Nine former National Irish Bank managers, including former chief executives Jim Lacey and Barry Seymour, are facing the prospect of disqualification as senior managers or directors over their involvement in the overcharging and tax evasion scandals at the bank in the 1990s.
In the first such action arising from any of the court inquiries or tribunals that have examined business practices in recent years, the director of corporate enforcement Paul Appleby went to the High Court yesterday seeking disqualification of the nine from acting as board members or officer of any company.
The case, which opened before Mr Justice Peter Kelly, will come before the court again in October.
The judge will decide whether the disqualifications should go ahead.
Mr Lacey, who is a friend of the Taoiseach, Bertie Ahern, and is a former chairman of the Irish Aviation Authority, was once one of the most prominent bankers in the State. He was found to have breached his duties by failing to ensure that the bank complied with its legal requirements.
He was the best-known business figure among 19 former officials and managers who were the subject of adverse comment by an inspectorate which found last year that NIB and NIB Financial Services Ltd had overcharged customers and facilitated and encouraged tax evasion.
Mr Seymour took charge of NIB in April 1994 after its then owner, National Australia Bank, sacked Mr Lacey, who later received up to £1 million in compensation.
It was claimed in court yesterday that Mr Seymour was responsible, with others, for the continuation of improper practices he inherited when he took over at the bank.
Mr Appleby has also taken action against Frank Brennan, former general manager of retail banking, and Michael Keane, former general manager of banking. He also wants to disqualify former head of retail Dermott Bonder, and former head of retail banking Kevin Curran, former regional manager Tom McMenamin, and former head of finance Patrick Byrne.
The other person named in the action is Nigel D'Arcy, former head of the financial advice and services division in NIB. Mr D'Arcy is consenting to disqualification.
The other nine have been given until September 30th to file responding affidavits with the court.
Mr Appleby declined to say yesterday whether he will take similar action against the 10 other individuals against whom adverse findings were made in the NIB report.
These people include the Independent TD, Beverley Flynn, expelled last year from Fianna Fáil, who was found by the inspectors to have facilitated tax evasion by selling offshore life assurance products as a secure investment for "hot" money.
Records in the Companies Office indicate that four of the men who are the subject of Mr Appleby's action are still active in the business world.
Mr Lacey is listed as a director of three companies: Citco Fund Services (Dublin); Forexconcept Fund; and Vega Invest Fund. He ceased to be a director of Axa Investment Managers Ireland last March.
Mr Keane is a director of six companies: Arcaid International; Connect Business Solutions; Connect II; Evolve Organisation Learning Consultants; Global Test and Survey Technologies; and Homeplanner Ireland Ltd.
Mr D'Arcy is listed as a director of two companies - Claesz Enterprises and First Arch Holdings - while Mr Byrne is a director of Business Consultancy & Advisery Services.
Mr Appleby's examination of the inspectors' report into the Ansbacher scheme, used to facilitate widespread tax evasion from the 1970s onwards, is still ongoing. He was also sent copies of the reports of the planning tribunal.
