Inquiry finds new evidence on deposits

Investigations of the Ansbacher deposits by the authorised officer appointed by the Tanaiste are understood to have uncovered detailed new evidence on the workings of the accounts. These indicate that the operation of the deposits was much more far-reaching than suggested by the report of the McCracken Tribunal. However considerable further work is required. The authorised officer appointed by Ms Harney, Mr Gerard Ryan, has already received detailed information from Guinness & Mahon and Irish Intercontinental Bank, the two banks in which the Ansbacher deposits were held. In the weeks ahead he is likely to be seeking supplementary information from the two banks, as he follows up lines of inquiry. anaiste , Ms Harney indicated on RTE television earlier this week that the officer had uncovered new information in relation to Celtic Helicopters. His wider inquiry of the workings of the deposits is also believed to have uncovered important new information linking the deposits to a range of business figures.

However, in some cases the relationship between the business people and the Ansbacher deposits may not be clear and is likely to be the subject of further investigation. Over the years since the accounts were set up in the 1970s, substantial sums of money - perhaps running into hundreds of millions of pounds - passed through them. But only a portion is likely to be the subject of detailed investigation, as much may relate to ordinary business transactions.

Mr Ryan received a large volume of information from Guinness & Mahon, in response to his initial request. Irish Intercontinental Bank, having initially sought to challenge the officer's right to ask for the information, later handed over documents in its possession.

Among the options open to Ms Harney as the investigation proceeds are the forwarding of any information uncovered to the relevant authorities, such as the Revenue Commissioners or the DPP. She could also initiate a prosecution herself for any alleged breach of company law over the past three years.

Another option is to seek the appointment of an inspector to any institution under section 8 of the 1990 Companies Act in a case where she believes that more powers of investigation are needed to uncover the necessary information.

A number of people are expected to be identified by the bank documentation as depositors in the Ansbacher accounts.

The deposits were used in some cases to "back" or guarantee loans and the motivation for these transactions is likely to be examined by Mr Ryan. This "back to back" lending involves funds in a deposit account being used to guarantee loans and is believed to have been a feature of the Ansbacher deposits.

The McCracken tribunal heard that funds donated by Mr Ben Dunne to the former Taoiseach, Mr Charles Haughey, ended up in the Ansbacher deposits. Payments were made from the deposits to support Mr Haughey. However, the tribunal report made clear that a number of other Irish residents were also depositors and that while, in some cases, they may have had legitimate reasons for the holdings, in others tax evasion may have been the motivation.