A LEGAL challenge by Iarnród Éireann human resources director John Keenan over his alleged wrongful suspension last December has been settled at the High Court.
Mr Keenan said later he had no comment to make as the settlement was confidential but he pointed out he remained an employee of CIÉ. Mr Keenan is also to be paid his legal costs.
Last January, Mr Keenan failed to obtain an injunction preventing his suspension pending his full court action against the company.
That action was due to open yesterday before Ms Justice Mary Laffoy but, following discussions, Oisín Quinn SC, for Mr Keenan, said the case had been settled on written terms to be lodged with the court.
Ms Justice Laffoy said she was glad the matter had been resolved.
During the injunction hearing, it was claimed Mr Keenan was suspended for an alleged delay in telling his chief executive officer Richard Fearn about a substantial award against the company to an employee who alleged gender discrimination.
The court also heard Mr Keenan had accused Mr Fearn and CIÉ chairman John Lynch of a cover-up in relation to the extent of fraud in Iarnród Éireann.
Iarnród Éireann counter-claimed that Mr Keenan was involved in unauthorised accessing of employee e-mails, medical records and in having a tracking device placed on an employee’s car.
Mr Keenan denied those claims and said they could be explained as part of his role in tackling alleged fraud in the company.
The court heard the initial reason for his suspension was his alleged delay in notifying Mr Fearn of the result of an Equality Tribunal award of €189,000 to a woman who alleged gender discrimination over promotion within the company.
Iarnród Éireann claimed the delay in informing Mr Fearn of the award had led to Mr Fearn losing confidence in Mr Keenan.
Mr Keenan claimed the difficulties between him and Mr Fearn were really over his reporting of the level of fraudulent practices in the company.
He claimed this had triggered an adverse reaction from his superiors. He got calls from Mr Lynch, berating him and telling him to “button” his lip, after an article about the fraud appeared in a newspaper.
He claimed Mr Lynch and Paul Kiely, chairman of Iarnród Éireann’s audit committee, had told him he was stupid to suggest such high losses and that their positions were jeopardised by this aspect of the report.
He also claimed a forensic accountant’s draft report, which estimated losses from fraud at some €8.7 million, had been altered to a figure of €2.5 million after Mr Fearn argued the estimate was outside the terms of reference of the report.
Mr Keenan claimed Mr Fearn wanted the €8.7 million figure removed, but Mr Keenan advised against this.