National Irish Bank has launched a strong attack on the handling of the investigations into its affairs by the Tanaiste, Ms Harney, accusing her of "hijacking" the process in a bid to damage the bank.
NIB chief executive, Mr Grahame Savage, said the bank had concerns about a number of procedural developments this week, including the "selective quoting" of information from an interim report into its offshore bond scheme by the Tanaiste, and her subsequent application to the High Court to seek an extension of the remit of the two inspectors already inquiring into overcharging practices at the bank.
The application, which will be heard on Monday, is unnecessary, according to NIB. "What has transpired is, we feel, damaging and unnecessary as far as the bank is concerned." Mr Savage said the bank had not seen the interim report compiled by Mr Martin Cosgrove, the authorised officer appointed by the Tanaiste,
"The bank has learned of its contents from media reports and press statements made by the Minister for Enterprise, Trade and Employment, Ms Harney, which would appear to quote selectively from the report."
Mr Savage said it appeared Ms Harney had chosen to take the "most public" and "most damaging" way of using that information. He also complained that the bank was not notified about the Tanaiste's application to the High Court, and suggested that this course of action was unnecessary. "The inspectors already have extensive powers and their terms of reference make it clear beyond doubt that they have powers to investigate any aspects of tax evasion which may have been facilitated by the bank. If any extension of powers was necessary, the inspectors are empowered to seek such extensions themselves."
Responding to NIB's claims yesterday, a spokesman for the Tanaiste said it would be inappropriate to make any comment ahead of Monday's court hearing.
Mr Savage also refuted information contained in the affidavit lodged on behalf of the Tanaiste to the High Court, which suggested NIB customers who purchased CMI policies were exposed to potential losses. There is no foundation for this suggestion, according to Mr Savage.
"The effect of this statement is to frighten policyholders without justification and to expose them to unnecessary distress and concern." The Tanaiste's is seeking to appoint the two inspectors, Mr Justice John Blayney and Mr Tom Grace, to the NIB subsidiary which operated its offshore bond scheme, National Irish Bank Financial Services Limited.
In her affidavit, Ms Harney argued the inspectors needed to have powers to talk to the people who invested in the scheme and bank officials associated with it.
Mr Savage insists that the bank has fully co-operated with the inquiries, and claims there was no need to make a court application to speak to people at the bank.
Up to 100 NIB employees and former employees have applied to the High Court to establish the conditions under which they can be interviewed by the inspectors.
