Interim report on National Irish Bank investigation presented to High Court

A further interim report of the two inspectors investigating the affairs of National Irish Bank (NIB) was presented to the High Court yesterday.

The content of the report was not disclosed but Mr Justice Kelly noted it was anticipated the inspectors' final report would be produced in the first half of 2003.

Mr Justice Kelly read the report, which was presented to him by Mr Donal O'Donnell SC, for the inspectors, and directed that copies be sent to the Director of Corporate Enforcement and to NIB.

Counsel said there were some "logistical difficulties" being experienced in relation to persons who had said they had not got access to documents.

He added that the bank was also to be given time to make submissions.

The judge said there were references in the report to unwillingness on the part of individuals to make submissions and asked whether the inspectors were "running into difficulties".

Mr O'Donnell said the situation was not insurmountable and the inspectors anticipated that this phase would be concluded.

If the inspectors had to apply to the court, that would be done but the situation would be clearer in September or October.

The two inspectors - former Supreme Court judge Mr John Blayney and accountant Mr Tom Grace - were appointed by the High Court on the application of the then Tánaiste and Minister for Enterprise and Development, Ms Harney, in March 1998.

Under the order, the inspectors are to report and investigate on the affairs of NIB from 1988 relating to improper charging of interest and fees to the accounts of customers; improper removal of funds from accounts; and all steps taken by NIB, its directors and officers, in relation to the charging of such fees and interest or the removal of any funds.

The inspectors are also investigating the books and records of NIB and whether other unlawful or improper practices existed from 1988 or might still exist "which serve to encourage the evasion of any Revenue or other obligations on the part of the bank or third parties".

Matters relating to National Irish Bank Financial Services Ltd, including the effecting of policies of life assurance on behalf of its customers with Clerical Medical International Insurance Ltd, are also being investigated.