The Department of Communications, Marine and Natural Resources has received a report on Dundalk Port Company from a firm of accountants it appointed to examine the "state of affairs" of the company.
The report was commissioned on foot of what the department described as persistent breaches of the requirements of the Harbours Act and the code of practice for the Governance of State Bodies.
The department also confirmed that, two years ago, the company drew down more than €370,000 without the necessary consent.
An oral report by the chief executive of Dundalk Port Company on the deteriorating financial situation of the company was also a factor in the department appointing Baker Tilly O'Hare last September to report on the situation.
It made a number of recommendations for the financial restructuring of the company and for improving its corporate governance and recommended a restructuring of the company's "unauthorised borrowings".
Details of the report on the company were issued by Minister of State for Communications Pat the Cope Gallagher to Louth TD Arthur Morgan (Sinn Féin) as a written reply to a parliamentary question.
Mr Morgan said the reply revealed "a history of cavalier activity by the board, ranging from unauthorised borrowings to the establishment of an unauthorised subsidiary company".
The existence of the subsidiary company came to light when the department requested information from the port company to assess whether it could be granted retrospective consent for the money it drew down.
In his reply to Mr Morgan, the Minister of State wrote: "Sufficient information to allow me make that assessment was not forthcoming. In the course of this process, a number of other corporate governance breaches by Dundalk Port Company, relating to other unauthorised borrowing and the unauthorised establishment of a subsidiary company came to light."
Mr Morgan has now asked for clarification of the status of the unauthorised company as well as whether its directors are solely responsible for its debts. "The company is clearly holding back development at the port. The board should come out and be frank and straight and put this sad, sorry period behind them."
The secretary general of the department and the chief executive of Dundalk Port Company will meet shortly. The department will inform the company how it is proposed to implement the recommendations of the report, Mr Gallagher added.