The inspectors investigating Ansbacher (Cayman) have taken on two more accountants in their Dublin office and a firm of solicitors in Guernsey.

The developments were prompted by the growing scale and scope of their discoveries. The investigation, which involves an inquiry into the affairs of some of the State's leading business figures, had cost approximately £800,000 by the beginning of October, according to documents released following a request under the Freedom of Information Act.

In September the inspectors wrote to the Department of Enterprise, Trade and Employment formally requesting extra staff.

"Over the recent past it has become clear that a considerable amount of additional work will be generated for this office by certain reports and investigations, both internal and external to this inquiry," wrote Ms Frances Gaynor, secretary to the inspectors.

The inspectors requested two additional accountants whom, the letter stated, would be required for investigation and analysis. A higher executive officer would also be required, to assist with document management and analysis, Ms Gaynor said.

The positions were filled from Government departments, meaning that four accountants are now assisting the inspectors.

In December two new inspectors, Judge Sean O'Leary of the Circuit Court and Mr Michael Cush SC, were appointed, to replace Mr Justice Declan Costello, who retired for health reasons. Mr Cush is to work on a part-time basis.

The two remaining original inspectors are barrister Ms Noreen Mackey and accountant Mr Paul Rowan. The inspectors were appointed in September 1999 following an application to the High Court by the Tanaiste, Ms Harney.

During the application to the court for the replacement of Mr Justice Costello, it was stated that Ms Harney wanted to replace him with two inspectors because of the heavy workload involved and her desire that the inquiry be completed as soon as possible.

Documents released by the Department show that in July 2000 the inspectors wrote seeking sanction to engage solicitors in Guernsey, in the Channel Islands. Ms Gaynor referred to "developments" which required this move.

Mr Gerry Ryan, an authorised officer appointed by Ms Harney, is currently conducting an inquiry into College Trustees, Guernsey, a company associated with the late Mr Des Traynor and which managed funds for wealthy Irish residents.

The Guernsey solicitors are to "assist in the process of any applications to the courts in the Channel Islands that the inspectors may wish to pursue. They will advise the inspectors on legal issues and court procedure in the Channel Islands and will carry out the usual preparatory work involved in litigation including the preparation of documents", Ms Gaynor explained.

"On the instructions of the inspectors, they will also retain and brief Queen's counsel (and if necessary junior counsel) and attend in court."

A list of practising solicitors based in Guernsey was obtained by the inspectors and, on the advice of London QC, Mr Tony Bueno, three firms were recommended. Following inquiries by him, two were ruled out due to conflicts of interest, leaving Babbe Le Poidevin Allez, St Peter Port, Guernsey.

Mr Bueno, who carried out work in the Cayman Islands for the McCracken (Dunnes Payments) Tribunal, is advising the inspectors in relation to applications to the Cayman Islands courts.

"He will be engaged in court work in the Cayman Islands and will also undertake similar work in the Channel Islands on behalf of the inspectors," Ms Gaynor advised the Department in June, 2000.