IARNRÓD ÉIREANN’S human resources director John Keenan has claimed before the High Court that differences over the level of fraud in the company, allegedly costing up to €8.7 million, formed the background to his suspension last month.
The company has argued that Mr Keenan’s suspension should continue as a holding position pending investigations into his alleged 10-day delay in informing chief executive Richard Fearn of an €189,000 Equality Tribunal award to a female employee who alleged gender discrimination relating to promotion.
Mr Fearn had lost confidence in Mr Keenan as a result, Roddy Horan SC, for the company, said.
The company also said the suspension should continue arising from new allegations that Mr Keenan was involved in incorrect surveillance of employees.
It is alleged Mr Keenan was involved in 32 instances of surveillance of employee computer records, incorrect accessing of sensitive medical records and the placing of tracking devices on employees’ cars.
Mr Horan said the company believed Mr Keenan was using his office as a “personal fiefdom”.
Mr Keenan, who has been human resources boss at the rail company for 15 years, yesterday sought an injunction lifting the suspension imposed on him on December 3rd last by Mr Fearn.
The hearing of the injunction application concluded yesterday before Mr Justice John MacMenamin, who reserved judgment until next week. The order is sought pending a full hearing.
Mr Keenan has denied claims against him and said the latest allegations could be explained in terms of his role in an internal cost audit unit in Iarnród Éireann. There is nothing to stop the company conducting its investigation without suspending, he says.
Oisín Quinn SC, for Mr Keenan, argued that the suspension was not on any rational or reasonable basis. He said his client had not delayed in informing the chief executive of the Equality Tribunal decision and there was no basis for claims he ran a personal fiefdom.
In affidavits, Mr Keenan outlined a series of events within Iarnród Éireann over alleged fraud involving collusion between certain company personnel and third-party contractors.
Mr Keenan said he was responsible for the cost audit committee within the company and had recommended engaging forensic accountants to look into the matter.
In the accountants’ 2007 report, it was found the company made estimated losses over a three-year period of about €8.7 million from fraud.