The Government is to introduce legislation by Christmas to allow for greater disclosure and examination of payments to politicians and public servants at local and national level.
The Taoiseach, Mr Ahern, and the Tanaiste, Ms Harney, have agreed that key recommendations in a Fianna Fail submission yesterday to Mr
Justice Brian McCracken, the chairman of the Dunnes payments tribunal, should be implemented through law.
Under the legislation, an Ethics Commission to investigate complaints against individuals involving payments or favours will be established. It is envisaged that the Ethics Commissioner will have the status and independence of the High Court and will be appointed by the Oireachtas.
The commission will investigate "disclosures" from bankers, accountants and other professional advisers who would be obliged to report any unusual or large financial transactions involving politicians and public servants. It is suggested that a failure to notify the commission of a relevant transaction should be a criminal offence.
The commission may be invested with powers to prosecute. A
Government spokesman said last night the new Bill would "subsume" the
Ethics in Public Office Act, which provides for a register of interests, and the Electoral Act, which governs disclosure of candidates' funding during election campaigns. In order to ensure a system of tax compliance by public representatives, it is also expected that members of the Dail, Seanad, local authorities and other statutory bodies will be obliged to produce certificates from tax accountants or advisers showing that their tax affairs are in order.
Mr Ahern and Ms Harney have discussed the need for further disclosure obligations by politicians and public servants and
"strongly feel there is a need to move ahead". It is not clear which
Government Department will devise the new legislation but sources said it may be handled by the Taoiseach's Department.
The recommendations of Mr Justice McCracken will have an influence on the shape of the Bill. In its recommendations, Fianna Fail said the evidence to the tribunal had "been a cause of great concern and public anxiety".
While the "vast majority" of public representatives in the Dail and Seanad operated from a sense of public interest, additional legislative and administrative procedures must be implemented to avoid the risk of politicians and public servants being exposed to conflicts of interest, suspicion of favouritism or the perception of bias in favour of generous contributors.
Yesterday, in final submissions before he adjourns to write his report, Mr Justice McCracken was urged not to believe the evidence of the former Taoiseach, Mr Charles Haughey.
Counsel for the tribunal, Mr Denis McCullough SC, said it was
"inconceivable" that Mr Haughey did not know the source of the money which he used to support his lavish lifestyle. It was inconceivable that Mr Haughey had not asked the late Mr Des Traynor about the source of the funds.
Mr McCullough said Mr Haughey had lied on three occasions to the tribunal and had allowed the tribunal to waste time and money by travelling to the Cayman Islands in pursuit of information which was known all along by Mr Haughey.
He said Mr Haughey's claim that he did not know the source of the money rang "hollow" as he had accepted £210,000 from Mr Ben
Dunne personally in Kinsealy, Co Dublin, in November 1991. Mr Haughey was then Taoiseach.
Mr Haughey's evidence to the tribunal was that he had no memory of this meeting with Mr Dunne or of receiving the £210,000.
While an appeal which the tribunal has lodged in the Cayman
Islands may be pursued, Mr Justice McCracken is expected to publish his report in the second or third week of next month, regardless of developments there.
See also pages 6, 7 and 8