€4.3m for firms with Enterprise board links

Almost half the directors of Enterprise Ireland had interests in companies and funds that received financial assistance last year from the State body that supports indigenous industry, it has emerged.

Enterprise Ireland said in its annual report for 2004 last week that it had given supports worth €4.3 million to such companies.

While the list of individual payments, recipients and connections with directors was not published in the report, it is available on request.

The schedule of board members interests shows that five of the 12 directors had interests in companies that received financial support. The entities that received the financial support were mainly in the venture capital area and the directors in question were excluded from the discussions on the transactions.

Enterprise Ireland chairman Pat Molloy, a former chief executive of Bank of Ireland, declared an interest in five entities that received supports worth a total of €3.93 million.

These were: Bank of Ireland Venture Capital; Delta Equity Fund II Ltd; Trinity Venture Fund 1; Trinity Venture Fund 2B; and Waterford Wedgewood.

Mr Molloy also had an interest in two bodies for which further supports worth €135,720 were approved: Waterford Wedgewood, and the Irish Management Institute.

Ms Heather Ann McSharry, the country manager for Boots Healthcare, declared her interest in the Bank of Ireland Venture Fund, Delta Equity Fund II and Trinity Venture Fund 2B, which received a total of €2.93 million between them.

Mr Brian Kearney, a past president of the Institution of Engineers in Ireland, declared his interest in the Trinity Venture funds 2B and 1, which received €1.18 million.

Ms Veronica Perdisatt, chairwoman of the Kilkenny Design group, also declared her interest in the two Trinity Venture funds.

Mr Gus Fitzpatrick, a businessman, declared his interests in two companies that received €387,345: Glanbia and Richard Keenan & Co.

Some of these directors had interests in other companies that were suppliers to Enterprise Ireland or clients. Three other directors - Kieran McGowan, Margaret Daly and John Connolly -- had interests in companies that also supplied Enterprise Ireland or were its clients.

The annual report said: "The board members of Enterprise Ireland complied with the Department of Finance guidelines covering situations of personal interest.

"In cases of potential conflict of interest, board members did not receive board documentation on the proposed transaction, nor did the members participate in or attend discussions relating to the matters."