Labour leader Eamon Gilmore has claimed that the €40 million bonuses to AIB executives may have to be paid.
Mr Gilmore asked in the Dáil “are we in a position where the Minister has shut the door after the bonuses have bolted?”
Taoiseach Brian Cowen, during Leaders’ Questions, confirmed that 91 AIB employees had begun legal proceedings in the Circuit or High Court in October and the first case was scheduled for November.
Mr Lenihan had said “the bank cannot stop the payment of a bonus to trader John Foy, who took the legal challenge”.
The Labour leader said in the House that according to a 1950 court case “the Executive cannot intervene or supervene, the word’s that now being used by the Minister, in a case which has already commenced”.
He said: “If that’s the case then we’re in territory where the Minister has sent his letter but bonuses may end up having to be paid.”
Minister for Finance Brian Lenihan sent a letter to the bank warning that the provision of further State funding was conditional on the non-payment of any bonuses, no matter when earned.
Mr Gilmore said: “The Government was shamed into sending that letter, having told us originally that there was nothing that could be done for legal reasons”. But he said: “The issue that arises is – is it too late?”
The Taoiseach told him that the “supervening” event was that unless the bank was “not to go ahead” they would be putting at risk the State money in the recapitalisation of the bank.
Mr Cowen said the Minister indicated that “this is difficult territory in legal terms but we believed that this is the means by which we can ensure that bonus payments aren’t paid and do so in a way that withstands legal scrutiny”.