Proceedings against the construction firm which built the controversial £390,000 (€495,200) extension to the home of former Fine Gael Minister, Mr Michael Lowry, are to take place in Naas District Court next week.
The proceedings, against Faxhill Homes Ltd and its directors, Mr Jack Tierney and Ms Jennifer Tierney, of Newbridge, Co Kildare, are being taken by the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney. They follow a report by authorised officer Mr George Moloney.
A number of offences under company law are alleged, including failure to keep proper books of account, lack of compliance in relation to charges and debentures, and failure to produce books and documents.
Some of the offences carry penalties on summary conviction of a fine not exceeding £1,000 or imprisonment for not more than six months, or both.
The court case is the first such hearing to arise out of the series of investigations initiated by Mr Harney in the wake of the McCracken tribunal. The establishment of that tribunal arose from the fall-out following the revelation that work carried out on Mr Lowry's Tipperary home by Faxhill was paid for by Dunnes Stores and treated in its books as work on the Ilac Centre in Dublin.
The McCracken tribunal heard that work carried out on Mr Ben Dunne's home and believed to be worth in the region of £1 million, was treated in a similar fashion in the Dunnes Stores books. The Tanaiste is currently involved in a legal battle with Dunnes Stores to have an authorised officer appointed to two of its companies.
Proceedings against Faxhill took place in Naas District Court on November 30th and December 1st, 2000, but were not reported. The case is to resume on Monday before Judge Tom Fitzpatrick and is expected to last five days.
The proceedings follow the coming into force last year of amendments to the Companies Act, which allow prosecutions up to three years after evidence of alleged wrongdoing coming to the Department's attention. Previously the Minister could only seek prosecutions within three years of the alleged offences being committed.
The work on Mr Lowry's home was carried out in the early 1990s.
Disclosures about the construction work led to the resignation of Mr Lowry from his cabinet position in 1996 and his subsequent departure from Fine Gael.
The Moriarty tribunal, which is investigating payments to Mr Lowry and the former Taoiseach, Mr Charles Haughey, is due to begin hearings shortly into the Revenue's performance in raising tax from Mr Lowry.
In the wake of the 1997 McCracken report, Ms Harney initiated inquiries into Faxhill Homes, Mr Lowry's company Garuda Ltd, Celtic Helicopters, Guinness & Mahon Bank, Irish Intercontinental Bank, Ansbacher (Cayman) Ltd, Hamilton Ross Ltd (Cayman Islands), College Trustees Ltd (Channel Islands) and Kentford Securities Ltd.
The Faxhill and Garuda inquiries have been completed, as has the inquiry into Ansbacher (Cayman) Ltd. On foot of the latter report, Ms Harney successfully petitioned the High Court for the appointment of inspectors to investigate the company. That inquiry is ongoing.
