The High Court has ordered former Bula Resources chairman, Mr Jim Stanley, to make himself available for an interview with a Government inspector and provide him with certain company documents. The inspector, Mr Lyndon MacCann, was appointed to investigate ownership of shares held by two foreign companies in the oil and gas exploration company, Bula Resources (Holdings) plc.
The orders were issued after the court was told that the inspector was satisfied that Mr Jim Stanley has refused to co-operate with the inspector's requests and was in possession of information which was of "central importance" to the investigation.
Mr Justice Peter Kelly ordered that Mr Stanley, whom the court heard has an office in Moscow, produce by March 11th next certain documents requested by Mr MacCann.
The judge also directed that Mr Stanley must, on March 13th next, attend an interview by the inspector and subject himself to questions. He said the court orders could be left at Mr Stanley's place of business in Moscow, with the concierge at that address and could also be posted to Mr Stanley's last known place of residence in Ireland - Brownsbarn, Thomastown, Co Kilkenny.
The orders were sought by Mr Shane Murphy, for the inspector, who told the court of various efforts made to effect service in Moscow of notice of legal proceedings being taken by the inspector against Mr Stanley.
Most recently, notice of the proceedings had been served at Mr Stanley's place of business and on the concierge of the building housing Mr Stanley's office. He asked the court to deem that the service made was good and sufficient and, in those circumstances, was seeking an order that Mr Stanley comply with requests of the inspector addressed to him in a letter of February 2nd last.
In an affidavit, Mr MacCann, a barrister, said he had been appointed by the Tanaiste, Ms Harney, in October last to investigate and report on the membership of Bula Resources (Holdings) plc, with a view to determining those persons who were or are financially interested in the success or failure of that company, or who were able to influence its policy.
Mr MacCann referred to an agreement of August 1995 between Bula and Mir Oil Developments Ltd in which Bula acquired a 25 per cent stake in Mir Space for more than 101 million ordinary shares in Bula. He said those shares were issued to Mir Oil. Bula's total investment under the agreement was stated to be £11.3 million. Mr MacCann said Mr Stanley had resigned his position as a director, chairman and chief executive of Bula in April 1997. He said serious public concerns had arisen in relation to the manner in which the transaction between Bula and Mir Oil had taken place and there was a genuine concern to discover the true beneficial owner of shares held by Mir Oil, through Chamonix Nominees Limited, in Bula.
Mr MacCann said he travelled to Moscow to conduct inquiries and interviews on December 7th last. Mr Stanley had informed him, by letter, that he would meet with the inspector at Mr Stanley's office at Petrovka Street, Moscow, on December 11th.
Mr MacCann had indicated to Mr Stanley he wished to meet him at the Irish Embassy in Moscow because arrangements had been made for translation facilities and recording interviews. He said Mr Stanley said he had agreed to meet for a discussion but would not be interviewed.
Mr Stanley had indicated he would be willing to meet at his office on December 11th provided no tape recording took place. Mr MacCann said he had replied to Mr Stanley and formally required Mr Stanley to meet at the Irish Embassy in Moscow on December 11th "for the purpose of answering on oath such questions as I might put to him concerning the affairs of Bula Resources (Holdings) plc". He had also required Mr Stanley to produce by December 9th certain documents identified in a letter from the inspector.
He had informed Mr Stanley that if he failed to comply, his conduct would be certified as a refusal to answer questions and to produce documents and an application would be made to the High Court for further orders.
In a letter of December 7th, Mr Stanley had written to the inspector's solicitors saying he was willing to meet the inspector at his office in Moscow on December 11th and would also give the inspector any relevant documentation in his possession, Mr MacCann said. The inspector's solicitors had replied reiterating the inspector's requirements for a meeting at the Irish Embassy and regarding the production of documents.
Mr MacCann said an English solicitor and Mr Brendan Stanley, son of the defendant, had arrived at the Irish Embassy on December 11th. The solicitor handed him a letter setting out Mr James Stanley's legal adviser's replies to the inspector's previous correspondence and indicated that Mr MacCann should provide certain undertakings before Mr Stanley was prepared to co-operate with the investigation.
The inspector said he informed the solicitor he would not provide the undertakings sought and regarded Mr Stanley's attitude as a refusal to co-operate.
