Bank confirms inquiry into internal finances

The Garda Fraud Squad was reported yesterday to be inquiring into an allegation of financial fraud in a branch of the Ulster …

The Garda Fraud Squad was reported yesterday to be inquiring into an allegation of financial fraud in a branch of the Ulster Bank in Waterford. The investigation is understood to concern suspected irregularities which arose in the course of a routine internal audit several weeks ago at the bank's branch on The Quay in Waterford city. It is not believed to have involved the accounts or money of any private customers of the bank.

The investigation was revealed last night in an RTE news report from Waterford which suggested that the sum involved in the alleged fraud amounted to six figures but was less than £300,000.

An Ulster Bank investigation team was sent into the branch after apparent discrepancies were noticed during a routine audit. A comprehensive internal investigation was undertaken and a staff member at the branch was suspended on full pay, the report said.

A bank spokesman confirmed last night that an internal investigation had been carried out and said the matter involved the bank's own finances, rather than customers' money. The discrepancies that had come to light did not involve any parties outside the bank.

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However, gardai had been notified in accordance with procedure.

The Fraud Squad has since interviewed a member of the staff as part of an ongoing investigation, according to reports. The staff member was not named, for legal reasons. The case is believed to bear no relation to the matters currently under investigation in regard to NIB.

A previous bank fraud inquiry in the south-east region involved the Bank of Ireland branch in Bagenalstown last year. A bank official was dismissed and the High Court heard allegations that "teeming and lading" of customers' accounts had taken place over a three-year period.

The total figure involved was said to be up to £1 million, and it is understood that all holders of disputed accounts received settlements from the Bank of Ireland.