THE Government decided yesterday to release £17 million in securities to Goodman International bankers which was being held pending an investigation into a series of deals by the meat company disrupted by the Gulf War.
Government sources indicated that the £17 million is part of a £30 million export refund security package which came under scrutiny when the beef involved could not be delivered to Iraq after UN sanctions were imposed there.
The beef had been destined for that market, and the Department of Agriculture had advanced export refunds to the company to facilitate the deal. When the deal fell through, the beef had to be directed to other markets where the levels of EU export refund subsidy were lower than for the Iraqi market.
The Department and the EU conducted a lengthy investigation into the issue nearly a year ago and the matter was virtually resolved when former company employees gave information to Government Ministers which brought about another investigation.
A further investigation found no evidence of improper conduct and £17 million was due for release to the banks which put up bonds to cover the subsidies which are paid at the time of shipment by the EU.
Goodman International did, however, admit to some procedural breaches on its part relating to the shipments, and the EU imposed a disallowance on the company of £7.3 million, which was recouped from the securities.
The way has not yet been cleared for another £6 million to be released as discussions are continuing between the company, the Department and the EU. However, last night sources in the industry indicated that this £6 million is likely to be refunded to the company's bankers shortly.