Harney assures Dail over Ansbacher prosecutions

The Government will give its full support to prosecutions pursued by the various corporate enforcement agencies in cases of wrongdoing uncovered by the Ansbacher Report, the Tánaiste said today.

Speaking at a special Dáil sitting to discuss the findings of the report, Ms Harney said the Director of Corporate Enforcement, the Revenue Commissioners and the Director of Public Prosecutions would investigate possible prosecutions with vigour.

The Ansbacher Report involved "issues at the heart of our democracy . . because a state that cannot collect taxes, through lack of will, lack of authority or a degeneration of its political culture, is a failed state," she said.

While pointing out the failures of statutory authorities identified by the report - in particular the Central Bank - Ms Harney was quick to identify measures taken since 1997 to address these failures, including the Office of the Director of Corporate Enforcement, whose statutory independence permits him to initiate inquiries on his own initiative.

This remit of this office will not be extended to regulate the accountancy profession. Instead, Ms Harney said, the new Irish Auditing and Accounting Supervisory Authority, will supervise the accountancy and auditing professions.

Legislation for this body, first announced by Ms Harney in February, will be brought forward in the autumn, the Tánaiste told the Dáil.

The Minister for Finance, Mr McCreevy, today told the Dáil that "tax evasion is a crime and needs to be pursued and tackled vigorously".

He defended the role of the Central Bank, even though he admitted it could have asked more detailed questioned about the operations of Guinness and Mahon. Mr McCreevy said the Bank had been "constrained in many instances because of its professional secrecy and confidentiality."

Mr McCreevy said 224 cases were currently being investigated by the Revenue Commissioners which related to information arising from the Ansbacher Report. He added that, there were another 700 connected entities on which the Revenue are building information.

The Bank was examining all references to named individuals in the Ansbacher Report, in particular directors and senior management. Mr McCreevy said the Bank had been in contact with the Director of Corporate Enforcement and was considering appropriate action.

The Minister said he remained committed to enacting the Central Bank and Financial Services Authority of Ireland Bill 2002. This will allow the Irish Financial Services Regulatory Authority (IFSRA) to begin operation.

Mr McCreevy said this body "will have responsibility for oversight of all significant financial services providers in this country." A second Bill will establish a statutory Financial Services Ombudsman, the Minister added.

Fine Gael’s Mr Phil Hogan, questioned the Tánaiste’s willingness to tackle the vested interests identified by the report, and principally the role of the Central Bank.

Mr Hogan said he would be looking at ways to strengthen the "new consumer focus of the Bank and ensure it becomes a regulator that is both feared and respected".

He also expressed his "earnest hope that the people identified in the Report as likely to have committed criminal offences should be charged and brought before the courts."

The inclusion of Mr Charlie Haughey’s name as an Ansbacher depositor was described as "the single most alarming finding of the Report", by Mr Hogan.

"A man who held the office of Taoiseach, who lectured us all on financial probity and restraint and who presented himself as a man of the people...was busy conducting his personal affairs in a manner that gave the proverbial two fingers to the people he was so anxious to lead."

Mr Hogan added that the taxpayer must not have to pay for the Ansbacher Report. "I believe that it should be faced by two companies without whose involvement this scheme would never have got off the ground – Guinness & Mahon and CRH. I believe that both companies have a moral and ethical obligation to pay the costs of this investigation."

According to Labour Party TD, Mr Tommy Broughan, "nobody can be confident that there are not other Ansbacher-type scams still operating with Irish connections to facilitate tax evasion by rich and powerful people".

Mr Broughan said the Ansbacher and DIRT investigations had proved that "self-regulation in regard to professional organisations has not worked, does not work and will not work."

A climate where the failure to report corporate crime is a serious offence in itself, is required, said Mr Broughan.

He added that the Dáil debates of 1995 showed that both Fianna Fáil and the Progressive Democrats were "bitterly opposed to legislation to regulate professional conduct especially with regard to tax evasion".

The Green Party called for prosecution of companies who breached banking regulations and of individuals who held off-shore accounts and failed to avail of the tax amnesties or made incorrect submissions.

Party spokesperson for Public Enterprise, Mr Eamon Ryan, added that the Moriarty tribunal should include the dealings of Cement Roadstone Holdings in its investigations.