The Institute of Chartered Accountants in Ireland (ICAI) is to robustly resist an attempt to halt the investigation into possible breaches of professional misconduct by some of its members, named in the McCracken tribunal, according to reliable sources. Accountants Oliver Freaney & Co, which acted as auditor to Mr Michael Lowry's refrigeration business, Streamline, and auditor to Dunnes Stores, has already got a temporary injunction. It is now seeking a judicial review into the manner and procedures in which the inquiry has been conducted. The inquiry, set up by the institute last September, is chaired by retired High Court Judge, Mr Justice Blayney.
It was scheduled for mention in the High Court this morning, but the institute is understood to have sought, and gained, an adjournment. The hearing could take place in about a week's time.
The judicial review is expected to delay the inquiry by one to two months. In addition, the Tanaiste and Minister for Trade, Enterprise and Employment, Ms Harney, is awaiting to outcome of the inquiry before she decides on possible direct regulation of the accountancy bodies by the Government.
Members of Oliver Freaney, and partner Mr Noel Fox, have l already been questioned by the inquiry team. They have also provided documentation.
However, Oliver Freaney pulled out of the hearings ten days ago and gained the injunction because the firm felt that the procedures being adopted were flawed, and, as a result, it was not getting a fair hearing under the principles of natural law. The institute will argue that the inquiry is fit and proper, and that the hearing has been carried out correctly. Up to the time of the injunction, the inquiry was ongoing. Moreover, it had not reached a conclusion, according to the sources.
Oliver Freaney and another firm of chartered accountants, Deloitte & Touche, were joint auditors to Dunnes Stores which paid £1.3 million to the former Taoiseach, Mr Charles Haughey. Mr Paul Carty, managing partner of Deloitte & Touche and a witness at the original McCracken tribunal into payments to politicians, has already given evidence to the inquiry along with tax partner Mr Pat Kenny who gave Mr Haughey tax advice. The inquiry was set up by the institute in October 1997. The hearings were in private but the institute has said it will publish its findings. Apart from Mr Justice Blayney, the inquiry team consists of Mr Brian Duncan, a fellow of the Institute of Actuaries, and Mr Paddy Shortall, an insolvency expert and a director of a number of companies.
Ms Harney had called on the accountants to act on the McCracken Tribunal findings in an open manner. The ICAI has responded with new proposals which will lead to public hearings of the disciplinary committee, such as the Blayney inquiry.
