Watchdog to take High Court action against Bailey brothers

THE Office of the Director of Corporate Enforcement has confirmed it is seeking to have two of the country’s most controversial property developers barred from being actively involved in the running of their business.

Michael and Tom Bailey — the self-made millionaire owners of one of the Republic’s leading building firms, Bovale Developments — are facing disqualification as directors of the company.

The Director of Corporate Enforcement, Paul Appleby, said yesterday his office had begun legal proceedings to strip the two brothers of their directorships of Bovale following a lengthy investigation by his officials.

“The matters in question are sub judice and I will be making no further comment pending the conclusion of the proceedings,” said Mr Appleby.

The High Court action is being taken against the Baileys under Section 160 (2) of the Companies Act 1990. The legislation enables the High Court to disqualify any director whom it is satisfied is guilty either of fraud, or a breach of duty or who is unfit to hold such a position within a company.

The case is due to come before the Commercial Court division of the High Court on October 9. A preliminary hearing on the matter already took place on August 8. The Baileys declined to comment on the matter yesterday.

The two brothers, who come originally from Co Roscommon, rose to national attention after they were found to have played a central role in corruption by the Planning Tribunal, especially in relation to the bribing of former Fianna Fáil minister, Ray Burke in 1989.

They were also found to have obstructed and hindered the work of the inquiry as tribunal lawyers discovered major financial irregularities in their business.

It emerged earlier this year that Bovale made the largest tax settlement in the history of the State when it paid a record €22 million in taxes, fines and interest to the Revenue, although it represented a minor setback for the Baileys given the overall value of the business.

Bovale is also one of the country’s most successful building firms with projects worth €600 million currently under construction.

Last year, Michael, 51, and Tom, 45, paid themselves a salary of €5.3 million each.

The two developers are also regular guests at the Fianna Fáil tent at the Galway Races and have strong links with the party.

However, Bovale may still be faced with a multi-million euro bill relating to the costs of the Planning Tribunal.