An interim report from the inspectors inquiring into National Irish Bank is to be presented to the High Court next week.
Mr Justice John Blayney and Mr Tom Grace are to present a report on their inquiries to date concerning the sale of offshore bonds by National Irish Bank Financial Services Ltd, the division of the bank where the Fianna Fail TD, Ms Beverly Cooper-Flynn worked. The report is to be presented on Tuesday next.
While the inspectors' inquiries into the sale of the bonds and the overcharging of customers through interest and fee loading are currently being hampered by a legal action taken by approximately 130 former and serving managers and senior executives, it is still likely significant progress has been made in relation to the sale of the bonds.
The legal action by the employees concerns their right not to have to answer questions which might be self-incriminating. The High Court has already ruled in the inspectors' favour but the matter is now being appealed by the employees to the Supreme Court. A hearing is likely in November.
In the meantime, it is understood the inspectors are not interviewing staff. However, they do have access to considerable documentation concerning the sale of the bonds, as well as to the interim report prepared by authorised officer Mr Martin Cosgrove who has already inquired into the sale of the bonds.
Mr Cosgrove found that approximately £50 million had been invested by customers through NIB in offshore bonds sold by three companies - Clerical Medical International, Isle of Man; Scottish Provident International, Isle of Man; and Old Mutual, Guernsey.
The bonds were not authorised for sale here. It is alleged that the investors may have used the bonds in an attempt to conceal their funds from the Revenue Commissioners.
On Tuesday the bank revealed details of two inquiries it had conducted into the overcharging issue. An Arthur Andersen report on overcharging at five branches found more than £96,000 about which there were doubts or no supporting documentation, while an inquiry by a team from the bank's parent group, National Australia Group, found another £34,816 in charges "lacked sufficient rationale". The amounts are now to be returned to the 370 customers affected, with interest.
