The Government's effort to set up an agency to seize the assets of individuals found guilty of corruption has run into significant legal hurdles, it has emerged.
The legislation necessary to set up the Corruption Assets Bureau, with similar powers to the Criminal Assets Bureau, should have been published before Easter. But the Government yesterday conceded that it was "not possible to indicate" when the Department of Justice would be able to bring the Proceeds of Corruption Bill before the Oireachtas.
Last night, sources said the Attorney General, Mr Rory Brady, had raised doubts about the State's ability to seize the current-day value of corrupt payments - one of the key elements of the proposal.
Under the legislation, millions of euro could be seized from people criticised by tribunals or found guilty of corruption by the courts. The Government heavily promoted the idea.
Currently, reports of tribunals cannot be used to launch criminal prosecutions against individuals. Instead, a case taken by the DPP has to be proven from scratch. Last September, the Government said the new body would be able to act retrospectively and use the reports of the Flood tribunal and others in recent years to launch High Court actions.
It could act retrospectively because it would operate to a civil, and not criminal, level of proof, and it would be able to take inflation into account.
For example, if a person corruptly received £1,000 in 1960 and bought a house with that money the courts would be able to seize the current-day value of the house, the Government believed. Last night, however, it emerged that the Attorney General had raised doubts with the Department of Justice about the State's legal ability to act in such a fashion, sources indicated.
However, the delay was not acceptable to Fine Gael TD, Mr John Deasy, who said extra powers could have been given to the existing CAB with far less difficulty.
Labour Party leader Mr Pat Rabbitte commented that the Government had announced the creation of the corruption agency "with great fanfare" last year.
