The Government will investigate whether Iona Technologies has broken export restrictions by supplying software to the US military without a proper licence.
Iona, one of the most successful indigenous software firms, has not been granted a military or dual-use licence by the Government despite being a supplier of the software used to fire tomahawk cruise missiles. The firm, which was spun out of Trinity College Dublin, also supplies software that enables US laboratories to test and maintain nuclear weapons stockpiles.
Informed sources said yesterday the Government would shortly contact the firm, which employs about 180 software engineers in Dublin, to determine if it was violating export laws.
The investigation is being initiated following a report in The Irish Times which found that Iona develops software that is used by the US military in the firing mechanisms for tomahawk cruise missiles.
Under Irish law if the company is found to have breached export licence controls, its directors could face up to 12 months in prison or a fine of up to €1,900.
Both the British and the US military have fired scores of tomahawk cruise missiles into Iraq since the second Gulf war began this week. These missiles are designed to fly at extremely low altitudes at high subsonic speeds, and are piloted over an evasive route by several mission-tailored guidance systems. Each missile has a 1,000-lb bomb.
An Iona spokeswoman said yesterday the firm was fully compliant with all export licensing requirements. "The Department is aware of the basis on which dual-use items are exported," she said. "The assessment is that our dual-use item products fall within a criteria for exemption of licensing requirements."
The Government is currently conducting a major review of its export licensing controls due to concerns about the proliferation of military and dual-use goods. Dual-use goods are components, software or chemicals that are used by military or defence forces.
Forfás recently appointed economic consultants to carry out the review, the first phase of which is expected to be completed in two weeks.
In a response to a recent Dáil question, the Tánaiste, Ms Harney, said that while Ireland did not have an arms industry in the normal meaning of the term, it was important that export control rules were up to best international standards.
"My department has asked Forfás to undertake a review of our strategic controls system with a view to recommending how best we can modernise and strengthen them and ensure full compliance with Ireland's international obligations," she added.
Iona is just one of several indigenous software firms that supply products to firms or state organisations with links to the military. ParthusCeva, a Dublin-based firm that develops sophisticated communication chip technology, recently signed a deal with QinetiQ, a spin-off from the British Ministry of Defence. The firm is supplying QinetiQ with global positioning system computer chip technology.
