An Garda Síochána facing legal action over Denis Donaldson investigation
The Real IRA admitted to shooting the high-ranking Sinn Fein official three years later.
The Irish police ombudsman, Fiosrú, said in a letter to the Donaldson family that it believed gardai had failed to fulfil a request for information necessary for its investigation.
Fiosrú told the family it would begin legal proceedings in Dublin Circuit Civil Court seeking an order for disclosure, RTE also reported.
An Garda Síochána declined for comment adding it did not remark on Fiosrú matters.
Enda McGarrity, the Donaldson family's lawyer, said the watchdog's investigation had taken place over the course of three years.
'We now understand that Fiosrú are commencing legal proceedings against An Garda Síochána arising out of a failure to comply with aspects of the investigation,' she said.
'That's a matter of significant concern to the family because the body which is charged with investigating the murder of Denis Donaldson are now not only being investigated, but failing to comply with investigation and that gives rise to family's wider concern that the State are currently not delivering an effective investigation.'
It comes after Gerry Adams won a defamation case against the BBC in May following a story in 2016 in which it was claimed he was linked to the murder of Mr Donaldson.
In Profile: Former Sinn Féin president Gerry Adams
The five-week trial centred on an anonymous source in a BBC NI Spotlight programme claiming Mr Adams had sanctioned the shooting by giving 'the final say'.
The 76-year-old, who had always denied the allegation, described it as a 'grievous smear' and accused the BBC of upholding 'the ethos of the British state in Ireland'.
Mr Adams was awarded £84,000 in damages by the High Court jury in Dublin.
The BBC reported the legal bill could cost up to £4.2m and is understood to be one of the most expensive cases they have ever fought.
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