Harney's motive unclear, says Dunnes counsel

Dunnes Stores had to come to court to get the Minister for Enterprise, Trade and Employment, Ms Harney, to give reasons why she appointed an authorised officer to inquire into two Dunnes companies and to prevent "a trawl" through their affairs, the High Court was told yesterday.

Mr Adrian Hardiman SC, for Dunnes Stores, said his clients continued to be "stymied" because the reasons given by Ms Harney for the appointment of an authorised officer were bland and uninformative.

He was making submissions to Mr Justice Kinlen on the sixth day of Dunnes's challenge to Ms Harney's appointment of an authorised officer to examine the books and records of two Dunnes companies, Dunnes Stores Ireland and Dunnes Stores (ILAC Centre) Limited.

Last November, Ms Justice Laffoy said Dunnes should get reasons from the Minister for the appointment. These were then furnished.

Until that court decision, it had undoubtedly been the intention of the Department that Dunnes would be stymied and would not be given reasons, Mr Hardiman said yesterday. While the Minister had since complied with the request for an explanation, it had been only a formal compliance.

He said that Section 19 of the Companies Act was primarily a measure to require a company to produce such documents and books as may be "specified".

The requirement for specificity contrasted with the broad demand of the officer, which had all the hallmarks of a trawl of his clients' companies' affairs.

Mr Hardiman said the reasons given by the Minister made no real disclosures of information. His clients believed that they should be told "what is going on". The Dunnes Group wanted to know the Minister's "current" concerns and what was the purpose of the enquiries.

Earlier, Mr Hardiman read an affidavit by Mr Eugene Beglan, a quantity surveyor and building cost accountant, who provided quantity surveying services in respect of work done by Faxhill Homes Ltd on the house of former Fine Gael minister, Mr Michael Lowry, in Tipperary.

Mr Beglan said that Mr George Maloney, an authorised officer appointed by Ms Harney, wrote, stating that he was examining the books and documents of Faxhill Homes. Mr Beglan said he sent documents requested by Mr Maloney and also attended at his office in August 1998.

Last November, an article in The Sunday Times referred to a report being prepared by Mr Maloney, Mr Beglan said. That article stated that "the report is highly critical of Eugene Beglan . . . [who] worked on Lowry's house, with the job charged to Dunnes". Mr Beglan said he was extremely disturbed by the article, as he understood that any information given to Mr Maloney would be in the strictest confidence. Mr Hardiman said that Mr Beglan wrote to the Minister about the matter.

The hearing continues.