Christine Smith QC, counsel for the Historical Institutional Abuse (HIA) inquiry, told a public hearing that the alleged abuser was interviewed by police, but no prosecution was directed despite the fact that he “admitted abusing MH41 at his own home”.

The soldier allegedly “admitted having feelings for MH41”. The alleged victim said the abuse included the soldier’s wife having sex with him.

The decision not to prosecute the accused was taken in 2004.

The judge-led inquiry yesterday began probing abuse allegations at Manor House, a Lisburn children’s home run by the Society for the Irish Church Missions (ICM) until its closure in 1984.

The first public hearing took place in Banbridge Court House yesterday morning and evidence will continue to be heard over the course of the week.

Sir Anthony Hart, a retired judge of the High Court, is due to submit a report to the Northern Ireland Executive by 17 January 2017 on abuse allegations at 22 institutions across Northern Ireland.

All of the hearings and investigative work must be completed by Summer 2016 under its revised terms of reference.