Setback to Dunnes payments inquiry

The Government's bid to examine Dunnes Stores accounts in relation to Ben Dunne payments to Michael Lowry, Charles Haughey, Celtic Helicopters and Des Traynor was dealt another setback yesterday in the High Court.

Mr Justice Roderick Murphy granted Dunnes Stores Ireland and Dunnes Stores (Ilac Centre) injunctions restraining implementation of a demand by authorised officer Mr Cyril Houlihan and the Director of Corporate Enforcement to produce the companies records by 4 p.m. yesterday.

Mr Richard Nesbitt, SC, counsel for Dunnes, was granted leave to apply for a judicial review challenging the validity of Mr Houlihan's continued appointment as authorised officer.

Since the Tánaiste, Ms Harney, first ordered inspections of the companies books in July 1998 any examination of records has been delayed by judicial review proceedings.

Dunnes company secretary Mr Pat O'Donoghue told the court that in July 1998 Ms Harney appointed Mr George Moloney as an officer authorised to inspect Dunnes records.

Following proceedings alleging a bias on the part of Mr Moloney he stood down and Ms Harney appointed Mr Gerard Ryan in his place. Mr Ryan resigned in July on the basis his appointment was at an end because neither of the Dunnes companies had been prescribed under the Company Law (Enforcement) Act, 2001.

The Act had established the Office of the Director of Corporate Enforcement and conferred the functions of the Minister.

Mr O'Donoghue said the Director of Corporate Enforcement had asserted a power to continue with the process and had purported to delegate inspection powers to Mr Houlihan in contravention of the 2001 Act.

The companies claim continued demands for the production of their books is beyond the powers of the Director of Corporate Enforcement, unlawful, unreasonable, excessive and disproportionate.

The matter returns to the High Court on October 9th.