The Office of the Director of Corporate Enforcement (ODCE) is to be overhauled following criticisms of its performance, including its role in the collapse of the case against Sean FitzPatrick.
The Government will on Thursday publish a report on tackling white collar crime, and it contains proposals for an overhaul of the ODCE. It says legislation to give effect to the changes will be passed through the Oireachtas by the summer of 2019.
The report , "Measures to Enhance Ireland's Corporate, Economic and Regulatory Framework", will be published by Tánaiste and Minister for Jobs Frances Fitzgerald, Minister for Justice Charlie Flanagan, Minister for Finance Paschal Donohoe and Minister for Transport Shane Ross.
Ms Fitzgerald, in her previous role as minister for justice, earlier this year described the ODCE as "not fit for purpose" because of the collapse of the case against Mr FitzPatrick, the former Anglo Irish Bank chairman.
She said the collapse of the trial was an “absolute disgrace” which caused an “absolute sense of outrage from the public over the lack of accountability”.
In directing the acquittal of Mr FitzPatrick, Judge John Aylmer strongly criticised the ODCE's investigation.
Shortcomings
While not specifically naming Mr FitzPatrick, the new Government report notes Judge Aylmer’s concerns. “While it is crucial to identify and learn from any shortcomings in the investigative process, such as those identified by Judge Aylmer, it is also important to recognise the valuable role the ODCE has played and continues to play in facilitating compliance and enforcement of company law.”
It adds that the Government “has decided to establish a new independent agency to greater enhance the State’s ability to undertake modern, complex corporate law enforcement”.
The new renamed ODCE will be allowed recruit more specialist staff, and will be recast to “give it a similar structure to a commission” rather than a normal State agency. This effectively means that a chief commissioner will be in charge of the new organisation, with other assistant commissioners designated specific areas of responsibility.
Procedural issues
The way in which An Garda Síochána would work with the new agency will also be examined. "The competence to prevent, detect, investigate and prosecute corruption is spread across An Garda Síochána and a number of other agencies with a mandate to tackle corruption. It is timely now to look at the roles each agency plays, and to examine procedural issues in this area."
A so-called “joint agency taskforce” to tackle crime in specific areas will also be established on a pilot basis. The first such taskforce will examine payment fraud – including invoice redirection fraud and credit card fraud – and will feed into “a wider review of the effectiveness” of State bodies when engaging with fraud and corruption.