NIB must show documents to ex-executives

The High Court has ordered National Irish Bank to make certain documents available to former executives facing disqualification on foot of an investigation into tax evasion at the bank in the 1990s.

The Director of Corporate Enforcement is seeking orders disqualifying eight former senior NIB executives from involvement in the management of any company. The proceedings arise following publication in July last year of the report of the inspectors who investigated tax evasion in NIB in the 1990s.

Mr Justice Peter Kelly made directions yesterday in relation to the director's applications against two of the eight - Kevin Curran, Avondale Court, Blackrock, Co Dublin, and Tom McMenamin, College Grove, Castleknock, Co Dublin.

Brian O'Moore SC, for Mr Curran, and Michael Cush SC, for Mr McMenamin, indicated both of the former executives disputed the findings of the inspectors in relation to them. While both counsels made applications for access to certain documents in the possession of NIB, they also indicated it might not be necessary to pursue discovery issues.

Mr O'Moore said Mr Curran was "an old-style bank manager" who was very anxious to have the cloud hanging over him dissipated as soon as possible.

Mr Justice Kelly said he would direct the documents be made available to both executives and counsel could avail of that access if they so wished. He also made directions for the exchange of affidavits between the sides and returned the proceedings regarding Mr Curran and Mr McMenamin to February 7th next.

Earlier, Mr Cush said he believed the issues in the case could be narrowed if the director would identify what was in dispute with his client and if admissible evidence was identified. There were arguments about the admissibility of some of the findings of the inspectors.

For example, he said, the inspectors had incorrectly said Mr McMenamin was appointed to a certain position on a certain date and that might have implications for his level of responsibility for a certain activity.

The judge said he understood what counsel was saying but it seemed a little inconsistent with what Mr McMenamin had said in documents. Alone of all the respondents, Mr McMenamin was seeking a full oral hearing and there was also an indication of a possible challenge to the constitutionality of provisions of the Companies Act 1990.

Mr Cush said he, as counsel for Mr McMenamin, was outlining a possible means of narrowing the issues and was not seeking a ruling at this point.

Brian Murray SC, for the director, said the matters regarding Mr McMenamin were set out in detail in the director's application and the director was relying on all of those. The director was opposed to the approach suggested by Mr Cush.

Directions regarding the cases of the six other respondent executives were made earlier this week. The six are - Jim Lacey, Pine Haven, Grove House Gardens, Blackrock, Co Dublin; Barry Seymour, Beaumond, Amersham, Bucks, England; Michael Keane, Corr Castle, Howth, Co Dublin; Frank Brennan, Ardglass, Dundrum, Dublin; Patrick Byrne, St Helen's Road, Booterstown, Co Dublin and Dermott Boner, Chesterfield Avenue, Castleknock, Co Dublin.

A similar application has been brought against another former NIB executive, Nigel D'Arcy of Castledillon, Straffan, Co Kildare. Counsel for Mr D'Arcy told the judge last week Mr D'Arcy was consenting to the disqualification order and there was "no denial of wrongdoing". Mr Justice Kelly has reserved judgment in Mr D'Arcy's case.