Hospital consultants have called on the Financial Regulator to investigate the Medical Defence Union (MDU), the international indemnity organisation which provides cover for hundreds of Irish doctors.
The Irish Times revealed yesterday that three non-executive directors of the Medical Defence Union resigned last week in a boardroom row over corporate governance issues, especially over the disclosure of remuneration to executives.
Another director stepped down for similar reasons several months ago.
The four directors submitted a report on the circumstances surrounding their resignation to the financial regulator in Britain, where the union is based.
However, the Irish Hospital Consultants Association said yesterday that MDU Services Ltd, an affiliated company, was registered with the Financial Regulator.
The secretary general of the the hospital consultants association, Finbarr Fitzpatrick, said it had written to the Financial Regulator yesterday asking it to consider an inquiry.
The MDU meanwhile, has declined to provide the Department of Health in Dublin with details on the background to the resignations. The department had written to the MDU on Tuesday expressing concern about regarding the controversy.
Informed sources said the MDU told the department that it would make arrangements to replace the directors who resigned but that it would be providing no further details.
The financial regulator in Britain said it could not comment on whether it would be taking any action.
The hospital consultants association said it was shocked at the sudden resignations from the Medical Defence Union.
"The MDU has advised and lectured the medical profession in Ireland on governance and ethical standards.
"One would expect such an organisation to conduct its activities in a manner which would not leave a scintilla of suspicion regarding corporate governance," the association said.
The Irish Medical Organisation said it was very concerned at the revelations which, it believed, would undermine confidence in the MDU among Irish doctors.
In a statement on Tuesday, the MDU stated: "In respect of disclosure of executive remuneration, the annual report and accounts, which members are now receiving in advance of our agm in September, contain financial statements which have been prepared in accordance with the Companies Act 1985 and applicable accounting standards and independently audited.
"These contain information about the company, its staff and directors, including executive remuneration."
Relations between the medical organisations here and the MDU have been strained for some time.
The MDU has exercised its discretion and has declined to provide assistance or indemnity to 81 Irish consultants.
In most cases the union believes that such cases should be dealt with by the State which introduced an indemnity scheme for hospital consultants in 2004.
