The Director of Corporate Enforcement has applied for a High Court order disqualifying a former senior manager with National Irish Bank from involvement in the management of any company on grounds of unfitness.
In proceedings before Mr Justice Roderick Murphy, Michael Keane, Corr Castle, Howth, Co Dublin, who was general manager of banking at NIB between April 1993 and August 1996, has disputed aspects of the findings of the inspectors into the affairs of NIB, which apportion responsibility to him for certain improper practices at the bank in the 1990s.
The application is one of nine brought by the director against various NIB executives and managers on the basis of the July 2004 report of inspectors Tom Grace and John Blayney, which made serious findings of improper practices in NIB and National Irish Bank Financial Services Ltd.
The inspectors concluded such practices facilitated tax evasion and the levying of unwarranted fees and interest charges, and that senior management within NIB were aware of, but had failed to take appropriate or adequate action to stop such practices.
The disqualification proceedings, under Section 160 of the Companies Act 1990, have been taken against Jim Lacey, Pine Haven, Grove House Gardens, Blackrock, Co Dublin; Barry Seymour, Beaumond, Amersham, Bucks, England; Kevin Curran, Avondale Court, Blackrock, Co Dublin; Michael Keane, Corr Castle, Howth, Co Dublin; Frank Brennan, Ardglass, Dundrum, Dublin; Tom McMenamin, College Grove, Castleknock, Dublin; Patrick Byrne, St Helen's Road, Booterstown, Co Dublin; Dermott Boner, Chesterfield Avenue, Castleknock, Dublin and Nigel D'Arcy, of Castledillon, Straffan, Co Kildare.
Mr D'Arcy consented to a disqualification order in his case and was disqualified for 10 years. The remaining eight have all separately opposed the applications.
In the proceedings concerning Mr Keane, he has said in an affidavit that he was not responsible for the initiation of any of the practices in respect of which complaints were made by the inspectors.
He noted the inspectors had found that he bore "primary responsibility" (with another executive, Frank Brennan) in respect of the improper charging of fees.
The inspectors also stated that Mr Keane had "some responsibility" for the opening and maintaining of bogus non-resident accounts in NIB branches, the deduction of Dirt tax for special savings accounts at a reduced rate, notwithstanding the fact that applicable statutory conditions were not observed, and the promotion of CMI policies as a secure investment for funds undisclosed to the Revenue Commissioners.
Mr Keane said he "flatly rejects" the inspectors' use of the word "responsibility" to mean culpability.
While he "undoubtedly had a certain responsibility" in the sense of a supervisory managerial role, he was "by no means the only party with such responsibility", he said.
Mr Keane also said the matters which formed the subject of the inspector's report were, in so far as they related to him, activities that accounted for no more than 10 per cent to 20 per cent of his overall functions.
When he became aware of a need "to improve practices," he took "immediate and decisive action" to deal with them.
The case continues.
