Between six and 12 serving Irish soldiers are understood to be identified in a report on alleged illegal trafficking of duty-free tobacco and alcohol from UN bases in Cyprus.
The report resulting from an internal UN investigation was delivered yesterday to the Minister for Defence, Mr Smith. A copy was also sent to the Defence Forces Chief-of-Staff, Lieut Gen Dave Stapleton.
Details of the report are being withheld, but it is understood to say that Irish soldiers were involved along with soldiers of at least two other nationalities in the illegal resale of duty-free alcohol and tobacco over an 18-month period more than a year ago.
Sources put the total amount of illegally sold goods at around £1 million but say the total amount of alcohol and tobacco said to be handled by Irish UN troops was only in the region of £50,000. Most of this was purchased by soldiers from two stores run by the British military. It is believed the goods were then resold to civilian hotels and clubs in Cyprus.
The goods were bought from the NAAFI (Naval Army Air Force Institute) stores at UN bases in Cyprus. These stores are licensed to sell duty-free goods to soldiers serving abroad, but their resale is forbidden under UN regulations.
The investigation is understood to have determined there was organised trafficking in alcohol and tobacco. Considerable profits can be made on the resale of goods as a litre of tax-free Irish whiskey can be bought for $8, about £5, and a carton of 200 cigarettes for $6.
Military sources were uncertain yesterday about what action, if any, will be taken as a result of the UN report. The resale of the goods breaches UN regulations, but any criminal prosecution would arise only in the event of a complaint from the Cypriot authorities about duty evasion. If there was a complaint from the Cypriot authorities, the investigation could be continued here by the Garda.
In a statement yesterday the Minister said he had received the report "regarding the abuses of duty-free privileges by members of the Permanent Defence Forces serving with the UN peacekeeping force in Cyprus (Unficyp)".