NIB report employees to learn if they face proceedings

The 19 individuals named in the High Court inspectors' report following an investigation of National Irish Bank's affairs will shortly learn whether they will face disqualification proceedings.

The Director of Corporate Enforcement, Paul Appleby, who has sought additional information on these former employees from the bank in recent months, will make a final decision on this matter in the coming weeks, he said yesterday.

Mr Appleby has the power to bring proceedings against these individuals that would prevent them from acting as directors, promoters or managers of a company in the future, if he is successful. The individuals named in the report include, former chief executive Jim Lacey, former financial services manager Beverly Flynn TD, and former head of financial advice service Nigel D'Arcy.

Mr Appleby's comments follow the appearance of NIB's chief executive, Don Price, at the Dáil Joint Committee on Finance and the Public Service yesterday to discuss the High Court inspectors' report that examined overcharging at the bank over a 17-year period and the role of some of its staff in facilitating tax evasion for customers.

The High Court inspectors' report is also separately being examined by the Director of Public Prosecutions who may also bring proceedings against them. Meanwhile the High Court is expected to rule shortly on whether the names of the members of NIB's board audit committee, at relevant times, should be disclosed to him by the inspectors.

Mr Price, who was not at NIB during the period under investigation, told committee members that all of the individuals involved had left the bank. In response to questions from Labour Party spokeswoman, Joan Burton TD, Mr Price stated that all of these individuals would have been entitled to depart from the organisation with whatever entitlements they were due, including pensions and bonus payments.

Mr Price told the committee the bank has paid a very heavy price for its misdemeanours. The cost of the investigation together with the refunding of monies, plus interest to customers affected, will cost the bank €75 million, he said.

Apart from the financial cost to NIB, Mr Price said the damage to its reputation following the overcharging revelations and the disclosure of the unauthorised sale of offshore investments had depressed its growth prospects here at that time.

"We are sorry for what happened and have learned lessons. NIB continues to make amends," Mr Price said, stressing that the bank, which is now owned by the Danish Danske Bank, operates on a compliant and trustworthy basis.

Mr Price said the bank has been transformed and bears no resemblance to the organisation investigated by the inspectors. Its new owner has announced plans to invest in its information technology systems and to expand its branch network and bring new products to the market, he said.