The governing council of the Institute of Chartered Accountants (ICAI) has confirmed it will vigorously defend its disciplinary processes in any judicial review. An application by retired former Deloitte & Touche managing partner Mr Paul Carty for a judicial review of certain decisions and procedures of the Blayney Appeal Committee is expected to be heard in the High Court on Monday, April 22nd.
ICAI declined to disclose yesterday whether the council would oppose the granting of a judicial review at the application hearing. "That decision will be revealed in the court on Monday week," a spokesman said.
After an almost three-hour special meeting of the 23-member council called to "discuss the implications of this challenge and the strategy to be adopted in combating it", ICAI issued a strong defence of the Blayney Committee and the Appeal Committee.
Publication of the findings of the Blayney inquiry, which began in 1997 into possible professional misconduct by accountants first revealed in the McCracken tribunal, is expected to be further delayed by the latest legal challenge.
On April 3rd the ICAI informed its 12,500 members in a letter that solicitors acting for Mr Carty and the Deloitte & Touche firm had informed the institute that they were seeking a judicial review of certain decisions and procedures of the Blayney Appeal Committee.
Mr Carty and Deloitte & Touche said they were asking the courts to interpret the institute's old rules and procedures, particularly as applied to their cases. These are the rules which were in force in 1997 when the investigation began although they have since been re-written.
The ICAI has undertaken to publish the Blayney inquiry findings. Chief executive Mr Brian Walsh described the legal move as a serious financial challenge to the institute and a very serious challenge to the current regulation of the profession.
At that time, Mr Carty and Deloitte & Touche said they were "taken aback" that the ICAI would issue a statement ahead of a court hearing. In a statement they said Mr Carty and the firm had, since 1997, "co-operated fully with the Blayney committee and subsequently with the appeal committee".
Mr Carty has already got a High Court order restraining the Blayney Appeal Committee and the ICAI from proceeding with his appeal until after April 30th. Deloitte & Touche said it would seek a similar order unless the Appeal Committee agreed not to proceed with a hearing of its appeal planned for last Tuesday.
In its statement yesterday, ICAI said: "The Blayney Committee and the Appeal Committee comprise individuals of the highest standing, appointed by the Council of the Institute to conduct fair and impartial inquiries."
The council expressed "surprise" at the reaction of Mr Carty and Deloitte & Touche to the decision to inform its members of the legal challenge.
The Appeal Committee was set up in June 2000 when some of the findings of the Blayney Committee of Inquiry - established in 1997 to investigate possible professional or business misconduct by ICAI members on foot of revelations at the McCracken tribunal about payments to politicians by Dunnes Stores - were appealed.
