Government’s ‘no comment’ on OLAF probe
Finance Minister Charlie McCreevy has been informed by the Commissioners that an investigation is being conducted.
It is examining the circumstances surrounding the application, issue and use of General Agreement on Tariffs and Trade (GATT) licences by the companies.
The companies had used these licences to import beef from South America into the Netherlands and Italy at a reduced rate of duty.
The investigation was initiated by the Revenue Commissioners following a request from OLAF.
Minister McCreevy, responding in a written reply to a question in the Dail from the Labour Party TD Liz McManus, said the agency brought certain matters to the attention of the Revenue Commissioners at a meeting on February 4, 2003.
Deputy McManus had asked if the Commissioners were conducting an investigation with OLAF into the loss of customs revenue arising from the possible misappropriation of GATT licences to connected companies under EU regulations, relating to meat importation.
Minister McCreevy, confirming that an investigation was being conducted, said it was too early to say when it was likely to be concluded.
“I am informed that it is currently being actively pursued and will be brought to conclusion at the earliest possible date,” he said.
In a subsequent reply, Minister McCreevy told Deputy McManus it would be inappropriate to comment publicly on specific details, for fear that the outcome of the investigation could be compromised.
It is understood that officials from OLAF visited Dublin, after a complaint was made to it about alleged connections between the 16 Irish companies. It is illegal for connected companies, including those with common shareholders or which have common management or premises, to apply for more than one beef importation licence.
The Department of Agriculture and Food told the EU Commission last year that there were no connections between the companies.
Minister Joe Walsh, replying to a Dail question by Deputy McManus, said his Department is not conducting an investigation into any aspect of GATT licences.
But there was correspondence dated July 7, 2003 between the European Commission and some member states concerning the number of operators approved under the GATT frozen beef regulation.
The Commission asked member states to proceed to a further examination of the applications, and to address specific questions relating to these applications.
Minister Walsh said the questions related to proof of beef sector activity in 2003 by the applicant companies, contact, VAT and company registration details.
The Commission also asked member states if a comparison had been made between the list of applicants in 2003 with the list for the previous year, to establish that the companies were not connected in terms of management, staff and operations.
“My Department provided a comprehensive reply to the Commission by letter dated July 18, 2003. There has been no further contact from the Commission in this regard,” he said.
