The Larry Goodman controlled AIBP group has agreed to pay the Department of Agriculture and Food €3.81 million in compensation for irregularities uncovered in the declaration of intervention beef during the early 1990s.
And the Department of Agriculture has agreed to pay €0.94 million to the Anglo Irish Beef Processing Group which it had withheld since 1991 pending resolution of an unrelated case involving an AIBP plant in Donegal.
The out-of-court settlement of the cases which was approved by the Cabinet on the basis of advice given by counsel and the Attorney General, brings to an end seven years of litigation between the Goodman group and the Department of Agriculture and Food.
A statement issued on behalf of the Minister for Agriculture and Food, Mr Walsh announcing the settlement with the AIBP group said the cases concerned actions taken by the Minister against the group in respect of irregularities of the Beef Intervention System during the early 1990s.
"The irregularities included the non declaration of intervention beef during deboning and irregular activities during canning operations," the statement said.
"These cases have been settled and payment has been made by AIBP to the Minister in the sum of €3.81 million, which is largely in respect of the disputed meat in the two main cases, Shannon Meats and AIBP Rathkeale," it added.
"Payments for deboning of beef withheld by the Minister from AIBP since 1991 pending resolution of these actions, and payment in respect of an unrelated case involving an AIBP plant in Donegal, are now being released by the Minister. "These two payments total €0.94m.," said the statement.
A statement issued by the AIBP Group through its public relations company said the agreement reached would avoid a costly and time-consuming hearing.
"It is clear from sworn and uncontroverted evidence given to the Beef tribunal, that Mr Goodman and senior group executives were unaware of the irregularities at the Rathkeale plant, and that they did not condone any such activities," it said.
"Mr Larry Goodman. in his evidence to the tribunal, undertook to repay the appropriate compensation arising from any irregularities in Rathkeale.
"The company wrote to the Department of Agriculture in October 1995, again confirming this position," it said.
"Since these events, AIBP carried out an in-depth review of its controls and has put in place revised procedures and compliance arrangements," it concluded.
The €6.6 million claim against AIBP was initiated in 1996 on foot of Control Inquiry Team raids on the Rathkeale and Shannon Meats plants in October 1991.
This followed successful criminal prosecutions over the misappropriation of beef intended for food aid to Russia in Shannon Meats and undeclared yields from deboning at the Rathkeale plant.
AIBP lodged three counter claims for €5.2 million on foot of payments which had been withheld from the company, the cancellation of special export licences and the sale of beef from one of its stores which was not in intervention.