Passport scheme loophole to close

THE Government is to move to close the legal loophole which allowed the controversial passports-for-sale scandal to take place five years ago.

Among the 200 people who received an Irish passport under a controversial passports for investment scheme, which was suspended in 1996, are known criminals such as Viktor Kozeny, who is wanted for massive fraud by authorities in the Czech republic.

Under the same scheme, then Taoiseach Charles Haughey handed over 11 passports to Sheikh Khalid bin Mahfouz over dinner in the Shelbourne Hotel on December 8, 1990, the day after naturalisation papers were signed by then Justice Minister Ray Burke.

Mr bin Mahfouz is a Saudi business magnate who was closely connected to the collapsed and scandal-hit BCCI bank, and is a brother-in-law to Osama bin Laden.

Following the introduction to the Seanad last night of a private members bill on the issue by Independent Senator Fergal Quinn, Justice Minister Michael McDowell said he would move to close the legal loophole in the new year.

The Seanad bill proposes that the power to award passports without the standard criteria being met be withdrawn from Justice Ministers.

“The present situation is there is no regulation, no statutory obligation on a Government to do anything. It can and is entitled to issue passports without control if the Minister for Justice chooses,” said Mr Quinn.

A spokesman for Mr McDowell said the minister agreed with the purpose of the bill but added that Department of Justice officials believed there were serious flaws with the current wording.

However, Mr McDowell is committed to introducing his own bill to address the issue in the new year.

“The minister agrees with the principle and will introduce an amending bill next year,” said the spokesman.

The Department of Justice drew criticism from opposition parties for failing to publish a report into the passports for sale scandal, more than three years after it was completed.

The controversy was renewed last year when Foreign Affairs Minister Brian Cowen admitted he couldn’t revoke passports granted under the scheme. It subsequently emerged that three of the batch of 11 given to Mr bin Mahfouz by Mr Haughey have since been renewed.

All files relating to the scheme, including details of the 11 given to Mr bin Mahfouz, are with the Moriarty Tribunal, which is investigating the possibility of payments for favours to Charles Haughey.