Leo edict to ministers: Get tough on white-collar criminals
Taoiseach orders major reform of the law which would give whistleblowers immunity
LEO VARADKAR has ordered his ministers to introduce a raft of new laws to enhance the chances of convicting whitecollar criminals.
The new Taoiseach wants insider informants to have full immunity for white-collar crime trials; a new unit to look at serious and organised crime, and is considering a special unit in the DPP’s office.
The Taoiseach has written to his ministers for Justice and Enterprise, seeking a package of measures for successful prosecutions of white-collar criminals, the Irish Mail on Sunday can reveal.
In perhaps the most controversial measure, Mr Varadkar advocates the introduction of whistleblower protections for white-collar trials.
He wants new Justice Minister Charlie Flanagan to ‘legislate for a formal structure for granting immunity to those suspected of white-collar crime’ to help suppress and prosecute criminal activities.
This, he says, would require clearly defined criteria and
‘Immunity restricted to the first person’
suggests that ‘such immunity could be restricted to the first person to come forward’.
The recent trial of former Anglo Irish Bank chairman Seán FitzPatrick exposed significant failings at the Office of the Director of Corporate Enforcement, the body charged with pursuing white-collar criminals.
Mr Varadkar has written to Mr Flanagan and Frances Fitzgerald, the new Enterprise Minister, seeking law changes and corporate governance enhancements.This follows a number of high-profile prosecution failures.
‘There is ongoing public concern about the investigation and prosecution of white-collar crime,’ writes Mr Varadkar in a letter to Ms Fitzgerald that has been seen by the MoS.
‘There is a need to review the processes and procedures, so that such crime can be more effectively investigated and, where appropriate, prosecutions taken.’
He adds that her department and the Department of Justice have been ‘preparing various proposals in this area’ and says he wants to give ‘added impetus to this and also explore what other changes might be made’. He has requested a package by September.
‘Worth considering are changes in corporate governance, in particular stewardship by institutional investors and potentially oversight by a financial reporting council,’ he writes.
He says the investigative and trial processes must be ‘streamlined’ to make them ‘more efficient and effective’.
The two ministers were provided with a detailed ‘discussion document’.
Mr Varadkar also suggests an environmentally friendly but sensible change to the ‘rules of evidence’ for investigators and lawyers to allow computer-generated business records to be admitted – ‘where they satisfy general standards of reliability’ – rather than printing everything out.
Mr Varadkar also believes our laws on the admissibility of evidence are needlessly complex, adding that the ‘ability to admit into evidence… potentially relevant and incriminating documents is a very real consideration in deciding whether to bring charges in complex fraud trials.’
He says the Government will also legislate for a ‘pre-trial process’ to allow the court to ensure issues are clarified before trial and to direct how they should be explained to a jury’.
The Taoiseach also wants to deal with third-party disclosure and admissibility of evidence and to direct the preparation of statements by each side, setting out the nature of the prosecution and defence cases.
This would allow a more focused trial process.
The Garda Síochana has come in for criticism in many areas in recent times and it is believed the Garda Fraud Squad is underfunded.
Ministers will ‘review and reform existing structures within the Garda’.
Mr Varadkar is considering setting up a unit with the expertise to ‘tackle organised crime, cyber crime, serious fraud and suspicious financial transactions’.
He also wants a review of structures within the Office of the Director of Public Prosecutions. The Government could ‘potentially allow the DPP to make appropriate directions at an earlier stage in the investigation of white-collar crime. A new specialist division with the DPP could be considered’, he says.
Mr Varadkar, who met with British prime minister Theresa May last week, has looked to the UK for guidance.
‘The two most critical aspects of the UK oversight regime do not apply in Ireland: adequate stewardship by institutional investors and oversight by a financial reporting council.
‘It would make sense for the Irish Central Bank to take on the stewardship function for the funds sector here.’
‘Streamline trials to increase effectiveness’