Dunnes may face State inquiry

Dunnes Stores' business may be investigated by a authorised officer from the Department of Enterprise, Trade and Employment

Dunnes Stores' business may be investigated by a authorised officer from the Department of Enterprise, Trade and Employment. The move is one of a number of options open to that Department's Minister, Ms Harney, who said yesterday there may have been breaches of company law by Dunnes or its subsidiaries.If so, it will mean that Dunnes will join former minister, Mr Michael Lowry's Streamline Enterprises and Mr Ciaran Haughey's firm, Celtic Helicopters, as companies being investigated by Department staff, who have extensive powers to examine company accounts and documents.Ms Harney told the Dail yesterday that the McCracken tribunal had demonstrated that "there may very well have been breaches of company law of Dunnes Stores or its subsidiaries".She assured the House that she was actively pursuing this matter with Dunnes at the moment. She said there were "a number of different approaches" available."I expect to be in a position to make a further announcement within a matter of days", she said.Streamline Enterprises supplies refrigeration services to the Dunnes Stores group. Celtic Helicopters benefited from loans which were backed by funds in the Ansbacher Deposits, the funds controlled by Mr Des Traynor. The tribunal report said Mr Lowry's refrigeration company was a front for large "clandestine" payments made personally to him by Mr Ben Dunne.A spokesman for Dunnes Stores said the company did not wish to comment on Ms Harney's statement. It is understood that Dunnes has received some correspondence from her Department but has not yet responded to it.Ms Harney told the Dail the tribunal report was revealing regarding the dealings between Dunnes Stores, Mr Michael Lowry and Streamline Enterprises. "Judge McCracken goes so far as to describe these as 'extraordinary', 'unorthodox' and 'unhealthy', she said."For my part I find these dealings deeply disturbing," she said. "I believe they require further scrutiny."It is understood that any enquiries by the Department would concentrate on the period when Mr Ben Dunne was managing director. Mr Dunne's sister, Ms Margaret Heffernan, told the tribunal that, since his departure, she had met Mr Lowry and he accepted that his relationship with Dunnes would have to be regularised.Neither Mr Lowry nor anyone else from Streamline Enterprises was available for comment yesterday. Celtic Helicopters joint managing director, Mr John Barnicle, said he knew nothing about an investigation by authorised officials from the Department. "We have nothing to hide in this company," was his only comment.The tribunal report also said that payments to Mr Lowry by Mr Dunne were to enable Mr Lowry to "cynically evade" tax and Mr Dunne "knowingly assisted" him in evading tax.On Tuesday, Ms Harney appointed Mr Peter Fisher to examine the books of Garuda Ltd, which the books of Garuda Ltd, which trades as Streamline Enterprises and Mr Gerard Ryan to examine the books of Celtic Helicopters Ltd. Both are trained accountants and full-time Department officials, attached to its consultancy division.Mr Fisher previously investigated CountyGlen. "They know what they're about," said one source.It is understood they have been given no specific deadline by which to report.Once Ms Harney receives the report, she will take legal advice on whether to institute proceedings against various parties.