Gardaí to examine bank accounts in Bulgaria

SPECIALIST garda officers are to fly out to Bulgaria to examine bank accounts held by an Irish businessman arrested last week as part of the investigation into suspected IRA money laundering.

Detectives from the Garda Bureau of Fraud Investigation (GBFI) and the Criminal Assets Bureau (CAB) also want access to any accounts opened by former Government aide, Phil Flynn, who travelled to Bulgaria several weeks ago.

The Bulgarian Interior Ministry yesterday confirmed that Mr Flynn and the businessman, Cork financier Ted Cunningham, travelled together to Bulgaria and rented an office in the capital, Sofia. However, the ministry said there was no evidence to suggest any money had been laundered. “They haven’t committed a crime in Bulgaria,” the ministry’s chief secretary, Boyko Borisov, said.

“They have been here some three weeks ago, they have opened accounts at a local bank and they have put in them the minimum required amounts of 50 each,” Mr Borisov said.

“They intended to invest in building and hired a local lawyer. They haven’t laundered money here.”

It is understood, however, the GBFI, CAB and other garda units want to travel to Sofia to examine the accounts themselves and question business and banking contacts the two men met there.

Mr Borisov said no Irish investigators had yet been in contact with Bulgarian authorities and complained he had only heard of his country’s alleged involvement in a money laundering racket from reporters.

“We haven’t received any official inquiry from them yet,” he said. “They ought to stop talking to us through the media and should contact us through the proper channels. Once they do this, their questions will be answered in 20 minutes.”

Garda sources, however, said officers would have to go through the official channels of contacting Bulgarian authorities to see if they can travel to Sofia as law enforcers given that it is an entirely separate jurisdiction. They are confident, however, that although Bulgaria falls outside the European Union and various police co-operation agreements, they will be able to pursue investigations there.

CAB’s hand has been strengthened recently by the granting of additional powers to confiscate assets abroad which it suspects are the proceeds of criminal activity. “Bulgarian police have been over here and we have been over there on previous investigations, so there shouldn’t be a major problem,” said one source. But he cautioned that the process was legally complex and could take some weeks.

Mr Cunningham, 57, a money-lender and director of 13 companies, was arrested last Wednesday at his home in Farran, Co Cork. Gardaí recovered £2.3 million in a compost bin at the back of the house. His partner, Cathy Armstrong, 44, was also questioned. Both were released without charge and a file is being prepared for the DPP.

One of Mr Cunningham’s companies, Chesterton Finance, is at the centre of garda investigations. Mr Flynn joined the company as non-executive director six months ago.