Investigation into NIB may have cost over £1m

The investigation into National Irish Bank by two High Court inspectors had cost over £800,000 (€1 million) by March last and is now believed to have cost in excess of £1 million.

The inspectors, Mr Tom Grace and retired Supreme Court judge Mr Justice John Blayney, were appointed by the High Court under section 8 of the Companies Act 1990 in March 1998.

Last December The Irish Times reported that private sector consultants brought in to assist the investigation would not work for £1,000 per day and a higher fee had to be agreed. The Department had to seek back-up from PriceWaterhouseCoopers because of the demands being made on its staff from other company law investigations.

A spokeswoman for the Department of Enterprise, Trade and Employment said the cost of section 8 inspectors' investigations must be met by the Department of Justice, Equality and Law Reform. However, last year the Department of Finance said in a letter to the Department of Enterprise that it had received encouraging legal advice from the Attorney General's office on the possible full recovery of the costs from NIB.

The Department of Finance was very concerned about engaging the private consultants and being "locked into an open-ended arrangement which imposes significant up-front costs to the Exchequer".

A schedule of all investigations carried out under the provisions of the Companies Act 1990, produced by the Department of Enterprise, Trade and Employment in March for the Dail Select Committee on Public Accounts, shows that over £3 million has been spent on investigations under the Act since it came into being.

A copy of the schedule was given to The Irish Times on foot of a Freedom of Information request. The Section 8 High Court inspectors' investigation into National Irish Bank is listed as having cost £820,000. The investigation is ongoing.

The cost of the various ongoing authorised officers' investigations into Celtic Helicopters and the companies linked to the Ansbacher deposits, and the completed investigations into Dunnes Stores and Garuda Ltd/Streamline Enterprises, is given as £19,000. These investigations were conducted by civil servants.

The cost of the authorised officer's investigation into Faxhill Homes, conducted by accountant Mr George Maloney, is given as £87,000, with further fees due.

High Court section 14 inspector Mr Lyndon McCann's inquiry into Bula Resources cost £203,000, according to the schedule.

The authorised officer's inquiry into Clonmannon Retirement Village cost £88,000. The High Court inspector's section 8 investigation into Countyglen plc cost £103,000. The cost of the Section 14 investigation into the Ballsbridge Telecom site (Chestvale Properties & Hoddle Investments) was capped at £850,000.