Cayman deposits hearing begins

The Chief Justice of the Cayman Islands begins hearing an application today from Ansbacher (Cayman) Ltd that the bank be allowed to give information to the Irish High Court inspectors investigating the Ansbacher deposits.

The case, before Mr Justice Anthony Smellie, is to be held in chambers and is scheduled to last three days. Under the secrecy laws of the Cayman Islands, a bank cannot give information to a third party without the consent of the court.

About 120 wealthy Irish business figures are believed to have held money in the secret accounts, designed to evade tax. The decision of Ansbacher Cayman to seek to give information to the inspectors came as a surprise and is thought to be the result of pressure from the bank's British and South African parents.

Ansbacher Cayman is part of the Ansbacher group, owned by the South Africa-based Firstrand group. The bank's parents are understood to have been unhappy about the negative publicity from Ansbacher Cayman's non-co-operation with the Irish authorities.

The inspectors are Judge Sean O'Leary, barrister Ms Noreen Mackey, accountant Mr Paul Rowan and Mr Michael Cush SC. They were preparing an application to the Cayman courts seeking to have Ansbacher Cayman co-operate with their inquiry, when the Cayman bank made the surprise application.

However, a number of parties are objecting to the Ansbacher application. Among those objecting is the Cayman firm Hamilton Ross Company Ltd, which holds or held funds for the former Taoiseach, Mr Charles Haughey, and the Fianna Fail TD Mr Denis Foley. Another objection is believed to be from a client or clients of Ansbacher Cayman. The attempt to get access to documents held by Ansbacher Cayman began in 1997 when the McCracken tribunal took a case in the Cayman courts. That application was not successful. Following publication of the McCracken report, the Tanaiste, Ms Harney, initiated inquiries by authorised officer Mr Gerry Ryan. The companies did not co-operate.