Two accountants have been fined and reprimanded by an Institute of Chartered Accountants (ICAI) disciplinary tribunal which upheld complaints against them.
Mr James Hackett, a sole practitioner from Tuckey Street in Cork, was fined €5,000 (£3,938) and reprimanded for failing to satisfy a judgment debt secured against him in favour of Mr John Murphy for €35,317 contrary to by-law 63 (e) of the ICAI's by-laws and for failing, neglecting or refusing to respond to correspondence from the ICAI's secretary on the matter.
Mr Brian Farren, a barrister representing the ICAI's complaints committee, told the tribunal some of the judgment was discharged by Mr Hackett - but the balance remained outstanding by February 7th, 2001.
Mr Tony Hanahoe, representing Mr Hackett, said his client had not intended to insult, ignore or undermine the ICAI and was sorry for his actions. He said Mr Hackett's delay in discharging his debt and failure to respond to the ICAI was due to the pressure of work and extraordinary circumstances in his personal life.
Mr Hackett provided the tribunal with a cheque for €16,275 which he said would satisfy the remainder of the debt. In imposing a fine of €1,000 in each case and costs of €3,000 against Mr Hackett, tribunal chairman Mr Aedan McGovern said it was unacceptable not to address the substance of the case at the earliest possible time. Mr Hackett was given 21 days to appeal the judgment.
In a second hearing before the tribunal, complaints were upheld against accountant Mr Kevin Byrne. The tribunal heard Mr Byrne, of Kevin Byrne & Co, formerly of Rathfarnham, Dublin, had failed to comply with the ICAI's rule of professional conduct 506 in not having any adequate professional indemnity insurance for the period October 2000 to October 2001.
The tribunal was told that Mr Byrne was unwell during the periods mentioned and had not practised as an accountant. As such, he did not think he needed professional indemnity insurance for this period as he had not worked.
Mr Farren, representing the complaints committee, said the ICAI's rules of professional conduct set out that accountants should have professional indemnity insurance for at least 24 months after they cease practising. Mr Byrne said he accepted the matters set out by the complaints committee.
Mr McGovern said it was unacceptable that Mr Byrne did not deal with the situation earlier. He issued Mr Byrne with a reprimand and imposed a fine of €1,000 for not having adequate professional indemnity assurance. Costs of €3,000 were also imposed. Mr Byrne has 21 days to appeal the decision.
