Quinn seeks new laws to investigate affair

New legislation to enable the Comptroller and Auditor General to investigate the AIB/DIRT affair was called for yesterday by the Labour Party leader, Mr Ruairi Quinn.

It is now increasingly likely that the Comptroller, Mr John Purcell, will be asked to complete the investigation, which is currently being conducted by the Dail Committee on Public Accounts.

The committee inquiry is proceeding apace but will encounter difficulties if documents it seeks from Revenue are refused to it on confidentiality grounds, or key witnesses refuse to attend.

While it has the power "to send for persons, papers and records", it cannot order the production of documents or compel witnesses to appear without a resolution of the Dail - and not in any circumstances when dealing with taxation matters.

If the investigation is to be effective, an amendment to the Compellability of Witnesses Act of last year is likely to be required.

An alternative is to give Mr Purcell the powers of a High Court inspector which would allow him equal access to the records of financial institutions as he currently has to public agencies.

One committee member said yesterday the choice might come down to having a "show trial" conducted by the committee, or a less open but more effective investigation by Mr Purcell who would ultimately report to the Oireachtas.

Mr Purcell would have a considerable advantage over the committee in that he would not encounter the confidentiality problems likely to hamper a full public investigation.

Mr Quinn said that as the committee did not have the resources and backup to carry out an authoritative investigation, he was satisfied with the suggestion that Mr Purcell should act "as its agent".

He said he has sent a draft bill to the Taoiseach which would facilitate a full investigation into the affair by Mr Purcell. "The need for this legislation is now obvious and the work on it should begin immediately," he added.

While the committee may ultimately surrender the investigation to Mr Purcell, whose office has a staff of 120, most of them accountants, it is set to continue with its inquiries for the present and no decision has been taken on the options open to it.