The Department of Justice is to establish a statutory inquiry into allegations of Garda misconduct made by the former chief executive of small business lobby group Isme.
Frank Mulcahy, who was removed from the position in 1998, has previously alleged ongoing negligence by gardaí in their investigations into an alleged fraud at Isme at that time.
Last year it emerged the Department of Justice was considering a non-statutory inquiry into the claims.
However, following the recommendation of the panel of the Independent Review Mechanism it is now going to be upgraded to a statutory inquiry.
Mr Mulcahy has claimed the Garda Bureau of Fraud Investigations has continually refused to address his reports in relation to an investigation into the fraud of which he was accused when employed by Isme.
The bureau sent the report of its investigation to the DPP in 2010 without having taken statements from him or former Isme chairman Don Curry, claims Mr Mulcahy.
Minister for Justice Frances Fitzgerald is to consult with the Attorney General regarding the scope of the inquiry and its terms of reference.
Mulcahy campaign
Mr Mulcahy has been campaigning to clear his name for many years. He vehemently denies any wrongdoing in relation to the group’s accounts and says the allegations were judged to be untrue when independently investigated.
Current chief executive of Isme Mark Fielding said he had no comment to make on the inquiry.
A department spokesman said: “In a small number of cases dealt with under the Independent Review Mechanism (IRM) process, the outcome of the review was that some further form of inquiry should be undertaken. Having considered the issues in those cases the Minister decided to initiate an inquiry in relation to each of them based on the recommendations from the IRM.
“The individuals in question have been informed of the Minister’s decision in this regard. The Minister is consulting with the Attorney General about the terms of reference for each inquiry and to identify suitable persons to carry them out. When this consultation process is completed the Minister will be writing again to the individuals in question.”