Buchanan to get Dunnes payments inquiry under way

POLITICIANS and public servants are expected to receive letters from Judge Gerard Buchanan shortly seeking explanations for payments…

POLITICIANS and public servants are expected to receive letters from Judge Gerard Buchanan shortly seeking explanations for payments received from Mr Ben Dunne.

The Government appointed Judge Buchanan to examine Price Waterhouse documents which listed "irregular payments" Mr Dunne made during his term as chief executive of Dunnes Stores and to report to the Dail Committee on Procedures and Privileges on the matter.

He was also empowered to seek additional material which might clarify aspects of the Price Waterhouse report.

The inquiry was set up when it was found that Mr Dunne paid at least £208,000 for work done on Mr Michael Lowry's private home in 1992/93. Mr Lowry later resigned as Minister for Energy, Transport and Communications and made a statement to the Dail on the matter before Christmas.

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One document Judge Buchanan may seek is a court affidavit by Mr Dunne which is understood to contain details of payments of more than £1 million made to London bank accounts in 1990 and 1991. A former Fianna Fail minister was said to be the recipient of this money.

Apart from making donations to politicians and to political parties, Mr Dunne reportedly gave money to senior public servants and officials. Judge Buchanan is expected to allow any named persons up to two weeks to reply to his queries. After that, he will report to the Ceann Comhairle, Mr Sean Treacy, on progress.

Only the names of members or former members of the Oireachtas, or any local authority, health board or other similar body, their relatives or political parties - at the time of any payments referred to in Price Waterhouse - may be made public.

The report's contents must be kept confidential to Judge Buchanan at all times and the Government may not be shown the full report. The Government is indemnifying Dunnes Stores, its directors and employees and the professional firms involved against costs, charges, damages, losses, actions, proceedings or claims arising from the handling of the report.

A sub committee of the Dail Committee on Procedure and Privileges was nominated before Christmas to receive the report and to decide on its work procedures. But the sub committee, comprising Mr Michael Bell, Labour; Mr Jim O'Keeffe, Fine Gael Mr Eric Byrne, Democratic Left; Mr Des O'Malley, Progressive Democrats and Mr Noel Dempsey, Fianna Fail, failed to elect a chairman at its first meeting. Mr Bell, who was the Government's nominee, failed to secure a majority when Mr O'Keeffe failed to turn up. Mr Bell and Mr Dempsey tied with two votes each and the meeting was adjourned until the new year.

The proceedings of the sub committee will not be fully covered by Dail privilege and, as things stand, it will not have the power to compel witnesses to attend. It is expected to begin its work within 10 days.

Should the sub committee fail to make satisfactory progress on matters of substantial public interest, the Government is likely to accede to opposition party demands for a sworn, judicial inquiry.