NIB seeking copy of interim report

National Irish Bank is to apply to the High Court for a copy of the interim report of the inspectors inquiring into its sale of offshore bonds.

Yesterday at a vacation sitting of the court, the President, Mr Justice Frederick Morris, was told that a copy of the report has been given to the High Court registrar's office.

He was also told that a copy of the report would be given to the Tanaiste, Ms Harney, as was required under the Companies Act 1990. The report was to be delivered yesterday afternoon. Ms Harney is currently on holiday but a spokesman said she would be studying the report when she returns at the end of next week.

Mr Justice Morris granted liberty to NIB to apply to the court for a copy of the report. The application is to be heard in two weeks. No other application was made during the brief hearing and no order was made by the court on foot of the report.

The inspectors, Mr John Blayney SC and Mr Tom Grace, are inquiring into the sale of some £48 million worth of offshore bonds by National Irish Bank Financial Services Ltd (NIBFSL), since 1990. It has been alleged that the bonds may have been used by persons wishing to avoid tax. NIBFSL is a subsidiary of NIB.

An interim report produced by an earlier inquiry into the sale of the bonds, by authorised officer Mr Martin Cosgrove, was referred by Ms Harney to the Revenue Commissioners and the Director of Public Prosecutions.

However, Mr Cosgrove was appointed by and reported to the Tanaiste. The inspectors were appointed by the High Court on the application of the Tanaiste and report to the court, which may then make such orders as it sees fit.

The inspectors were appointed to NIBFSL on June 15th last. Ms Harney initiated the approach to the courts after receiving Mr Cosgrove's report.

Mr Blayney and Mr Grace were earlier appointed by the High Court to inquire into allegations of overcharging by National Irish Bank. An interim report on that matter was furnished to the court and to Ms Harney in June.

The bank was given a copy of Mr Cosgrove's interim report by the Tanaiste's office and an edited copy of the inspectors' interim report into the overcharging allegations, by the court.

The inspectors' inquiry is being hampered by an ongoing legal challenge by about 130 former and serving NIB managers and senior executives, concerning their right not to silence. The High Court ruled that they must answer the inspectors' questions and this decision is now being appealed to the Supreme Court.

Documentation from the Department of Enterprise, Trade and Employment seen by The Irish Times says that "pending the outcome of this legal action, the inspectors' work is being wound down". NIB is providing financial support to the staff in relation to the legal action, though chief executive Mr Graham Savage has said the bank finds itself caught between wishing to assist the inquiries and needing to be supportive of its staff.