Tribunal questions bank man about Burke's account

A former AIB bank manager has denied that his recollection was "unreliable" after he failed to tell the tribunal of accounts held in his branch by Mr Ray Burke and the builders Brennan and McGowan.

Mr Timothy McHale, former manager of AIB's Bruton Street branch in London, said he did not think he had dealt with these accounts, and therefore could not remember them.

Last June Mr McHale told the tribunal Mr Burke had no account at the branch. He said Brennan and McGowan did not have accounts there either. However, the bank later discovered that the former minister had an account for a six-day period in November-December 1983. Brennan and McGowan and some of their companies also held accounts in the branch, it was discovered.

The tribunal is investigating a lodgement of £35,000 in April 1984 to Mr Burke's Jersey account, which the former politician said came from Bruton Street. No evidence has been found to support this claim.

Yesterday, Mr McHale said he "didn't forget very much". But in a large, busy branch junior officials would deal with accounts and the manager would not know about everything. Mr Burke's account was a "six-day encounter" and he probably would not have known about it.

Ms Patricia Dillon SC, for the tribunal, asked why Mr McHale's previous, incorrect answers had been so unequivocal. She said his recollection was "unreliable".

In his earlier evidence, Mr McHale had claimed he first met Mr Burke at Cheltenham in 1982, but Mr Burke's lawyers yesterday produced newspaper cuttings to show he was in Dublin for the St Patrick's Day parade on the day in question.

A senior official of AIB in the UK told the tribunal of "problems" with customers' accounts at Bruton Street. Ms Tiana Peck, head of legal services, said one set of brothers (who were not named) had alleged that Mr McHale closed accounts in the Isle of Man without their permission after he had retired.

Ms Peck told Mr Aidan Walsh SC, for Mr Burke, the brothers did not issue proceedings but they did receive financial "benefit" from their complaint. Newspaper reports said the brothers received almost £500,000.

After the bank started an investigation, Ms Peck wrote to Mr McHale in December 1994: "The customers have informed us that you admitted removing all of those monies and closing the accounts without their knowledge or authority and that you have offered to repay the amounts."

In a second case, a couple claimed that Mr McHale had misappropriated money from their account. Ms Dillon said the allegation had been rejected by the English courts and denied by the bank.

Earlier, Mr Stephen Miley, of Miley and Miley solicitors, denied he acted for a number of offshore companies controlled by Brennan and McGowan. He agreed he provided conveyancing services for the Jersey companies but said this was done on behalf of the builders' solicitors in Jersey.