The two inspectors investigating allegations against National Irish Bank (NIB) can now begin the process of interviewing former and serving members of the bank's staff.
The two inspectors, the former Supreme Court judge, Mr John Blayney and Mr Tom Grace, had planned to begin the interviews in May but were prevented when the employees raised legal objections.
Yesterday's judgment does not give the inspectors any new powers, but it provides the backing of the High Court for their view as to the strength of the powers given to them by the Companies Act 1990.
From the point of view of the bank staff, yesterday's decision could hardly have been worse. The ruling will apply to the inspectors' investigations of both the interest and fee-loading issues, and the sale of offshore insurance bonds. The staff, former and serving, will now be forced to co-operate with the inspectors without knowing whether their evidence can be used against them in future criminal proceedings which might arise.
The admissibility of such evidence is an issue which can be raised by a staff member during any criminal case which may arise, the court ruled. A formula for creating greater anxiety among the staff could hardly be imagined, especially as they know that the Tanaiste, Ms Harney, has already referred an interim report on the sale of offshore bonds by the bank to the Director of Public Prosecutions.
Today, solicitors acting for the staff, who were parties to the case, will begin to study the 33-page judgment with a view to advising their clients as to whether there are grounds for an appeal. Some legal sources have indicated the staff may take the case all the way to the European Court of Human Rights in Strasbourg, a process which would hold up the inspectors' investigation for a considerable length of time. Such a move would prove very costly if unsuccessful.
The case taken by the NIB staff, if it had gone their way, had the potential to considerably weaken the powers contained in the Companies Act 1990. Instead, and barring a successful appeal, the powers of inspectors have been considerably re-enforced for this and all future investigations.
