NIB to give details of actions against staff involved in breaches

NATIONAL Irish Bank is to produce details of what disciplinary action, if any, was taken against staff involved in breaches in non-resident accounts, for the Public Accounts Committee DIRT inquiry.

The chairman of the committee, Mr Jim Mitchell, called on the bank's chief executive, Mr Don Price, to check the records, catalogue the breaches and "tell us what disciplinary action was taken in each of the cases, if any".

Mr Mitchell had asked about non-resident account irregularities discovered in the Blanchardstown branch in 1996 "even though a declaration had been signed [by the branch manager] confirming that fictitious or incorrectly named accounts did not exist in the branch". The bank's former chairman, Mr Alex Spain, had said he did not know whether disciplinary action had been taken against anyone in the branch.

Earlier yesterday the hearing was told that three branches - Blanchardstown, Co Dublin, Bailieboro, Co Cavan, and Mullingar, Co Westmeath - ranked as the worst of 24 branches with fictitious accounts.

Mr Price said they would look in the records for "any evidence of disciplinary action. I don't know the answer". Mr Price told Mr Bernard Durkan TD that the bank had appointed a money-laundering officer for the bank.

"That money-laundering officer in July alone attended nine workshops for our staff making it clear to them the requirements of the money-laundering officer." Mention had been made of the bank's risk rating system which went from one star to five stars.

Mr Pat Rabbitte put it that two stars were matters of significance requiring attention, three stars was serious, and four stars "very major. Five stars I suppose would be Charlie Bird in the foyer"

Later, Mr Price said he could not speak for the previous management but he could assure the committee today "I personally believe in compliance through personal conviction. It's got nothing to do with Charlie Bird or anyone else, and I think that it is quite clear to me that compliance for both myself and for this company will be achieved." Mr Philip Halpin, chief operating officer, said the bank was doing everything in its power to ensure it was "exemplary in terms of compliance".

He said: "We are doing it, chairman, because it is the right and proper thing to do. We are ensuring that our bank is beyond reproach as we move forward."

Mr Mitchell replied: "And so say all of us, but why so late?" Mr Halpin said he was not directly responsible for the retail network at the time but "we have responded, as we deem fit, to ensure that our bank is exemplary as we move forward and that we do not encounter these types of problems again."

The bank's chairman, Sir David Fell, told the committee the £1 million set aside to cover the total liability to the Revenue Commissioners for the 10 years up to 1998 did not include tax arrears for Special Savings Accounts.

There would be a further liability for that, he said, and they fully accepted there would need to be a further provision or an actual payment to cover arrears in relation to the SSA "administrative errors which you have seen exposed in this hearing".

Sir David assured the chairman just before the hearing finished that systems had been outlined which would ensure they were getting the procedures right and "getting the practices right on the ground". He expected there would be a further audit in due course and if that revealed further problems they would address them with the same vigour.

Chairman: "Well, if you pardon the pun, the road to Fell will not be just paved with good intentions." Sir David: "Suitable note to end." The hearing resumes on Tuesday with National Irish Bank.