The auditors to Garuda Ltd, the refrigeration company run by the former Fine Gael minister, Mr Michael Lowry, have qualified the latest accounts for the company, pending tax liabilities arising from the McCracken tribunal. The company is still in communication with the Revenue Commissioners regarding payments totalling more than £600,000 discovered by the 1997 inquiry.

Earlier this month, Fine Gael leader Mr John Bruton said Mr Lowry could return to the party once he had settled his tax affairs and paid any debt due to society for any wrongdoing.

The auditors, Butler Brophy Thornton, of Torquay Road, Foxrock, Dublin, stated that there is a "fundamental uncertainty" about the Garuda accounts due to the fact that there are "no satisfactory audit procedures that we could adopt to determine the potential liability arising out of the findings of the tribunal of inquiry".

The McCracken tribunal, which reported in August 1997, disclosed that there had been undeclared payments by Mr Ben Dunne and Dunnes Stores to Mr Lowry and his company, Garuda Ltd.

Garuda still supplies refrigeration services to the Dunnes group.

Payments to Mr Lowry and his company, which trades as Streamline Enterprises, are also being investigated by the Moriarty tribunal. While the additional payments discovered by that tribunal are not significant when compared to those discovered by McCracken, it is understood that the Revenue is not going to settle until the tribunal has issued its report.

That may happen later this year or early next year.

Mr Lowry is understood to have made a partial payment, but his offer to make a full and final settlement has been rejected.

He fears the Revenue may eventually seek to prosecute him. Mr Lowry told the Dail in 1996 that he had availed of the 1993 tax amnesty.

The Tanaiste, Ms Harney, has sent a report prepared by an authorised officer into Garuda to the Director of Public Prosecutions, the Revenue Commissioners and the Moriarty tribunal.

The accounts for Garuda for the year ended December 31st, 1998, the latest accounts filed by the company, show the accumulated profits increased from £43,146 in 1997 to £70,989 the following year.

The annual return for the year to December 24th, 1999, gives the indebtedness of the company as £76,729.

The directors of the company are Mr Michael Lowry, Mr Patrick Lowry and Ms Catherine Lowry.

In their notes, the auditors stated they were appointed to the company in July 1997, which was during the sittings of the McCracken tribunal. "Following on our appointment, we were notified by the previous auditors that subsequent to issuing their audit report on the financial statements of the company for the year ended December 31st 1995, they became aware of certain matters, namely the report of the tribunal of inquiry, which would have a fundamental effect on those financial statements and related tax returns."

Oliver Freaney & Co were formerly auditors to Garuda. The company also audits the Dunnes Stores accounts.

"They were unable to form any opinion as to what adjustments are required to be made to the accounts previously audited up to 31st December 1995."

Accounts for 1997 in the Companies Office show Garuda as having made more than £70,000 that year, by far the best recorded year for the company since it was incorporated in 1989.

Since incorporation, its profits have alternated from profit to loss almost on a yearly basis, according to the filed accounts.

The balance for the period 1989 to 1997 is a loss of approximately £34,500.

Mr Lowry, who is now an Independent TD, is also a director of Abbeygreen Consulting Ltd and In-Store Cooling Ltd.