NEW GOVERNMENT WATCHDOG CRACKS DOWN ON WHITE COLLAR CRIME
Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, Minister for Justice Helen McEntee, and Minister of State for Trade Promotion, Digital and Company Regulation Robert Troy T.D. have established a new watchdog to crack down on corporate wrongdoing today.
The Corporate Enforcement Authority (CEA) is a new statutory and independent agency with the staff and resources to investigate and prosecute breaches of company law.
On the announcement, Varadkar said: “Today is a really important day for corporate enforcement in Ireland. The Corporate Enforcement Authority is now officially established. We’re giving it real teeth, making sure it has the autonomy and resources to thoroughly investigate suspected wrongdoing, such as fraudulent trading and larger, more complex company law breaches. We’re increasing staffing levels by nearly 50%, including doubling the number of Gardaí. The Authority’s budget has also been increased by almost 30%.
“I am confident that the extra staff and additional funding will ensure that the new Authority can really make a difference and meet the differing and evolving demands of its remit, which includes investigation, prosecution, supervision and advocacy”, he continued.
Ireland “No Safe-Haven” for White Collar Crime
In preparation for the establishment of the CEA, the budget of the ODCE has been increased by about €1 million and the Department of Enterprise, Trade and Employment approved 14 additional civil servants to be assigned to the Authority to enable it to function properly. This will be an increase of 20% in the level of funding to the ODCE and an increase of 35% in the number of civil service staff.
The Garda Commissioner has committed additional Garda Síochána resources being landed to the CEA. The members of An Garda Síochána assigned to the CEA will increase from 7 to 16. The total increase in the overall headcount for the new CEA will be nearly 50% over previous levels.
The importance of adequately resourcing the CEA is also set out in the Implementation Plan arising from the Hamilton Review Group. The Implementation Plan commits to identifying the relevant Garda resources to be seconded to ODCE/CEA.
The Minister for Justice Helen McEntee said: “While a small country, we are a global centre for financial services with the size of the financial sector here continuing to grow significantly in recent years. Corruption and ‘white collar crime’ damages our economy, breeds cynicism in our society and is a threat to our international reputation. When ‘white collar’ criminals undertake their enterprises in Ireland, they must be reminded, in no uncertain terms, that Ireland is no safe-haven and offenders will be prosecuted”.
She added: “The significant investment in an independent and more powerful Corporate Enforcement Authority will strengthen our deterrence and is yet another demonstration of the Government’s commitment to tackling crime.”
Tackling Corporate Crime
Minister of State for Trade Promotion, Digital and Company Regulation Robert Troy said: “The establishment of the new Authority will ensure consumers and businesses have confidence that alleged breaches of company law will be effectively investigated and prosecuted”.
Corporate and white collar crime continue to be a major issue in Ireland, and one which the Irish public are concerned about, necessitating a watchdog. As part of their plan to tackle corporate crime, the Government will continue to work on new measures to tackle economic crime and corruption through the cross-Government Implementation Plan. New powers and other enhancements for the new Authority are continuing to be actively considered.
What does the Act entail?
The orders creating the Companies (Corporate Enforcement Authority) Act and the establishment of the watchdog Corporate Enforcement Authority (CEA) were signed by the Tánaiste between the 5th and 6th of July.
The Act gives the CEA the same functions and powers that the Director of Corporate Enforcement has, with some modifications to reflect the new commission structure. These powers include encouraging compliance with the Companies Act 2014, investigating suspected corporate crimes and non-compliance under that Act, prosecuting offenders, and the exercise of certain supervisory functions with respect to liquidators and receivers.
The Act provides for up to three full time commissioners, one of whom would be designated as Chairperson of the CEA. It is designed to give the new authority the flexibility to structure itself in future to meet the differing and evolving demands of its work, which includes investigation, prosecution, supervision, and advocacy, and along clear lines of responsibility.
Reporting: Irish Tech News