FORMER IRISH Nationwide chief executive Michael Fingleton has rejected any suggestion that he ran the organisation as a personal bank.
Giving evidence at the Employment Appeals Tribunal yesterday, Mr Fingleton said the suggestion was “a slander and absolutely untrue”.
The tribunal has been hearing an unfair dismissal case taken against the society by former Irish Nationwide branch manager in Monaghan, Brendan Beggan (48). He was dismissed in July 2009 for failing to repay a loan.
He has said the culture in the bank was that staff applying for loans did not have to fill in their financial details on application forms and affordability was not established.
In earlier evidence, home loans supervisor at the building society from 2000 to 2008, Olivia Green, said it operated different lending criteria depending on who the applicant was, for members of government, the media and close friends.
Ms Green, who is Mr Beggan’s partner, left the society in 2008 and sued for constructive dismissal.
She settled her case in April 2009.
Mr Beggan, who was branch manager from 1996, had a home loan from the institution and in 1999 was approved for a further IR£90,000 (€114,300) loan to buy land at Killylean, Monaghan, at a time when he was earning £27,000.
In 2002 he borrowed a further €63,500. He was also approved for a €360,000 loan in November 2003, yet €382,000 was drawn down.
Mr Fingleton told the tribunal yesterday that loan applications that did not meet the criteria for approval were submitted to “a higher authority” for approval, in exceptional circumstances. He agreed the higher authority was himself.
Counsel for Mr Beggan, Mary-Paula Guinness, put it to Mr Fingleton that he had personally approved the loans to Mr Beggan.
“If I did approve the loans, the procedure would be that the loans manager would come to me and if he assured me that everything had been complied with according to the regulations of the society, I would have accepted that and given approval on that basis.
“I relied on the loans manager to examine everything.”
Ms Guinness said Mr Fingleton was trying to pass on responsibility. “It’s your responsibility and to say otherwise is not really satisfactory.”
Mr Beggan has given evidence that he met Mr Fingleton in 2006 when he became unable to meet loan repayments and said the chief executive told him to continue paying the mortgage by salary deductions and to finish a property development, to sell it and clear his loans with the profits.
Mr Fingleton said yesterday he never spoke to Mr Beggan about his loans and never socialised with him. He said he became aware of Mr Beggan’s high loan exposure of up to €1.5 million and commissioned an investigation into his loans.
Mr Beggan was suspended in January 2009 and dismissed six months later.
He has said the relationship with Mr Fingleton became “frosty” after his partner, Ms Green, gave evidence against the society in the High Court.
Ms Guinness asked Mr Fingleton if it was his policy to approve loans at his “discretion” that did not have to be repaid.
“Absolutely not,” he replied.
“I want to refute in the strongest possible terms that I ran Irish Nationwide as a personal bank. This is a slander and absolutely untrue. I ran the society in the best possible manner compatible with the requirements and obligations of the board.
“Also the suggestion that I gave loans to some customers that they would not have to pay back is a totally outrageous accusation and totally untrue.”
The case continues.
