Investigator thought bank manager should be dismissed over $60m loan letter

A senior counsel appointed as an independent investigator concluded that a bank manager warranted dismissal as a result of writing a letter sanctioning a $60 million (€45 million) loan in principle to a company of which he was joint owner.

Senan Allen SC was an agreed investigator between AIB and bank manager Declan Maher from Clifden, Co Galway. Mr Maher is claiming unfair dismissal and seeking compensation from AIB after his position at AIB Clifden was terminated in 2011. It followed an internal investigation into the letter he wrote on AIB headed notepaper, committing the funds to BMB Partnership in 2005. BMB Partnership was a joint venture between Mr Maher and his accountant Kevin Barry.

Appeals tribunal

An initial

Employment Appeals Tribunal

hearing earlier this year was told that, in the letter, dated April 21st, 2005, Mr Maher claimed AIB was “agreeable in principle” to advance $60 million to BMB Partnership to complete the purchase of 100 villas in Florida. The tribunal heard no official application was ever made and no loan ever issued. The letter sent by Mr Maher to Mr Barry on April 21st, which was read to the tribunal, said: “I refer to your recent application on behalf of BMB Partnership to borrow $60 million to complete the purchase of 100 villas (known as Gables on the Green) in Orlando, Florida.

The villas

“I understand that these monies will not be required until the villas are fully completed, which date is estimated to be in approximately 12 months.

“Based on the data submitted, I can confirm we are agreeable in principle to advance these funds to your group, subject to the following . . .”

The letter went on to include five conditions. But an internal investigation could find no paper trail for any loan application by BMB Partnership.

Mr Maher denied the letter amounted to a loan sanction in principle, insisting it was a marketing letter to attract new business to the bank.

At the resumed hearing in Galway yesterday Mr Allen said he had held a completely new hearing over two days into the circumstances surrounding Mr Maher’s dismissal. He was satisfied “beyond a shadow of a doubt” that the letter written by Mr Maher was a letter of sanction in principle and was not “a nothing letter”.

The hearing continues.