The following is the text of a memo which Mr Michael Buckley wrote to staff on Thursday, after the latest AIB revelations.

CEO Update 36

Dear Colleague,

You may have seen a statement we have just made which is mainly about an issue around possible tax evasion by a small number of senior executives during the period 1989-1998.

This will generate a huge amount of comment and coverage in the media in the coming days and this is understandable.

The main areas of focus are likely to be:

• the identity of the individuals involved (they cannot be named for legal reasons);

• what this says about the culture of AIB.

The media release gives the full details of the issue and how it has been dealt with.

I am sorry that I have to write to you with such news. But there are some key points I want to stress to you this afternoon.

Firstly, this issue was brought to the attention of senior management and our board in September 2003. We immediately contacted the authorities.

The investigation was carried out in full consultation with the regulator.

Disciplinary proceedings are under way within AIB arising from the investigation.

I know you will be asking "When will this all end?" All I can say is that this is the only issue, aside from the matters covered by the FX and related charges investigation, and that is in discussion between ourselves and the regulator.

I am determined that we will face up to all these issues from the past and deal with them in a proper way. I am adamant that we will never again accumulate such issues for a future generation of AIB staff and management.

Whatever changes are needed in culture, people, organisation and practice will be made to ensure that we achieve this vital objective.

Michael Buckley,
AIB group chief executive