Taoiseach says he is appalled by AIB revelations

The Taoiseach, Mr Ahern said today he was appalled at the revelations of completely unacceptable practices at Allied Irish Banks…

The Taoiseach, Mr Ahern said today he was appalled at the revelations of completely unacceptable practices at Allied Irish Banks.

Speaking on RTE Radio, Mr Ahern said there was no room for complacency in dealing with these issues because the credibility of the State's banking services is at stake. "These issues are breaking our tax laws and they are not doing any good to our image. We've a good financial service image in Ireland. We have to keep that, we have to uphold that."

He said investigating the scandal was the responsibility of the Irish Financial Services Regulator Authority (IFSRA). "IFSRA have to go in and they have effectively investigate and examine and root out these things."

He said the country could not tolerate the few people, who, "to be blunt about it . . . want to put jam and cream on their own cake."

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The names of AIB executives who were the beneficiaries of an offshore investment scheme which involved a breach of tax law were revealed over the weekend. The Aer Lingus chairman, Mr Tom Mulcahy, resigned yesterday after being identified as one of the AIB executives found to have had "tax issues".

AIB is also being investigated for overcharging certain foreign exchange customers and for assigning payment protection policies to some mortgage holders without their knowledge.

And the bank faces another inquiry concerning overcharging for the management of some trusts. "completely unacceptable" practices.

Mr Ahern said nothing could be swept under the carpet. The final result of a "terrible few weeks must be a banking system that was "absolutely perfect, it must be pristine and clean and clear. There are problems there and we have to rectify them."