A secret memo has reportedly revealed a four-point plan devised by MI5 and the Force Research Unit (FRU) to reinstate double agent Freddie Scappaticci, codenamed Stakeknife, at the heart of IRA operations. Scappaticci had been on the run in the Irish Republic for two years by 1992, following the rescue of a police agent, Sandy Lynch, from a house in Lenadoon on January 7, 1990. During his time in hiding, Scappaticci reportedly received taxpayer-funded breaks in Britain, including visits to prostitutes.
Lynch had been held captive and subjected to psychological torture by the IRA. During a police raid on the house where Lynch was being held, Danny Morrison, along with four other IRA members and the homeowners, James and Veronica Martin, and their son Liam, were arrested. Morrison claimed he was present to assess Lynch's credibility for a press conference, not to sanction a death sentence. He was subsequently convicted of false imprisonment and sentenced to eight years, while others were arrested for conspiracy to murder.
While Morrison and others served time, Scappaticci remained in Clondalkin, near Dublin, reporting to his handlers along the border despite an existing arrest warrant for conspiracy to murder and false imprisonment. His intelligence focused on the IRA's GHQ operations in Dublin, particularly the quartermaster's department responsible for weapons, and information on IRA fugitives from Northern Ireland.
A Conspiracy to Pervert Justice
With apparent approval from Detective Chief Superintendent George Caskey, head of Belfast CID, senior FRU officers allegedly hatched a plot to return Scappaticci to operational status. This plan involved improperly interfering with the CID investigation into Scappaticci's role in Lynch's abduction and interrogation. The aim was to prevent Scappaticci from standing trial upon his return to Belfast, an action described as conspiring to pervert the course of justice. The plot also sought to alleviate suspicions from those who Scappaticci had helped imprison.
An opportunity arose in February 1992 at Sinn Féin's conference in Dublin, where Scappaticci encountered Veronica Ryan, who had been paroled. He apologized for the events, claiming he was not involved. Ryan, who would later become an accomplice, reportedly gave him the benefit of the doubt. This facilitated the FRU-Caskey plot, enabling Scappaticci to return to Belfast in October 1992 without facing charges.
The details of this alleged plot were outlined in a FRU document dated November 19, 1990, discovered in March 2004 by Detective Sergeant Andy Ansell of the Stevens 3 Inquiry. The document detailed a meeting between FRU operatives and Caskey. Commander Dave Cox, leading Stevens 3, informed Sir Alasdair Fraser that the FRU and Caskey had engaged in an "overt official operation to pervert the course of justice" to deceive the Director of Public Prosecutions' office and ensure no prosecution for the agent.
The plot involved providing Scappaticci with a false alibi for a thumbprint found on a bug detector battery. Caskey, who had a reputation as a diligent but sometimes pompous detective, was known for pursuing MI5's obstruction of an investigation into sexual abuse at the Kincora boys' home, where a housemaster was also an MI5 asset. Investigators noted the apparent contradiction in Caskey's actions, pursuing MI5 for obstruction in one case while allegedly colluding in a criminal conspiracy in another.
The Four-Point Plan
The FRU-Caskey plan to shield Scappaticci from prosecution consisted of four elements: keeping him out of Northern Ireland until legal proceedings against others concluded, managing his return and arrest, coaching him on a false alibi for the thumbprint, and ensuring Sandy Lynch did not testify against him. Veronica Ryan was approached by the daughter of IRA leader Con McHugh to provide an alibi for Scappaticci, claiming he was fixing electrical equipment at her home on a different day.
Following the conclusion of appeals in July 1992, Scappaticci returned to Belfast on October 6. Detective Chief Inspector Tim McGregor was informed by Caskey that Scappaticci was back and working on a construction site. McGregor, who had led the investigation against Morrison, was unaware Scappaticci was an agent or of the plot to protect him. Despite being directed to assemble an arrest package, McGregor's officers found Scappaticci prepared for a short detention, indicating he had prior knowledge of his impending arrest.
Scappaticci provided his fabricated alibi to McGregor, stating he had been fixing a TV remote for Veronica Ryan on a different occasion. Ryan corroborated this in a witness statement, leading the DPP to rule no prosecution. Scappaticci's handlers reportedly congratulated Caskey on their agent's "enhanced" status. However, the IRA leadership, suspicious of Scappaticci's involvement in the Sandy Lynch incident, indicated his time within the organization was over, prompting his quiet departure.