THE HIGH Court has disqualified former National Irish Bank chief executive Jim Lacey from involvement in the management of any company for nine years on grounds of unfitness.

Mr Lacey is facing a substantial bill for legal costs following the lengthy hearing of proceedings by the Director of Corporate Enforcement seeking disqualification of Mr Lacey, under section 160 of the Companies Act, over Mr Lacey’s conduct as chief executive and director of NIB between 1988 and 1994.

Mr Justice Roderick Murphy last April found various breaches of duties by Mr Lacey during that time were “grossly negligent” and that Mr Lacey’s conduct “constituted a fundamental failure of governance”.

Yesterday, after hearing from both sides, the judge said the appropriate period of disqualification was nine years.

During Mr Lacey’s time at the bank, matters were brought to his attention following internal audits that should, but did not, result in changes being implemented, he said.

He awarded the cost of the hearing against Mr Lacey.

After making his order, the judge was told Mr Lacey intended to appeal to the Supreme Court.

Earlier, Maurice Collins SC, for the Director of Corporate Enforcement, said the director was not advocating any particular period of suspension.

He noted that Mr Lacey was not applying for any particular reliefs, such as seeking to be allowed to stay on as a director of a particular company.

Mr Lacey’s solicitors had told the director that he had resigned any directorships in Irish-registered companies, Mr Collins added.

Declan McGrath, for Mr Lacey, said his client, since he left NIB, had been engaged in consultative work as a “senior banking specialist”.

There had been “no criticism whatsoever” of Mr Lacey’s “work, competence, ability or his integrity”, Mr McGrath said.

This is the second highest period of disqualification handed down to a former National Irish Bank executive arising from the overcharging and tax-evasion scandal at the bank.

Nigel D’Arcy was disqualified for 10 years in October 2005.

Barry Seymour was disqualified for 12 years in March 2007, however this was reduced to nine years based on mitigating factors.

Disqualification cases have been taken against nine former National Irish Bank directors and executives.

Seven actions, including the director’s case against Mr Lacey, remain before the courts.

The director had argued the order was justified on foot of the report of the inspectors who investigated the affairs of National Irish Bank and National Irish Bank Financial Services between 1988 and 1998.

The inspectors concluded the bank was involved in widespread tax evasion. They also concluded that the bank imposed unwarranted fees and interest charges on customers.

The director claimed there was “a catastrophic failure of governance” during Mr Lacey’s tenure as chief executive and he must bear ultimate responsibility for “very serious wrongdoing” by the bank.

Mr Lacey, Blackrock, Co Dublin, strongly opposed disqualification arguing it was unwarranted and would have major reputational consequences for him.

Since leaving NIB, he had been appointed to various State boards, including the Dublin Docklands Development Authority. He had also worked with the World Bank and was a director of two International Financial Service Centre companies.