Harney says inquiry uncovers more Celtic Helicopters/Ansbacher links

The Tanaiste, Ms Harney, has said the authorised officer appointed to examine Celtic Helicopters has found links between the company and the Ansbacher deposits, which were not revealed during the McCracken tribunal.

The latest accounts filed for Celtic Helicopters Ltd, the company in which Mr Ciaran Haughey is a major shareholder, show that in March 1996 the company was in need of a significant injection of equity or a dramatic shift to profitability. The accounts, for the year to the end of March 1996 and filed in the Companies Registration Office in October last year, show a very high proportion of loans to equity. What has happened since in regard to the company's financial health is not public knowledge.

Celtic Helicopters is currently being examined by Mr Gerard Ryan, an authorised officer appointed by Ms Harney, the Minister for Enterprise, Trade and Employment. The abridged accounts for 1995/96 seem to indicate a loss of around £80,000. Net assets were £36,862; a similar loss in 1996/97 to the previous year, therefore, would see the company in difficulty. Accumulated losses were £484,350.

The report of the auditors, Deloitte and Touche, notes that the net assets of the company were less than half the amount of its called-up share capital (£370,329), and that, in their opinion, there existed at March 31st, 1996, a situation which, under the Companies Act, "may require the convening of an extraordinary general meeting".

During 1995/96, loan capital of £290,329 was converted into preference shares. A total of 290,329 of 7 per cent non-cumulative redeemable preference £1 shares were bought by MS Nominees Ltd, of Inns Court, Winetavern Street, Dublin. This is the address where accounts relating to the Ansbacher deposits were held following the death of Mr Des Traynor in 1994. Mr Sam Field Corbett, of MS Nominees, gave temporary use of some office space there to an acquaintance, Mr Padraig Collery, who had taken over maintenance of the accounts.

MS Nominees Ltd also holds three other groups of shares in Celtic Helicopters: 15 A ordinary £1 shares and 14,963 B ordinary £1 shares; 55 A ordinary £1 shares and 54,862 B ordinary £1 shares; and 5 A ordinary £1 shares and 4,988 B ordinary £1 shares. The identity of the beneficial owners of the MS Nominees shareholdings is not known.

The two directors of Celtic Helicopters, Mr Ciaran Haughey and Mr John Barnicle, each hold 60 A ordinary £1 shares. Another shareholder is Larchfield Securities, which holds 5 A ordinary £1 shares and 4,987 B ordinary £1 shares. Larchfield Securities is the company established by the Haughey family for the purchase of Inishvickillaune island in Co Kerry.

The notes to the financial accounts show total secured loans and overdrafts of £683,650, with £140,704 of this being due within one year. Charges against the company are listed in the filed documents and show a total of 14 since 1985, the year after the company was incorporated. Three of these have yet to be satisfied: a mortgage with Irish Nationwide, and two helicopter mortgages held by Smurfit Finance Ltd.

Details of some company loans were given during the McCracken tribunal. The tribunal heard how money held in accounts in the Ansbacher deposits was used to back up loans to Celtic Helicopters from Guinness & Mahon and from Irish Intercontinental Bank (IIB). These are the Irish banks in which the Ansbacher deposits were lodged at various times.

A £150,000 loan with IIB was paid off with money from an account in the Ansbacher deposits which held money used to defray the living expenses of the former Taoiseach, Mr Charles Haughey. Mr Ciaran Haughey said he had not been aware of this. Mr Justice McCracken said he did not accept that evidence. The tribunal heard that the late Mr Traynor, who managed the Ansbacher deposits, was involved in organising the loans for Celtic Helicopters.

The Tanaiste asked Mr Ryan to look into the operation of the Ansbacher deposits generally after he had given her an interim report on Celtic Helicopters. It is understood Mr Ryan said he needed to gain access to details of the Ansbacher deposits if he was to finish his report.