A HIGH Court judge has agreed to extend to the end of this year the investigation by the Director of Corporate Enforcement and Garda into Anglo Irish Bank after being updated yesterday on the progress of the inquiry.

It is hoped most of the investigation will be completed by the end of December, the court heard. The enactment of new laws under which reluctant witnesses in such investigations can be compelled to give evidence – the Criminal Justice Bill, 2011 – is also imminent, having passed the Seanad yesterday after previously passing all stages in the Dáil.

Counsel for the Director of Public Prosecutions, Una Ní Raifeartaigh SC, told Mr Justice Peter Kelly yesterday she was in court to assist it on issues concerning the investigation, and the DPP was acutely aware of the need for expedition in the inquiry.

While the normal approach of the DPP is to receive a file only on completion of an investigation, the nature of this investigation had led the DPP to adopt a modular approach where he was regularly updated and received reports on various issues being investigated, counsel outlined.

Paul O’Higgins SC, for the Office of the Director of Corporate Enforcement, told the judge substantial progress was being made but his client believed setting a deadline for completion of the probe could be “counter-productive”.

Granting the extension, Mr Justice Kelly said the collapse of Anglo had devastating consequences for individuals, the State and this country’s business reputation internationally. A comprehensive investigation was required, he said.

The High Court was involved only because orders were required to allow for an extended power of seizure over documents taken from Anglo, and the court had discretion whether to grant or refuse that. The law required the court to be aware of the progress of the investigation.

This was why, last May, he had expressed misgivings about the progress of the inquiry and sought to be updated, he said. He had now received fuller information and was told it was believed most of the investigation would be completed by the end of this year, subject to caveats. He was also told new laws allowing for reluctant witnesses to be compelled to attend for interview would be soon enacted.

In all those circumstances, he would extend the powers as sought.

Earlier, the judge heard that a file concerning a loan to a particular Anglo director, sent to the DPP in December 2010, had been evaluated by the DPP and is with counsel for consideration.

A file on another crucial issue in the inquiry – transactions by Anglo directors at the end of some financial years – was substantially complete and was expected to be sent to the DPP within 14 days. That issue relates to the suspected failure of the bank to maintain a register of directors’ dealings with it and suspected withholding of information from auditors.

The investigation has since revealed additional refinancing transactions plus a level of complexity concerning such transactions was not previously evident, the court heard.

A file on “back-to-back” deposit arrangements with Irish Life Permanent for the benefit of Anglo at the end of its financial year in 2008 had been sent by the Garda Bureau of Fraud Investigation to the DPP, who has sent that to counsel, it was also stated. A second file on that issue was sent to the DPP last May.

Earlier, the judge was told by Mr O’Higgins certain persons regarded as key witnesses in the inquiry had refused to attend for interview or provide statements. Shane Murphy SC, for Anglo, said those individuals are not current employees of the bank.