Ethics act wants action

There must come a time when Mr Justice Flood and Mr Justice Moriarty, with the full authority and power of the High Court behind…

There must come a time when Mr Justice Flood and Mr Justice Moriarty, with the full authority and power of the High Court behind them, cite witnesses before their tribunals for obstruction, if not perjury, and refer their cases to the Director of Public Prosecutions. Such a course of action, perhaps resulting in prison sentences, would appear to be the only way of ensuring compliance with the directions of the Dail and the wishes of the electorate in relation to the investigation of offshore accounts and political payments. Mr Charles Haughey received such treatment from the McCracken tribunal in 1997 and a case against the former Taoiseach is at present before the courts. Partial recall and even general memory loss have become features of Irish life. The DIRT inquiry by the Dail Committee of Public Accounts provided striking examples of special pleading, wilful ignorance and worse, as individuals from the world of finance, politics and the public service gave evidence. A common thread was an unwillingness to accept responsibility for actions taken.

The latest revelations at the Flood and Moriarty tribunals have continued to feed public anger and dismay. Mr Denis Foley, Fianna Fail TD for Kerry North and a former chairman of the Dail Committee of Public Accounts, finally confirmed the existence of his offshore account with Ansbacher Cayman as part of a tax evasion scheme stretching back to the mid-1970s, before the Moriarty tribunal. And Mr Oliver Barry, the successful bidder for a national radio broadcasting licence, reluctantly confirmed payment of £35,000 to Mr Ray Burke while he was Minister for Communications in 1989. From last July, the Flood tribunal had unsuccessfully sought Mr Barry's voluntary co-operation and a full narrative statement concerning the payment.

Later this week, officials from the Central Bank are scheduled to go before the Moriarty tribunal and explain the bank's role - or lack of it - in regulating the banking sector, monitoring off-shore accounts and operating exchange control laws. Its palpable failure to confront and deal with tax fraud, exchange control irregularities and possible money-laundering involving a subsidiary of Guinness and Mahon (Ireland) Ltd in the Cayman Islands, in the 1980s requires explanation. The tribunal may also explore why the Central Bank apparently failed to advise the Minister for Finance, Mr McCreevy, in 1997 - and through him the Dail - that it had knowledge of banking practices involving Guinness & Mahon Cayman Trust Ltd in 1978 which it regarded as "contrary to the national interest". On the basis of its record, in relation to this matter and the DIRT scandal, the Central Bank should not retain the function as regulator of the financial services sector.

The prevarication of the Government in the face of disclosures affecting politicians has been nothing short of disgraceful. Eighteen months ago, the Minister for Finance, Mr McCreevy, announced that a new Standards in Public Office Commission would be established. Members of the Oireachtas would have to show their tax affairs were in order, he said. And breaches of the Ethics Act would be made criminal offences, punishable by prison sentences of up to three years. At the same time, the Fianna Fail Parliamentary Party failed to adopt a code of conduct. And it now appears that legislation will not come before the Dail until the autumn. The time for political commitments and soft words is long past. Urgent action is required to shore up public confidence in our democratic system.