The Institute of Chartered Accountants in Ireland (ICAI) has appointed retired Supreme Court judge, Mr Justice John Blayney, to inquire into any professional or business misconduct by accountants named in the McCracken Tribunal report.
The inquiry, which is the first of its kind to be carried out by the professional body, is expected to formally begin its work within the next couple of weeks. Its findings, together with details of any sanctions imposed on members, will be published, according to chief executive Mr Sean Dorgan.
Mr Dorgan said an initial budget of around £100,000 has been agreed to cover the costs of the investigation, but that this may be increased if necessary. The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, yesterday welcomed the announcement and stressed that her Department would continue to press for observer status at the inquiry. "Hopefully, the institute will respond positively in the light of the enormous public interest in this matter," she said.
Industry sources have indicated, however, that the ICAI may be reluctant to concede this request for fear of prejudicing the case of any of its members that may come under scrutiny. ICAI members named in the tribunal report include: former Taoiseach, Mr Charles Haughey; Dunnes Stores trustee, Mr Noel Fox; and the Dublin accountancy firm, Oliver Freaney, which acted as auditors to Mr Michael Lowry's refrigeration company, Streamline and financial consultants to Dunnes Stores.
Mr Dorgan said the institute had decided to set up a formal inquiry in response to concerns expressed by its members and by the public about the conduct of some of its members. The inquiry will operate under the ICAI's special disciplinary scheme, which gives Mr Justice Blayney powers to commission detailed investigations and to seek information or evidence from any person, firm, tribunal or government body. He will also be able to recommend the withdrawal of practising rights and impose financial penalties in cases of proved professional misconduct.
"It will be entirely up to Mr Justice Blayney to decide how he wants to progress things," Mr Dorgan said. "Mr Blayney is seen as a strong and independent chairman who will thoroughly investigate the matters in question." Mr Justice Blayney will shortly be appointing up to four high-profile professionals to work with him. He may also work with inspectors from the Department of Enterprise, Trade and Employment who are already investigating the affairs of some companies highlighted in the report.
The inquiry will also be able to draw on the investigative skills of the accountancy body's joint monitoring committee, which regularly investigates allegations of misconduct in Ireland, Britain and Scotland. Which option is undertaken will be at the judge's discretion.
The Blayney inquiry will establish its own working arrangements and is expected to call a number of members to explain their roles in the transactions highlighted by the McCracken report.
Mr Dorgan said it was too early to speculate how long the investigation would run for, or when its final report would be published. Mr Justice Blayney, a former Irish rugby international, became a Supreme Court judge in October, 1992, serving for four years.
From Dublin, he was educated at Belvedere College and Glenstal Abbey, UCD and King's Inns.
In the early 1980s, before being appointed to the High Court, he was a legal adviser to the original Pro-Life Amendment Campaign (PLAC).
