last night.

The decision in the case taken by Ansbacher (Cayman) is a victory for the authorised officer, Mr Gerard Ryan, who had requested documents from the bank's legal representatives in Dublin. It may also have implications for other investigations under way into the controversial deposits.

The Tanaiste, Ms Harney, who appointed Mr Ryan, last night welcomed the decision. "I am extremely pleased by the outcome of the case, which was contested vigorously on our behalf," she said.

It was the second legal action against Mr Ryan taken by a bank associated with the Ansbacher deposits. An action taken by Irish Intercontinental Bank in January in the High Court, which questioned the officer's power to seek the information he had requested, also ended in victory for Mr Ryan.

In the Cayman Islands case Chief Justice designate, Mr Anthony Smellie QC, agreed with lawyers for Mr Ryan and the Tanaiste, Ms Harney, that the application made by the bank should not be allowed to proceed as he did not have jurisdiction to hear it.

The bank was looking for a ruling under the confidentiality laws of the Cayman Islands, which are designed to prevent the disclosure of commercial information. The hearing was held in camera.

Mr Ryan has sought documents relating to the Ansbacher deposits from the legal representatives of Ansbacher (Cayman) in Dublin. However, it is understood the documents being sought were brought back to the Cayman Islands in 1994 or 1995. The bank's application to the Grand Court could have led to it being told not to return the documents to Dublin.

However, the victory does not necessarily mean the Cayman bank will now send the documents sought back to Ireland. An attempt to mount a legal action on the Cayman Islands to force them to do so, could mean the islands' confidentiality law would then come into effect.

Mr Ryan and another senior official from the Department of Enterprise, Trade and Employment, Mr Paul Appleby, went to the Cayman Islands last week to attend the Grand Court hearing. It opened on Monday and adjourned on Tuesday.

The Tanaiste and Mr Ryan were represented in court by Mr Tony Bueno QC and Mr John Lawless, both of whom were involved in the case taken in the Cayman Islands by the McCracken tribunal. Mr Lawless was solicitor to that tribunal but now works in the Cayman Islands.

Mr Ryan was appointed to four banks by the Tanaiste, Ms Harney. They are: Guinness & Mahon bank and Irish Intercontinental Bank, both in Dublin; and Ansbacher (Cayman) and Hamilton Ross, both in the Cayman Islands. All four were involved in the operation of the Ansbacher deposits. Detailed "memorandum accounts" of individual depositors' funds were kept by Dublin agents of Ansbacher (Cayman) and Hamilton Ross.

Mr Ryan had earlier been appointed to Celtic Helicopters Ltd, following the publication of the McCracken report. He filed an interim report in which he said he needed access to information on the Ansbacher deposits in order to produce a final report. Ms Harney then appointed him to the four banks.

The Revenue Commissioners and the Moriarty tribunal are also investigating aspects of the Ansbacher deposits.

??????anaiste and may be forwarded to relevant authorities., but may not be published. The Moriarty tribunal's inquiry is limited to connections between the deposits and the former Taoiseach, Mr Haughey, and any other politician or public servant who may have been involved.