FORMER Dublin Bus chairman, Mr Bob Montgomery, has settled his actions against the company and is currently doing some consultancy work for CIE. He had been taking legal action following his departure from Dublin Bus in October 1994.

The size of the settlement has not been disclosed, but some estimates have put the figure at more thank £100,000.

In a joint statement issued last night, CIE and Mr Montgomery said the legal actions which Mr Montgomery had taken had now been "satisfactorily resolved" through a confidential settlement. Mr Montgomery had been taking a High Court action for wrongful dismissal and an Employment Appeals Tribunal ease for unfair dismissal

The statement says that CIE and Mr Montgomery both regret that following the retirement of the executive chairman Mr Paul Conlon in July 1994 and his replacement by a non executive chairman and an acting group chief executive, circumstances developed which led to "a mutual loss of trust, confidence and respect" between Mr Montgomery and the then CIE board.

The statement adds that this culminated in his decision to resign on October 17th, 1994. At the time he left Dublin Bus, CIE said that Mr Montgomery resigned. Mr Montgomery said he had "ceased to be employed by Dublin Bus".

It was also said at the time that the board had issued an ultimatum to Mr Montgomery that he should sell his interest in the Greater Manchester Bus Company - where he had been appointed a non executive director in 1994. Under CIE board rules, directors and employees are not permitted to work for, hold shares in, or hold directorships of other transport companies because of potential conflicts of interest.

However, it is understood that, although his interest in the Manchester bus company was a contributory factor to his departure, it was not the main factor.

Mr Montgomery's tenure in CIE coincided with the appointment of the chairman, Mr Dermot O'Leary, and the acting chief executive, Mr Noel Kennedy. Last year the Minister for Transport, Energy and Communications Mr Lowry asked Mr O'Leary to resign - less than one year after he had been appointed by the Fianna Fail led administration.

A new executive chairman, Mr Eamonn Walsh, and a group chief executive, Mr Michael McDonnell were then appointed. Some board members complained that proper procedures had not been followed regarding the appointments.

As the controversy grew, Mr Walsh was said to have become increasingly unhappy in his post. He, resigned in November 1995.

A series of bitter board meetings followed in which the Government asked the board to resign. Two directors refused and were dismissed.

Yesterday's statement said: "CIE acknowledges the considerable positive progress made by Dublin Bus while Mr Montgomery was managing director between February 1991 and October 1994, and he greatly enhanced the public image of the company through his policy of product innovation, financed by cost reductions."

Mr Montgomery joined Dublin Bus in 1991, having previously been engaged in restructuring bus companies in Britain. Some sections of Dublin Bus unions were concerned, that he was preparing the company for privatisation.

During his tenure he oversaw a reduction in the company's deficit from £10.2 million to £3.2 million.

Neither party would elaborate on yesterday's statement.