The committee of inquiry set up by the Institute of Chartered Accountants in Ireland (ICAI) has begun a series of oral hearings asking members named in the McCracken report to explain their role in certain transactions.
It is understood that up to five members have been summoned to answer the committee's questions. The committee headed by former Supreme Court judge, Mr Justice John Blayney, has already heard evidence from one ICAI member with others set to follow in the coming months. Members named in the tribunal report include: former Taoiseach, Mr Charles Haughey; Dunnes Stores trustee and partner at Oliver Freaney, Mr Noel Fox; and other accountants at Oliver Freaney and Deloitte & Touche. Mr Haughey is the only non-practising ICAI member named. A spokesman for the ICAI said yesterday that the inquiry was progressing in a way that the committee believed was best, but admitted that it was moving at a much slower pace than had been expected. He added that it may not now be possible for the committee to conclude its investigations until early summer.
The committee, which also includes retired accountant, Mr Paddy Shorthall and actuary and former VHI chief executive, Mr Brian Duncan, has extensive powers of investigation. It has, however, faced difficulties in gaining access to certain files because of concerns in various accountancy firms about client confidentiality. The ICAI had warned members that it would not accept any failure by members or member firms to fully co-operate. They were obliged to assist the committee of inquiry under the rules of the institute, the ICAI has pointed out. Two senior officials from the Department of Enterprise, Trade and Employment have been attending the committee's investigation, acting as observers. This week, the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, has again stressed that the outcome of the inquiry would be a test of whether the system of self regulation for bodies such as the ICAI was working effectively.
The hearings are focusing closely on the role of ICAI members in areas where the tribunal uncovered tax evasion or a conflict of interest.
Where any professional misconduct is proven, the institute has the power to impose sanctions, including the withdrawal of practising rights. The ICAI has undertaken to publish the findings of the inquiry together with details of any sanctions imposed on members.
