TÁNAISTE PUBLISHES INSPECTOR'S REPORT ON BULA RESOURCES (HOLDINGS) PLC

Mary Harney, Tánaiste and Minister for Enterprise, Trade and Employment, this evening (Wednesday 22nd July, 1998) published the Report of the Inspector, Mr Lyndon MacCann, B.L., which was provided to her this afternoon.

Mr MacCann's remit under section 14 of the Companies Act, 1990 was to establish the beneficial ownership of certain shareholdings in Bula Resources (Holdings) plc. The Tánaiste has expressed her gratitude to Mr MacCann for carrying out a comprehensive and detailed investigation of the matters in question.

In his conclusions, the Inspector has determined that:

• Mr Jim Stanley is and was at all material times the beneficial owner of Mir Oil Development Ltd;
• the Bula shares, both formerly and currently held by Chamonix Nominees Ltd. in trust for Mir Oil, are and were at all material times beneficially owned by Mr Jim Stanley;
• as regards the Bula shares held by Pictet International Management Ltd., there was no malign influence involved in its ownership or disposal of Bula shares;
• he has no reason to believe that there was any connection between Pictet International and the Mir Oil/Chamonix companies.

The Tánaiste has decided to refer Mr MacCann's Report immediately for attention and any necessary action to the Director of Public Prosecutions and the Irish Stock Exchange.

The Tánaiste is also sending copies of the report to Bula Resources (Holdings) plc, Ovoca Resources plc, the UK's Department of Trade and Industry, the Jersey Financial Services Commission, the Central Bank, the Department of Finance and the sponsoring brokers.

In commenting on the Inspector's Report, the Tánaiste states: "I expect the highest corporate standards to be maintained by all listed public companies. Mr MacCann's Report reveals that this was not the case in Bula Resources (Holdings) plc. Clearly there are questions to be answered in relation to the stewardship of Bula during the period that Mr Stanley was both Chairman and Managing Director. Satisfactory oversight of Mr Stanley's activities was clearly absent.

I am also concerned to learn from Mr MacCann's Report that neither the register of directors' interests and shares nor the register of significant shareholdings was kept by the company as required by statute, until Mr MacCann sought to see the registers as part of his investigation. I would have expected that every company listed on the Irish Stock Exchange would have been scrupulous in complying with all of its statutory obligations.

While the bulk of Bula shareholders have clearly been innocent victims of the events disclosed in the Inspector's Report, the Bula Report should serve as a warning to all shareholders that they should use every opportunity to seek information and demand explanations of their boards of directors. Such opportunities should in particular be exploited at every general meeting. In the light of Mr MacCann's Report, my Department is asking Bula to indicate what action will be taken by the company and/or its directors to re-establish investor confidence.

I believe that the Stock Exchange itself has significant issues to ponder in the light of Mr MacCann's Report, and my Department is asking it to indicate what lessons can be drawn from his findings."

Under section 59 of the Companies Act, 1990, a register of directors' interests and shares is generally required to be maintained by every company. Under section 80 of the 1990 Act, every public limited company is required to keep a register of significant shareholdings.

In the 1997 Annual Report of Bula, the Chairman's Statement indicates that about 74 million ordinary shares owned by Mir Oil remain frozen by the High Court. The Directors' Report also makes reference to issues of corporate governance arising out of the Mir Oil controversy.