Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Question 71: To ask the Minister for Transport if he will publish in full the response he received to a memorandum, dated 4 May 2008, relating to Shannon Foynes Port, County Limerick (details supplied); if he will establish a departmental investigation based on the findings of the Deloitte report; and if he will make a statement on the matter. [6847/10]

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I have already dealt with this matter in detail in the House on 9 December last in response to a priority question from Deputy O'Dowd. Allegations regarding corporate governance misconduct in Shannon Foynes Port Company first arose in 2006. Throughout this controversy my predecessor and I were, as shareholders, kept informed by the company. Our advice was that the matter was best left to the company to deal with internally.

Regarding the Deloitte report, my legal advice is that I must respect the confidential basis on which the report was given to my Department. The report contained a number of recommendations for improving corporate governance procedures in the company and the board has confirmed that these have been implemented. Furthermore in September 2008, I appointed a new chairperson and five other directors to the board of the company to provide renewed leadership and strategic direction to the company.

With regard to the memorandum referred to in the Deputy's question, access to most of the response I received from my Department was granted to the Deputy under the Freedom of Information Act. Under the Freedom of Information Act, the Department is prohibited from releasing certain information, such as legal advice.

As stated previously, I am aware that some matters relating to the company have been brought to the attention of both the Garda Síochána and the Office of the Director of Corporate Enforcement.

I received letters making allegations which I brought to the attention of the Office of the Attorney General, the Office of the Director of Corporate Enforcement and the Garda.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Is it not a fact that on 2 May 2008 the Minister wrote the following in a memorandum?

"Is there any truth in the story that land sold to a private Co. was not sold in accordance with proper governance procedure + that the land was subsequently sold for c. €12m? Copies of the newspaper [Limerick Leader] report, please."

The Deloitte report into this and other activities in the Shannon Foynes Port Company found that there was no competitive tendering in the sale of the site; there was no public auction; there was no proper valuation; and there was no record of board approval to enter negotiations. We now know that a company bought that site, which was valued without proper valuation. It was sold two and a half years later for €12 million. There are serious and significant issues regarding corporate governance. An internal memorandum within the organisation that has been brought to my attention states: "Koala (to the sounds of violins and heavenly Choirs) and hopefully this is teed up for you to make the kill." The Koala site was 16.6 acres of land that was sold without due and proper process. It is not acceptable that the Minister will not institute, as this request is, a departmental inquiry into what happened, why it happened and who benefited. I do not accept the Minister's answer is adequate.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I am aware of all of the matters the Deputy has adverted to, including the newspaper reports and other information the Deputy has, apart from the latter one. All of this went to the bodies that should investigate if there is wrongdoing, including, first, the board itself. We have had a newly constituted board since September 2008. The issues of alleged fraud and anything else are matters for the Garda. Issues regarding corporate enforcement should be passed to the Director of Corporate Enforcement. We have done all that and investigations, as I understand it, are not proceeding on the basis of any of the complaints that have been made.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I do not accept the Minister's response. What is blacked out, and the piece I want, is the reply the Minister got on the sale of those two sites. I accept legal issues cannot be given to me. The piece that is blacked out under the heading "Review of the two property transactions" is what I want to know. What was written for the Minister? What was his report? What does he know that he is not telling us?

The Minister is also aware that a boat was hired for two years by the company. It was decided that an executive of the company would make the decision on the successful tender. The file is missing and the successful tenderer was the official of the company who made the decision to give it to himself. Is it not time for this to go a stage further and for the Minister, as the only shareholder in Shannon Foynes Port Company, to insist that all these files and all the information, which he has and some of which I have obtained recently, should go to the fraud squad? Is not time to call in the Criminal Assets Bureau? Some 16.6 acres of the most valuable land in Foynes harbour is gone and somebody made a killing on it. It is not good enough that the Minister can pass it off. He should be proactive in insisting that the Criminal Assets Bureau gets involved.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

As I have already informed the Deputy, I brought all the allegations I received on the matter, which are in the public domain and which the Deputy is repeating, to the attention of both the Garda and the Directorate of Corporate Enforcement. The Criminal Assets Bureau is a unit of the Garda and it is free to investigate the matter if it feels there is a case to investigate. Regarding the memorandum I received back-----

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

It is blacked out.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Regarding what is blacked out, under the Freedom of Information on each one of those, I had no hand, act or part in deciding what went back to the Deputy. Regarding the freedom-----

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The Minister knows what is in it. Will he not tell us what is in this report?

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Allow the Minister to reply.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The Minister should be accountable to the Dáil.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Regarding this file, the parts that are blacked out are blacked out in accordance with the laws of the land and I had no hand, act or part in that.