The Moriarty Tribunal into payments made to Mr Charles Haughey and Mr Michael Lowry may be unable to investigate key financial aspects covered by its terms of reference. The Central Bank is expected to challenge the legal authority of the tribunal to investigate its supervision of the Guinness & Mahon bank in Dublin and the extent of its knowledge of the Ansbacher accounts, according to reliable bank sources.
The Minister for Finance, Mr McCreevy, yesterday placed a letter before the Dail in which the Governor of the Central Bank, Mr Maurice O'Connell, stated: "Prior to the publication of the Tribunal (McCracken) report, the Central Bank had no knowledge of the existence of the `Ansbacher deposits' referred to during the tribunal hearing or of the role played by G&M in the management of those deposits". These matters were being disclosed, Mr O'Connell said, only because the confidentiality requirements of Section 16 of the Central Banks Act, 1989, had been waived by G&M.
Under the Act, bank officers are precluded from disclosing specific information on its activities to outside agencies, except in special circumstances. These include the release of information to "a court in connection with any criminal proceedings". The bank is understood to take the view that while the tribunal has the powers of the High Court, it is not covered by this provision because criminal proceedings are not involved.
On Monday, the Moriarty Tribunal wrote to the Central Bank advising it of its terms of reference and seeking its help.
A bank spokesman said yesterday it would co-operate as fully as possible with the tribunal and would be making a written submission. If it was asked to attend it would do so.
Asked if the bank was prepared to disclose details of the Ansbacher accounts and its regulation of Guinness & Mahon, the spokesman said the matter was being discussed with the bank's legal advisers.
Should the tribunal not have the power to investigate the supervisory operations of the Central Bank, it will make a nonsense of the terms of reference set for it by the Oireachtas. The tribunal has been asked to make broad recommendations "for enhancing the role and performance of the Central Bank as regulator of the banks and of the financial services sector generally".
It is possible the tribunal may be able to carry out much of its work by emulating the procedures of the McCracken Tribunal, which secured the direct co-operation of Guinness & Mahon (Ireland) Ltd and of other banks and individuals.