Wallace faces further financial scrutiny

Embattled TD Mick Wallace faces further scrutiny of his finances after being forced out of the Independents’ Technical Group over his failure to declare €1.4m owed in Vat.

The Wexford politician, who is now an isolated figure in the Dáil, could face an investigation by an Oireachtas committee over his reluctance to pay money owed to Revenue since being elected last year.

Mr Wallace’s initial bid to explain his situation openly in the Dáil was shot down by ceann comhairle Sean Barrett yesterday on the basis that it did not fall within the remit of the section of Dáil standing orders quoted by the TD.

Party whips are expected to meet today to discuss options for his tax affairs to be debated in the Dáil. This could include a motion of censure against Mr Wallace.

Fellow Independent TDs moved against him over the weekend, culminating in his forced resignation from the technical group yesterday.

Group whip Catherine Murphy said she had met Mr Wallace and asked him to step down voluntarily.

A statement about the request to step aside was signed by 10 other members of the group.

It was not signed by any of the five United Left Alliance TDs, who are also part of the technical group.

Ms Murphy said: “It’s welcomed by all of us that he has agreed to step aside. Due process has to now take its course, whether it is committees in the Dáil or other arms of the state.

“I made it very clear to him that obviously, the issue of his tax affairs were a major cause of concern to the group.”

Mr Wallace’s construction firm — MJ Wallace Ltd — has made a €2.1m settlement with Revenue. His company was found to have undeclared Vat liabilities on returns amounting to €1,418,894 for 2008 to 2009.

Mr Wallace says he is not in a position to pay the money.

A Revenue tax defaulters list due out today will include details of his position.

The Oireachtas Members Interests Committee will decide tomorrow if it has the remit to further probe Mr Wallace’s tax affairs.

Even though the period in question pre-dates his election, it is understood the committee may have the right to probe his case, under ethics legislation, as it remains unresolved while he is a member of the Dáil.

The committee may also have the discretion to hold any hearings on the matter in public. Normally, it sits in private.

Committee chairman Thomas Pringle said: “At our meeting on Wednesday, we’ll look at the matter and get legal advice on how to proceed. Then we’ll make a statement.”

The committee, made up of cross-party members, has the right to recommend the censuring of a politician as well as their suspension from the Dáil for up to 30 days.

Meanwhile, Government chief whip Paul Kehoe is considering a request by Ms Murphy for a discussion on Mr Wallace’s tax matters in the Dáil this week. Options will be discussed today with other party whips and could include a vote on a censure against him, essentially a black mark against his name.