Current and former executives of National Irish Bank (NIB) who face criticism in the report of the High Court inspectors investigating the bank are to be informed of the findings over the coming weeks, writes Colm Keena
The inspectors, accountant Mr Tom Grace and Mr Justice John Blayney, may present their report to the High Court during the coming law term - provided no legal action is taken by any of the parties due to be criticised in the report.
It is understood the inspectors have completed a draft of their report in relation to facts and are moving into the second stage of their work, where the bank and some of its executives will be given an opportunity to respond to proposed adverse findings.
The Fianna Fáil TD Ms Beverly Cooper-Flynn, who worked for NIB Financial Services Ltd, an NIB subsidiary that marketed unauthorised offshore bonds, said earlier this week she had not received any notice from the inspectors in relation to any proposed adverse finding.
"I have nothing else I want to say on the matter," she added.
Publication of the report could come before the general election, which is expected in May. People being informed of the report's likely findings are being given a set period in which to respond but delays could occur if a court action is taken.
In June 1998, Ms Cooper-Flynn issued a statement saying: "I wish categorically to state that at no time in my seven years working with NIB, between 1989 and 1997, did I ever encourage anyone to invest in a financial product as a means of evading his or her obligations to pay tax."
The inspectors are investigating alleged improper charging of fees and interest by the bank during the period 1988 to March 1998, as well as the marketing of offshore bonds by NIB Financial Services and whether the bank encouraged tax evasion. During much of the period the bank chief executive was Mr Jim Lacey.
Asked if he had been given notice of what would be said about him in the report, Mr Lacey said: "I wouldn't have anything to say about that." Mr Lacey resigned from the bank in April 1994.
The inspectors were appointed in 1998 and their inquiry has to date cost approximately €4.5 million (£3.5 million), exclusive of legal costs. When the report is concluded, the costs may be sought from the bank. During the investigation, court action was taken by serving and former bank executives who feared that testimony they were being asked to give might be used against them in subsequent criminal prosecutions. The Supreme Court ruled that the executives had to answer questions put to them but that involuntary answers would not, in general, be admissible in subsequent criminal proceedings.
In the wake of the ruling, a statement issued on behalf of some bank managers said they had at all times "acted in accordance with the directions of their employers".
It is understood NIB managers told the inspectors they learned of the practice of overcharging customers while rising through the ranks in the bank. The practice may largely have ended in 1990 when an instruction was issued from head office following an internal audit.
