Spollen likely to be recalled to DIRT inquiry

AIB's former head of internal audit, Mr Tony Spollen, is likely to be recalled before the DIRT inquiry at the Oireachtas Public Accounts Committee this week.

He is to face questions about his allegation that the bank's former chief executive, Mr Gerry Scanlan, had instructed him to change an audit report, which he refused to do. AIB has denied the allegation.

"There is a likelihood that he [Mr Spollen] will be called back," said a senior source close to the committee yesterday.

However, it is understood that the committee's members will have to satisfy themselves first that any additional information which Mr Spollen may disclose would be material to the terms of the inquiry.

It is understood the committee was concerned when Mr Spollen first made the allegation last Tuesday that his privilege would lapse if the information was not relevant to the inquiry.

The committee's chairman, Mr Jim Mitchell, Fine Gael TD for Dublin Central, ruled that Mr Spollen could not continue his allegation as it might be straying outside the scope of the investigation. Mr Mitchell offered Mr Spollen the chance to consult privately with his legal advisers about this and he is expected to respond early this week. Mr Spollen could not be contacted last night.

If recalled, Mr Spollen is likely to be questioned when the committee sits again on Thursday.

Although AIB officials are still under sub-poena, it is understood the committee would cross-examine Mr Spollen again before finishing its dealings with the bank.

The committee is to meet before Thursday to consider recalling Mr Spollen once Mr Mitchell is discharged from hospital. He is receiving treatment for a back complaint. Mr Spollen's claims last week were not contained in his original statement to the inquiry.

AIB denied it had asked Mr Spollen to change an audit report. The bank said its legal adviser had asked him to remove a comment which was "hearsay and possibly defamatory".

It added that Mr Spollen was also asked to include facts in the report, which, if omitted, would render it incomplete. Mr Spollen refused. He has blamed his fraught relationship with Mr Scanlan on this incident. However, he said "the issue which drew the line" between both executives was a share price support operation AIB carried out for an oil exploration firm, Dana Petroleum, in 1988.

AIB subsequently admitted £250,000 worth of Dana shares bought by one its subsidiaries as part of an alleged scheme to support their price were sold on to two of the bank's staff pension funds.

The bank insisted, however, the transaction did not involve a "notifiable offence".

The share issue, which was not successful, was handled by Allied Irish Securities, the then recently formed stockbroking arm of the bank..