A retired audit manager of the Bank of Ireland claimed in the High Court yesterday that investigations had made clear that many transactions undertaken by the manager of the branch at Clanbrassil Street, Dundalk, Co Louth, had "all the hallmarks of money-laundering, assisting customers with tax evasion and other illegal activities".
Mr John Kennedy made his claim in an affidavit on behalf of BoI in proceedings brought against the bank by Mr John Higgins, manager of the branch.
Mr Higgins (50), of Brohatna, Ravensdale, Dundalk, claimed he was suspended by an official of the bank. He applied yesterday to Mr Justice Lavan for an injunction restraining the bank from continuing his suspension until after the hearing of his action.
The bank contends he is not suspended but is on "special paid leave" during the investigation.
In his affidavit, Mr Kennedy said central issues raised at meetings with Mr Higgins related to a significant fear that he had co-operated with a client in money-laundering and/or tax evasion; that the operation of an account in a false name constituted money-laundering or tax evasion; and that credit-card facilities were issued on information altered by Mr Higgins.
Mr Kennedy said a significant amount of cash was found in a briefcase in Mr Higgins's office, which was highly unusual and inappropriate. Mr Higgins might have an explanation for all of these matters but until he gave that explanation, there was a serious "cloud" in relation to his activities.
In another affidavit, Mr Higgins said he was shocked when told on April 20th, 2001, by Mr Patrick Byrne, a regional manager for the bank, that he was being suspended on full pay pending investigation.
Following a request from Mr Byrne, he handed over the keys of his office. He was told he must leave the branch immediately. He went to his office with Mr Byrne but was refused permission to take his personal belongings, including his passport, which he was in the process of renewing. Mr Byrne had seized the passport and stated: "This is very serious. Obviously you intend to fly the country."
Mr Higgins said he believed the actions of the bank officials were manifestly disciplinary. Even if his "suspension" was lawful, which it was not, he was entitled to know the reasons for the bank's actions.
He instructed his solicitor to protest at the manner of his suspension and to seek his reinstatement. He also sought an explanation of the bank's actions and said they had damaged his good name and reputation.
The hearing continues on Tuesday.