The Tanaiste, Ms Harney, has issued legal proceedings against the construction firm that built the controversial £390,000 extension to the Tipperary home of the former Fine Gael minister, Mr Michael Lowry.
The Department of Enterprise and Employment confirmed this weekend that 30 summonses had been issued in connection with breaches of company law by Faxhill Homes. A spokesman refused to comment any further on the basis that the proceedings were sub-judice, with the first cases expected to be heard in the autumn.
Individuals found guilty of offences under the Companies Act - which sets out the rules under which companies must be run - face fines of up to £1,000 or 12 months in prison. Successful prosecutions have been brought in the past for offences ranging from failure to keep proper books of accounts to not maintaining a proper register of shareholders and other members.
The directors of Faxhill Homes are listed in the Companies Office as Mr John Tierney of Newbridge, Co Kildare, and Mr Denis McCoy, of Castleknock, Co Dublin. The revelation in 1997 that Faxhill Homes had carried out work on the home of Mr Lowry, which was paid for by Dunnes Stores, forced his resignation as minister for public enterprise and subsequent departure from Fine Gael.
The transaction was investigated by the McCracken tribunal and afterwards by the Department of Enterprise, Trade and Employment. The Tanaiste appointed an inspector, Mr George Moloney, to the company and the prosecutions now being brought are based on his report.
The McCracken tribunal was told that the work done on Mr Lowry's house at Holy Cross, Co Tipperary, in 1992 was charged to a branch of Dunnes Stores in the ILAC Centre in Dublin. The tribunal was also told that substantial work - believed to be worth in the region of £1 million - was done on Mr Ben Dunne's house in Castleknock and charged in a similar fashion.
Faxhill sent false invoices for work carried out at the ILAC Centre, the tribunal was told.
The proceedings being brought by the Tanaiste follow the coming into force last January of a number of amendments to the Companies Act.
Previously, she was empowered to seek prosecutions only within three years of an alleged offence being committed. This limit was changed to allow prosecutions within three years of evidence of an alleged wrong-doing being brought to her attention.
The new law now opens the way for the Tanaiste to bring company law prosecutions arising out a number of other Departmental investigations which are focusing on events that occurred more than three years ago.
Authorised officers from the Department of Enterprise, Trade and Employment are investigating the affairs of Celtic Helicopters and a number of banks involved in the Ansbacher scheme. Celtic Helicopters is the aviation company run by Mr Ciaran Haughey, a son of the former Taoiseach, Mr Charles Haughey.
The banks being investigated include Guinness & Mahon and IIB, formerly Irish Intercontinental Bank, in Dublin. An investigation into Ansbacher (Cayman) in the Cayman Islands has been completed.
The Department has also concluded an investigation into Garuda Ltd, a company owned by Mr Lowry. Garuda, which traded under the name of Streamline Enterprises, carried out refrigeration work for Dunnes Stores. The work done on Mr Lowry's house was in part payment of the work done for Dunnes by Garuda.
The Department refused to comment on whether any proceedings were planned on foot of the Garuda investigation.
Figures released by the Department show that it has obtained 21 convictions for offences under the Companies Act this year. This compared to 16 convictions in 1999 and one in 1998. The offences include failure to hold annual general meetings, not keeping proper books of accounts, not keeping a register of members or shareholders and improper use of the word "Ltd".
