Committee opts for Comptroller to investigate

Allowing the Comptroller and Auditor General (C&AG) to investigate the AIB/DIRT affair is the "speediest way" of dealing with the issue, the chairman of the Dail Committee of Public Accounts, Mr Jim Mitchell, said last night.

The committee decided yesterday to seek increased powers for the C&AG to enable him to investigate the claim that AIB was granted an "amnesty" by the Revenue in 1991 in relation to arrears of DIRT (Deposit Interest Retention Tax) going back to 1986.

The powers sought would give the Comptroller, Mr John Purcell, the right to examine records in AIB and other financial institutions, and to take evidence from witnesses on oath. His investigation is expected to take about three months.

In the meantime the committee is also seeking amendments to the Compellability of Witnesses Act to enable it to resume hearing evidence from key witnesses early next year.

The legislation required for Mr Purcell to begin his inquiries is expected to be passed speedily so that he can begin next month.

His job will be to establish the facts of how DIRT has been administered by the Revenue Commissioners and the financial institutions.

AIB's claim that the problem of bogus non-resident accounts, on which DIRT should have been paid, was widespread in the 1980s will necessitate an examination of the records of several financial institutions.

Mr Purcell will then present a report to the Dail but, as is the case with all of the C&AG's reports, the matter will ultimately be referred back to the committee.

It can then resume taking evidence from witnesses with a view to establishing accountability and making recommendations, if necessary.

In the meantime the committee would, under the new legislation sought, remain involved in the investigation.

But it will be February at the earliest before witnesses central to the affair will be called to give evidence.

The plan to have the Revenue Commissioners chairman, Mr Dermot Quigley, recalled today has also been put back until Mr Purcell's inquiries are complete.

"I believe this is the most streamlined and the speediest way of getting effective accountability in this case," said Mr Mitchell.

He added that if the committee had taken the entire inquiry upon itself, it could have done no other work in the meantime.

In an interim report to the Dail last night, following an eight-hour meeting, the committee requested legislative changes on three fronts: changes to its terms of reference and new powers for both itself and the Comptroller and Auditor General.

The changes to its terms of reference would include the right to establish sub-committees, which the Public Accounts Committee does not currently have. This would give it the option next year of having a sub-committee continue the investigation while other business is also attended to.

As well as increased powers for the C&AG, it is also proposed that "absolute privilege" be given to persons giving evidence to him and providing documents. The committee itself is seeking the power to compel witnesses to attend in relation to taxation matters, which it is precluded from doing at present.