Senior AIB executive settles 'scapegoating' action

A senior AIB executive who had sued the bank alleging he was being "scapegoated" for its foreign exchange overcharging scandal has settled his High Court action. Terms were not disclosed.

Seamus Sheerin, a former general manager of AIB's strategic development unit, had made a series of allegations against senior AIB figures, all of which were denied.

The settlement was announced yesterday to Mr Justice Philip O'Sullivan following a day of discussions between lawyers for both sides. No details were disclosed and neither side would comment.

At 4pm yesterday, Roddy Horan SC, with Michael Howard, for Mr Sheerin, told the judge the proceedings could be struck out in their entirety with no further order.

Mr Maurice Collins SC, with Mr David Barniville, for AIB, told the judge the parties were grateful to him for facilitating the ultimate resolution of issues without the necessity for a hearing.

Mr Justice O'Sullivan said he would strike out the action and would also strike out an application before the court yesterday for an order restraining Mr Sheerin's dismissal pending the hearing of the full action. The judge added he was very pleased the sides had reached agreement.

Afterwards, Mr Sheerin, who had attended court with his wife, would not comment but appeared very happy with the outcome of the proceedings.

Mr Sheerin's application for an interlocutory order restraining his dismissal pending the full hearing of his action had been due to open yesterday morning and was scheduled to run for two days.

At earlier court hearings, counsel for AIB had indicated there would be no change in the position of Mr Sheerin pending the matter being returned to court yesterday.

On that basis, the court had decided there was no need to continue an interim order granted on March 11th to Mr Sheerin restraining his dismissal.

At earlier hearings, lawyers for AIB said senior bank executives strongly rejected allegations by Mr Sheerin that he was being scapegoated for the failures of others in connection with the foreign exchange overcharging scandal.

The court was told that Aidan McKeon, a director of AIB and now managing director of AIB group UK, entirely rejected claims by Mr Sheerin that Mr McKeon had instigated the overcharging measures. The court had earlier heard that Mr McKeon conducted a disciplinary hearing into allegations against Mr Sheerin, which concluded with a recommendation that Mr Sheerin be dismissed.

In an affidavit, the bank's law agent, Mr Bryan Sheridan, said all of the substantive and procedural allegations made against Mr McKeon by Mr Sheerin were rejected and Mr McKeon had no unresolved issues in the matter.

Mr Donal Forde, the present managing director of AIB, was also "outraged" by the claims made against him, which had already been examined and rejected during AIB's own investigation into the overcharging issue, Mr Sheridan said. Mr Forde had said he was never informed by Mr Sheerin of the foreign exchange notification discrepancy.

The proceedings arose after Mr Sheerin (41), who has been suspended since May 2004, secured on an ex parte basis on March 10th an interim order restraining his dismissal as general manager of the strategic development unit. Mr Sheerin claimed he was being "scapegoated" for overcharging by the bank of its customers.

Mr Sheerin claimed he had simply inherited in 2002 the problem of overcharging in connection with foreign exchange transactions, which problem dated back to 1995. In circumstances where he, in liaison with others, was engaged in managing the problem, it was utterly perverse that he be subjected to any sanction at all, he said. Mr Sheerin also said he had informed his superiors of the approach that he thought was appropriate and at no stage did anyone suggest an alternative or criticise his approach.

He said he was forced in May 2004 to take leave from the bank. Later AIB had directed that Mr McKeon should inquire into the alleged wrongdoing charged against Mr Sheerin and it was Mr McKeon who ultimately decided that Mr Sheerin should be dismissed. Mr Sheerin said this occurred in circumstances where Mr McKeon himself was the subject of "unresolved issues" in relation to foreign exchange transactions. He believed he was being excluded from employment in order to facilitate others.