The purpose of this statement is to correct what I consider to have been an inaccurate portrayal in media coverage to date of my involvement in investments which it transpires were placed with an entity known as Faldor Limited.

In 1985, my wife invested funds with AIBIM [AIB Investment Managers\] in Dublin in respect of which AIBIM had sole and total investment discretion.

By 1989, these funds amounted to £74,000 and were transferred by AIBIM to Faldor Limited without our knowledge.

In March 1990, a further £40,000 was placed either by me or my wife with AIBIM and added to the original funds in Faldor Limited, again without our knowledge.

To that extent, and only to that extent, we found ourselves to be indirect and unknowing beneficiaries of the Faldor structure. which resulted in the generation of an unexpected tax liability. Until contacted by AIB compliance staff in relation to this matter in October 2003, neither my wife nor I had ever heard of Faldor Limited and we were unaware of any of its activities.

As far as we were concerned, our funds were placed with AIBIM in good faith to be managed in a proper and lawful manner in a taxed fund.

I retired as chief executive of AIB Group in December 1993. The funds were paid out to us in 1996.

Immediately subsequent to being contacted by AIB in October 2003, we contacted the Revenue to make an unprompted voluntary disclosure so that any liability arising could be determined and settled.

Though we may have had a cause of action against AIBIM in respect of the tax liability arising from its management of this investment, in light of my long-standing and valued relationship with AIB, we decided not to pursue such a claim and made full payment to the Revenue Commissioners in respect of all tax, interest and penalty liabilities.

I do not propose to make any further comment or statement on the matter.

May 31st, 2004