Harney monitors ex-Haughey firm

The Tanaiste may appoint an authorised officer to investigate Feltrim Mining, the exploration company established by Mr Conor Haughey, the son of the former Taoiseach. Officials from Ms Harney's Department of Enterprise, Trade and Employment are understood to be monitoring evidence being given about the company at the Moriarty tribunal to establish if any company laws were broken. The tribunal, which is investigating Mr Charles Haughey's finances, has been told by Mr Trevor Watkins, a former director, that "it appeared that the purpose for which the company was incorporated was to provide employment for Mr Conor Haughey".

The former Taoiseach's eldest son set up the company in 1988 after qualifying as a geologist in the United States. It raised £1 million in a public flotation but never found any significant mineral deposits and was eventually the subject of a reverse takeover by another company, Conary Minerals in 1990. At that stage the financier Mr Dermot Desmond invested £26,667 in the company. By 1991 the company was once again in trouble with accumulated losses of £3.5 million and was rescued by Mr Desmond, who lent the company £55,000.

Mr Jack Stakelum, an accountant, also lent the company £15,000. Mr Desmond also agreed to guarantee a loan to Feltrim from AIB.

The Moriarty tribunal has quizzed a number of former executives, including Mr Bernie Cahill, the Aer Lingus chairman, about the loans from Mr Desmond and Mr Stakelum.

Despite being of vital importance to the company, they were never mentioned in the board minutes of the time. There was no record of the terms of the loans, which were eventually converted into shares in the company prior to a refinancing in 1993 when it was taken over by Mr Paul Bristol.

Mr Desmond increased his stake in the company to 10% at that stage following a further round of fund-rasing. Following the takeover by Mr Bristol, the company was renamed Minmet and diversified into landscaping. Since 1995, the company has been run by Mr Jeremy Metcalfe another British businessman. Mr Metcalfe declined to comment. The Tanaiste can appoint an inspector if she believes that its books and record were not properly kept and that a breech of company law has taken place.