The auditors of the company behind Atlantic Dawn, one of Europe's largest fishing vessels, have resigned, saying that proper books have not been kept by the business. John McManus reports.
Atlantic Dawn Ltd is owned by Mr Kevin McHugh, the Killybegs-based businessman who made his fortune developing the Irish mackerel fishing industry.
In a statement issued last night the company said it "recently discovered an error in its books and records while carrying out an internal review of its accounts. This error was promptly corrected by the company. The tax authorities were notified and the additional taxes due were paid. The company also notified its auditors following which they resigned."
PriceWaterhouseCoopers re- fused to comment last night. Their resignation was notified to the Companies Registration Office (CRO) on June 18th. On Tuesday of this week the accountants filed another form with the CRO declaring that "proper books of account" had not been kept by the company. The Office of the Director of Corporate Enforcement will now investigate the filing and may bring a prosecution.
The Atlantic Dawn was launched in February 2000. Initially the European Commission refused to allow the €63 million vessel into the European fleet unless other vessels of an equivalent tonnage and engine size were taken out of service.
A compromise deal was hammered out in 2002, but only after the Taoiseach, Mr Ahern, intervened on Mr McHugh's behalf with the EU Agriculture and Fisheries Commissioner, Mr Franz Fischler. The then minister for the marine, Mr Frank Fahey - who is now Minister of State for Enterprise, Trade and Employment - also lobbied on Mr McHugh's behalf as did Ireland's European Commissioner, Mr David Byrne.
As part of the deal, Mr McHugh had to remove one of his other fishing vessels, the Veronica, from the Irish fleet. Earlier this year, Mr McHugh sold the tonnage attached to the Veronica for something in the region of €40 million. Other fishing boat owners complained they were effectively forced to buy Mr McHugh's tonnage in order to keep their vessels on the Irish register.
The Comptroller and Auditor General is currently investigating the project, which could have cost the State up to €100 million, according to the chairman of the Public Accounts Committee, Mr John Perry TD. The other €60 million is the value of tonnage that Mr McHugh was granted when he was allowed register the Atlantic Dawn.