The bank which controlled the Ansbacher deposits for many years is taking legal action in the Cayman Islands today to try to stop an investigation launched by the Tanaiste.
Ansbacher (Cayman) is expected to argue in court in Grand Cayman this morning that the authorised officer appointed by Ms Harney should not be allowed access to the details it holds on the controversial deposits.
Late last year Ms Harney appointed Mr Gerard Ryan, a senior civil servant with her Department, as authorised officer to investigate aspects of the activities of Ansbacher (Cayman) in Ireland. The Cayman Islands bank controlled funds, the so-called Ansbacher deposits, held in two Irish banks for many years. At one stage they contained up to £30 million.
As part of a follow-up to the McCracken tribunal report the Tanaiste instigated inquiries into the Ansbacher deposits to ascertain whether their operation in Ireland involved any breaches of company law.
Ms Harney appointed Mr Ryan as authorised officer to Guinness & Mahon and Irish Intercontinental Bank, the two banks in which the accounts were held in Ireland, as well as Hamilton Ross and Ansbacher (Cayman), the two Cayman Islands institutions which controlled the money.
She is understood to have been advised that she was able to appoint Mr Ryan as officer to the overseas institutions because they operated in Ireland.
However, Ansbacher (Cayman) is expected to argue in court in Grand Cayman today that the Tanaiste did not have the power to appoint an authorised officer to seek information from it. The representatives of the Department of Enterprise, Trade and Employment will argue that she was empowered to appoint Mr Ryan and that he is able within Irish law to seek information from the bank.
Several senior civil servants, including the authorised officer and the head of section, have travelled to Grand Cayman for the hearing.
Ansbacher (Cayman) inherited control of the deposits when it purchased the Cayman Islands operation of Guinness & Mahon bank in the mid-1980s. Guinness & Mahon's Cayman Islands operation was established in the 1970s by the late accountant, Mr Des Traynor, who was a financial adviser to the former Taoiseach, Mr Haughey.
The McCracken tribunal established that part of Mr Haughey's living expenses were paid out of the Ansbacher deposits. Funds owned by other Irish residents were also contained in the deposits.
Following the McCracken report, the Tanaiste appointed Mr Ryan as authorised officer to examine the affairs of Celtic Helicopters, in which the former Taoiseach's son, Mr Ciaran Haughey, was a major shareholder. The company had benefited financially from the Ansbacher deposits.
Mr Ryan advised that he needed access to further details of the Ansbacher deposits to complete this investigation. He was then appointed as authorised officer to the four financial institutions.
