Harney says O’Malley not factor in calling halt to inquiry

Former tánaiste Mary Harney has denied asking a civil servant investigating offshore accounts to stop his work after he alleged Des O’Malley, her predecessor as Progressive Democrats leader, held one.

Sinn Féin deputy leader Mary Lou McDonald made the claim in the Dáil when she named a number of former senior politicians referred to in a dossier on alleged tax evasion sent to a Dáil committee last month.

Gerard Ryan, a civil servant in the Department of Jobs, Enterprise and Innovation, sent the dossier to the Dáil Committee on Public Accounts (PAC). He had been asked to investigate the issue of Ansbacher accounts by Ms Harney when she was minister in the department, but was asked to stop his work in 2004.

Ansbacher was a bank in the Cayman Islands, but the nominally offshore money in the deposits was held in Guinness & Mahon Bank on Dublin’s College Green.

In a statement, Ms Harney said at “no point was I ever influenced by any of the names” brought to her attention by Mr Ryan, who she appointed to the position of Authorised Officer.

“I made it clear, regardless of who might have been involved, it had to be investigated correctly and thoroughly,” she said, adding departmental records would provide this. “Throughout the seven years of the investigation I supported the Authorised Officer in his role.”

Ms Harney also said she approved a bonus payment to Mr Ryan when he resigned and conveyed his disappointment at not being appointed Director of Corporate Enforcement.

“This would have been payable on completion of his investigation,” she said, adding that she and her officials defended the length of time Mr Ryan was taking to complete his work.

She said Mr Ryan indicated in February 2004 he would be finished within three months, but she asked him to conclude five months later.

It is also understood Ms Harney was concerned she would be leaving the department in a cabinet reshuffle and wanted the work completed by the time she changed jobs.

Investigations

Official investigations found that the Cayman trusts were under the control of the Irish people who placed money in them, rather than the Cayman trustees who should properly have had control.

The supposedly offshore money could be withdrawn by wealthy depositors at Guinness & Mahon’s premises in Dublin.

The committee has taken legal advice on the issue and is to hear evidence from Josephine Feehily, outgoing chairwoman of the Revenue Commissioners.

Speaking in the Dáil, Ms McDonald said Mr Ryan “has come forward with allegations of tax evasion by senior political figures and of obstruction in the investigation and exposure of these wrongdoings”.

Ansbacher accounts

He had said his investigation into Ansbacher accounts, offshore accounts and tax evasion was terminated by Ms Harney in 2004, once Mr O’Malley was discovered to be one of the holders of these accounts.

“The whistleblower further alleges that other senior figures from Fianna Fáil and Fine Gael also held these very secret Ansbacher accounts that were administered by the late Des Traynor and a Mr Pádraig Colleary, formerly of Guinness & Mahon.

“The whistleblower reports, as I said, absolute obstruction to his efforts to complete his investigation. He further reports that agencies of the State have failed to investigate all of these matters thoroughly, including tribunals of inquiry.

“It is not a case of me making allegations against anyone. I emphasise that these are allegations, but they come from a credible source.

“The whistleblower alleges Des O’Malley, Ray MacSharry, Gerard Collins, Máire Geoghegan-Quinn, an S Barrett, Richie Ryan - a former minister for finance - and others . . . I am echoing the serious allegations that have been brought forward by the whistleblower. That is the allegation.”

Ms McDonald’s statement was criticised by other members of the PAC, including chairman John McGuinness, who said he did not agree with what she had done.

Former European commissioner Máire Geoghegan-Quinn, former Progressive Democrat and Fianna Fáil minister Des O’Malley, former Fianna Fáil ministers Ray MacSharry and Gerard Collins, and former Fine Gael minister Richie Ryan have all denied ever having Ansbacher accounts.