Department investigates BoI bonuses

The Department of Finance is conducting an investigation into bonus payments made to Bank of Ireland staff in the wake of the bank guarantee, it emerged today.

The information was revealed in Minister for Finance Brian Lenihan’s response to a parliamentary question tabled by Labour Party finance spokeswoman Joan Burton.

In a written reply, Mr Lenihan said previous information given to his department by Bank of Ireland “to the effect that no performance related bonuses were paid to staff was incorrect, as it did not take into account 'contractual bonuses' which were performance related”.

“This failure by the bank led to erroneous information being placed on the Dáil record on December 1st,” his reply said.

Mr Lenihan said the bank had written to his Department acknowledging the “difficulties caused as a result of this misinformation” and had apologised for them.

He said an “intensive investigation” of the additional payments made by Bank of Ireland has been undertaken by his department, the results of which would be made available to the Dáil upon completion.

But Ms Burton said she was “deeply disturbed” at the implications of the information revealed in Mr Lenihan’s reply. She claimed Bank of Ireland had been “economical with the truth" about bonus payments paid to staff.

“In no way is an apology from the bank for giving misleading information an adequate response to this situation,” she said.

“It beggars belief that the bank would not have data on bonuses or other discretionary payments at their fingertips in this day and age,” she added.

Prior to Christmas, Mr Lenihan revealed bonuses worth €44.7 million had been paid to staff at the six financial institutions covered by the guarantee in the years 2008-2010.

Some €20 million was received by Anglo employees in the last few months of 2008. At the time, Mr Lenihan said he was still waiting for a reply from the Bank of Ireland regarding bonuses.