A senior Treasury official has told a Tynwald Select Committee about a war on three fronts as she tried to force the Manx Electricity Authority to obey financial regulations.

Former Chief Financial Officer Mary Williams explained she first tried to force the MEA into compliance, and then reopened talks.

Mrs Williams said an attempt to serve a Treasury direction in 2002 ended in failure when the Attorney General’s office changed its mind about whether such a move was legal.

She said the Department of Trade and Industry sided with the authority throughout the difficulties.

Mrs Williams said she wrote to the MEA under the 1985 Treasury Act ordering it to comply, but two days later, after the Attorney General met with the MEA’s Chief Executive Mike Proffitt, she had to withdraw the direction.

The hearing heard Mr Proffitt demanded she also destroy all correspondence dealing with the direction and the then Trade and Industry Minister Alex Downie described the MEA board as the 'A-Team' and accused the Treasury of bogging the authority down with needless bureaucracy.

Mrs Williams said she felt ignored by the Attorney General’s office, under pressure from the DTI and sidelined by the MEA.

The select committee will next hear evidence on July 1.

(Picture: The headquarters of the Manx Electricity Authority, at the Ballacottier business park).