Harney to seek 2 new inspectors for Ansbacher inquiry

The Tanaiste, Ms Harney, is to apply to seek the appointment of two new inspectors to replace Mr Justice Declan Costello, who has resigned from the inquiry into the Ansbacher deposits.

The inquiry, which began in September 1999, has discovered a significant number of new senior business people who had connections with the secretive deposits, up to as many again as the 120 named in a report drafted by an authorised officer, Mr Gerry Ryan. Mr Ryan's report led to the appointment of the inspectors.

The depositors include some of the most senior business figures in the Republic from the 1970s up to 1994, when Mr Des Traynor, the chief architect of the deposits, died.

Mr Justice Costello (75) has resigned from the inquiry on medical advice.

It is understood he is not suffering from any serious illness but has nevertheless been advised to withdraw.

Ms Harney will request the High Court to appoint new inspectors to Ansbacher Cayman Ltd, possibly as early as today or tomorrow.

One source said the inquiry into the Ansbacher deposits had turned out to be longer and more arduous than had been anticipated.

Mr Justice Costello had been inviting people in for "fact finding" interviews where persons were questioned under oath. In many cases the interviews were conducted by Mr Justice Costello without his two fellow inspectors, barrister Ms Noreen Mackey and accountant Mr Paul Rowan, asking questions.

Mr Justice Costello's decision to resign may be an indication that the inquiry is still far from complete.

The two remaining directors issued a statement yesterday wishing him well in the future and fully supporting him in his decision to stand down. "His keen mind and tremendous energy were of great value to the inquiry and his input was one of the formative influences in the development of the inquiry," they said.

The scope of the inquiry into the Ansbacher deposits led the inspectors to apply to the High Court in April for an order directing that where one of them found a possible conflict of interest in their investigation of any particular matter, or the examination of any particular witness, then such investigation or examination could be undertaken by the inspector or inspectors with no such conflict.