ANALYSIS: The three-page statement issued last night by Campus and Stadium Development Ireland (CSID) is longer than a report it sent to Minister for Tourism, Sport and Recreation Dr McDaid on Wednesday on the status of Waterworld UK, the company that signed heads of agreement to operate the National Aquatic Centre at Abbotstown.

It was the first detailed comment on the affair since The Irish Times queried Waterworld UK's status with CSID last Monday.

Confirming that a due-diligence exercise showed Waterworld UK was dormant in December 2000, CSID said the company was legally entitled to proceed with its bid to operate the €62 million centre if it was in a position to prove it had available resources from a third party on which it could rely to perform the contract. As it happened, Anglo Irish Bank informed CSID of its willingness to provide a guarantee to Waterworld UK.

The Taoiseach, Mr Ahern, told the Dáil yesterday morning that the Government was never informed of Waterworld UK's status. CSID's statement did not say why.

Referring to the bid process initiated in July 2000, CSID said: "Waterworld UK was described at that stage as closely linked to the world's leading aquatic operators (Schlitterbahn) and manufacturers of leisure pool attractions (NBGS). They outlined in their submission that the operation of the pool at Abbotstown was well-matched to their portfolio and capability, and that NBGS would offer site planning and patented attractions. This was signed by Keith Palmer, director of Waterworld UK."

The involvement of Schlitterbahn and NBGS was never cited in the Government press release on January 23rd last, which confirmed that the heads of agreement signed by Waterworld UK was followed by a contract with a separate entity, Dublin Waterworld. CSID said the bid provided for the establishment of such a company.

The January press release said Dublin Waterworld was registered in January 2001 and incorporated on February 12th, 10 days before the heads of agreement were signed. It transpired that Waterworld UK took only a 5 per cent shareholding in Dublin Waterworld.

That effectively meant that Waterworld UK had ceded its rights to profits from the venture, and its obligations, to another entity. While not addressing that factor, CSID said it was satisfied that Dublin Waterworld had the "necessary operational and financial resources" to operate the centre.

In a separate statement, Dublin Waterworld said "CSID were aware of all the facts" before selecting its consortium. The company said the structure of its shareholding reflected "internal agreements" between the figures involved. Earlier this week, Dublin Waterworld's majority shareholder, Mr John Moriarty, said the "only two people named in relation to the operating company" in the bid were his co-shareholders, Mr Kieran Ruttledge and Mr Liam Bohan.

The question of the apparent transfer to Mr Moriarty of the obligations and benefits of the contract was not addressed by CSID.