Bovale Developments and National Deposit Brokers are among 153 firms registered in the Companies Office as having not kept proper books of account.
Auditors who believe a firm has not or is not keeping proper books of account are obliged to lodge a notice, called a H4, to that effect with the Companies Registration Office (CRO).
The Office of the Director of Corporate Enforcement (ODCE) is notified of each H4 filed and makes inquiries into the firm, which can lead to summary prosecutions or files being sent to the Director of Public Prosecutions.
During the 1990s, the CRO would receive about 10 such filings each year but this has risen to about 50 per year. A check at the CRO by The Irish Times found 153 firms against which such filings have been made. Many are not widely known and have been dissolved or are in receivership.
On November 1st, the ODCE secured two convictions in the Edenderry District Court against Mr Patrick and Ms Josephine McCormack, directors of Cameo Company, of Tullamore, Co Offaly. A H4 against Cameo was lodged in July 2000. Fines totalling €900 for company law offences were imposed on Mr McCormack. No fines were imposed on Ms McCormack.
A H4 was filed on National Deposit Brokers on July 9th by auditors Hogan & Associates, Rathfarnham, Dublin 14. Two weeks later it emerged the Central Bank had conducted an inquiry and told the Dublin financial advice firm that if it did not close voluntarily it would be de-authorised by the Central Bank. The company closed voluntarily. It was stated then that client funds were safe and the issues that led to the closure had been brought to the Central Bank's attention by the company. The nature of the issues were not revealed.
The notice concerning Bovale was filed in August 2000 by McGrath & Co, Pembroke Row, Dublin, auditors to Bovale. The ODCE recently searched a premises linked to Bovale as part of its inquiry into the firm.
The Flood Report identified Bovale as a firm that had been involved in making corrupt payments to the former Fianna Fáil TD, Mr Ray Burke.
It has made payments of at least €10 million to the Revenue arising out of revelations made at the Flood tribunal.
The accounts for the year to June 2001, filed by McGrath & Co, carry a warning on the scope of the audit.
