The mention of a small number of accountants in the Ansbacher report has done further damage to the reputation of accountants, the president of the Institute of Certified Public Accountants in Ireland has said.
Mr Brian Coffey, writing in the institute's journal, said the events of 2002 and the reduction of the "Big Five" accountancy firms to the "Big Four", with the collapse of Andersen, had "greatly damaged the reputation of the profession".
In relation to the Ansbacher deposits, Mr Coffey said the Revenue Commissioners "have adequate powers to investigate alleged wrongdoing in this regard and, where substantive complaints emerge concerning the professional conduct of accountants, I am confident that those complaints will be dealt with expeditiously by their respective professional body".
Accountants mentioned in the Ansbacher report are all believed to be members of the Institute of Chartered Accountants in Ireland. According to the report, the directors of Guinness & Mahon bank had discussions with Kennedy Crowley (now KPMG) when deciding to open subsidiaries in the Cayman Islands.
The late Des Traynor and Cayman banker Mr John Collins held a meeting in Dublin in May 1971 where they met representatives of Kennedy Crowley.
"This was the genesis of a mutually profitable liaison between Kennedy Crowley and Guinness & Mahon," the report says.
At the time, many high-net-worth clients of the accountancy firm were looking for a secure and perhaps confidential investment for their funds, according to the report.
Mr Traynor was a qualified accountant having trained with the firm of Haughey Boland. Another former senior accountant with that firm, Mr Jack Stakelum, also featured in the Ansbacher report.
Mr Stakelum set up his own business after leaving Haughey Boland. As part of this, he directed clients' money towards Mr Traynor, lodged it in the Cayman accounts. Mr Stakelum also set up a system for managing this money which, the inspectors decided, mirrored many of the characteristics of Mr Traynor's modus operandi.
"The inspectors conclude that the aforementioned activities of Mr Stakelum constituted assistance to Ansbacher in the carrying on of its Irish business. As Mr Stakelum's detailed knowledge of Ansbacher's Irish business was sparse, the inspectors are of the view that such assistance was not knowing assistance."
However, because of the nature of the system he operated and the secrecy with which he operated it, the inspectors concluded that Mr Stakelum may have committed a number of criminal offences, including the common law offence of conspiracy to defraud. Mr Stakelum has declined to comment on the inspectors' conclusions.
Mr Coffey, referring to the controversy over accountancy in the US, said a WorldCom or an Enron could happen here. However, the Republic had "enacted legislation and established enforcement mechanisms which are far ahead of anything applying in the US".
He said proposals for the role and responsibilities of auditors would add to the real and perceived independence of Irish auditors. The proposals should also ensure the problems that arise from an overly close relationship between management and auditors would be avoided here, he said.
