Findings shatter Dail's cosy club

When you are a member of the most exclusive club in the State, expulsion or imprisonment is something that happens to other people…

When you are a member of the most exclusive club in the State, expulsion or imprisonment is something that happens to other people. And efforts to introduce legislative reforms are deeply resented and bitterly opposed. As a consequence, it took five years and two governments for the Labour Party to push through filleted versions of the Ethics in Public Office Act and the Electoral Act, providing for the disclosure of Oireachtas members' financial interests and of political funding.

Mr Justice McCracken has said bluntly that it's not enough. In a devastating indictment of low standards in high places, he warned that political self-regulation was inadequate at Leinster House and the system would have to be changed.

He went much further than that. In a pitiless review of the behaviour of, and evidence given by, Charles J Haughey and Michael Lowry, the report found their statements to be unbelievable and their actions to be unacceptable.

Referring papers to the Director of Public Prosecutions for possible criminal proceedings, because of obstruction and possible perjury in the case of the former Taoiseach and Fianna Fail leader, the tribunal found that Mr Haughey had "failed in his obligations to his constituents and to the citizens of the State" by accepting large amounts of money to fund his lifestyle. "If such gifts were permissible, the potential for bribery and corruption would be enormous," it said.

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The tribunal urged the Revenue Commissioners to become more active and it suggested that serious sanctions should be imposed on Mr Lowry because of consistent tax evasion. As for the Dail, it had been misled by Mr Lowry and should put its own house in order.

In that regard, Dick Spring went for broke by proposing that the Committee on Procedure and Privileges should meet and suspend Mr Lowry from the services of the Dail.

But no power exists to expel an elected member. And any new disciplinary legislation could be open to constitutional challenge. In such circumstances, involving hoary precedent and club rules, Mr Justice McCracken recommended an intrusion by outside forces.

A false declaration of financial interests by a member of the Oireachtas should be made a criminal offence, he proposes, and not be dealt with internally. Those found guilty of breaches of the Ethics in Public Office Act should be deprived of Oireachtas membership, either temporarily or permanently.

In addition, any candidate in a Dail or Seanad election should be required to produce a tax clearance certificate and to make a statutory declaration that his or her tax affairs were in order.

As for Fianna Fail's suggestion that bankers, accountants and other professional advisers should be obliged to disclose unusually large financial transactions involving politicians or public servants, Mr Justice McCracken felt it wouldn't work. He also believed the establishment of a special commission to monitor and investigate allegations of political corruption was unnecessary. But increased powers and responsibilities for the Ombudsman could be the way forward.

In spite of these reservations by the tribunal, the Taoiseach, Mr Ahern was not to be gainsaid. Within hours, the Fianna Fail leader was promising the establishment of a permanent Public Ethics Commission. He said the Attorney General, Mr David Byrne, was already working on the legislation and they hoped to have it in place by October.

Mr Ahern was not committing himself to a new tribunal which would investigate other aspects of Mr Haughey's funding or of commercial decisions taken by previous Fianna Fail-led governments. The matter, he said, would be considered at next Thursday's Cabinet meeting of the Fianna Fail/Progres sive Democrats Government.

From across the Atlantic, Mary Harney put her spoke in. The Tanaiste and leader of the Progressive Democrats thought it would be a very good idea indeed to investigate the funding of Mr Haughey's lifestyle.

The Dunne payments would have gone "nowhere near financing his (Mr Haughey's) lifestyle over the last 20 years", she said. "It is clear that multiple payments of the same order from a number of sources would have been required to sustain that lifestyle. It begs the question as to the identity and motives of other donors and the extent to which such payments could, and did, influence Mr Haughey's behaviour as an elected politician, as a Minister, and as Taoiseach."

While Ms Harney was leaning towards total disclosure and a new tribunal, senior Fianna Fail figures were muttering about constitutional difficulties in going back over government decisions taken in the Haughey years.

But they were willing to have another look at those "Ansbacher accounts", where Irish citizens were found to have held as much as £38 million in offshore deposits. And Mr Ahern spoke of the Government's expectation that "the relevant agencies of the State" would take "all necessary action" on foot of the report.

While the tribunal had found no political impropriety, Mr Ahern declared that "the acceptance of large gifts or payments or personal benefits in a surreptitious manner or the large-scale evasion of tax and exchange control regulations by even one or two senior serving politicians or members of government is deeply damaging to trust in politics."

Honesty, truthfulness and integrity were fundamental requirement in public life and they had to ensure that "public decisions affecting everyone's welfare are taken only on grounds of equity and the public good, and to ensure that possession of wealth can never purchase privately political favours", Mr Ahern said.

John Bruton wanted a new tribunal. "Without knowledge of who paid Mr Haughey how much, and when, there can be no public confidence that the apprehended political and financial favours did not occur," he said.

The report had established conduct that was "entirely unacceptable" by both Mr Haughey and Mr Lowry and further action was now required by the relevant State agencies.

An extension of the inquiry into the planning process, with the possible investigation of a Fianna Fail Minister, was suggested by Pat Rabbitte of Democratic Left and supported by Mr Spring.

Mr Justice McCracken has been much more forthright in his report than members of the Oireachtas expected. His findings will cause friction within the Coalition Government and among the opposition parties as they wrestle with the need to introduce new penalties for unacceptable practices.