Bula is to `make a statement' to Garda on Stanley

Bula Resources is to "make a statement" to the Garda concerning its former chairman and chief executive Mr Jim Stanley and his beneficial ownership of Mir Oil Development. This will allow the Garda Bureau of Fraud Investigation to begin a criminal investigation onto Bula's disastrous Mir Oil, deal in which the company lost £12.3 million.

The deal was set up by Mr Stanley for his own benefit, according to an inspector's report compiled for the Tanaiste, Ms Mary Harney.

In a statement issued yesterday, Bula said the company has had two meetings with officers of the Garda Bureau of Fraud Investigation about the issue.

"Bula has taken advice from the Garda Siochana on their requirements regarding a statement which must be made by Bula if the Garda Siochana are to commence a criminal investigation of this matter. The company is presently engaged in the extensive compilation of all original documentation which will be necessary to support its intended statement," the company said.

"Bula and its officers will co-operate fully with the Garda Siochana should they decide to investigate this matter," it added.

The statement follows the revelation last month that the company had not made a formal complaint to the Garda, despite being informed at a meeting in February that the fraud bureau could not investigate the affair until the injured party, Bula, made a complaint.

That meeting was arranged because the Stock Exchange sent papers relating to the controversy to the Director of Public Prosecutions in October, 1997, because it believed a serious crime may have been committed. The DPP passed the papers to the Garda last December.

In May, 1997, Bula became aware that Mr Stanley may have lied to the company about the ownership of Mir Oil. In July this year, the report of the Government inspector appointed to investigate the affair stated that Mr Stanley failed to tell his fellow Bula directors that he owned Mir Oil.

On August 7th Bula was granted a worldwide injunction preventing the dissipation of property and finances of Mr Stanley. In its statement Bula said it has "communicated with the police authorities in both Jersey and England with regard to aspects of this transaction which may result in a criminal investigation and criminal charges against Mr Jim Stanley and other in both these jurisdictions". The company said it would assist these authorities in their enquiries.

Bula is hoping to recover some ofmthe £12.3 million it lost in the Lir Oil deal by suing Mr Stanley. In the High Court injunction proceedings counsel for Bula, Mr Michael Cush, said it was apparent that Mr Stanley had been guilty of the most serious "fraud, deceit and breach of fiduciary duty".

The company is seeking orders of discovery against a number of parties as part of its effort to identify the assets of Mr Stanley. The case was adjourned until September 22nd.