Parties seek action after latest AIB revelations

Political parties have reacted with scepticism to AIB's admission of irregularities in offshore dealings in the 1990s.

Political parties have reacted with scepticism to AIB's admission of irregularities in offshore dealings in the 1990s.

The Labour Party's spokeswoman on finance, Ms Joan Burton, said the bank's statement was "wholly inadequate".

"It is simply not good enough for the bank's management to go public with very limited information on practices that developed among senior staff in relation to one particular offshore investment vehicle," she said.

"The real issue that the Bank has to answer is how a group of senior staff felt that they could create a system like this for their own advantage with impunity in the general expectation that the risk of any penalty would be unlikely to arise.

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"The AIB must indicate, as a matter of urgency, the rank held by the 'senior executives' involved in this scandal, and their responsibilities."

Fine Gael's Deputy Leader and spokesman on finance, Mr Richard Bruton, called for the Irish Financial Services Regulatory Authority (IFSRA) to make a "full and clear statement regarding the state of AIB's operations".

"What we need now, rather than a constant drip-feed of information from AIB's internal review of practices, is for IFSRA to discharge its duties and publish a full regulatory health-check on the company."

"The key voice at this stage is now IFSRA, and this voice must be heard. There is no point in having a dog and barking."

Mr Caoimhghín Ó Caoláin of Sinn Fein said: "It is a scandal that AIB, with the other banks, has benefitted hugely from the Government's cut in Corporation Tax from 16 per cent to 12.5 per cent.

"AIB made a profit of €1,375 million in 2002 - the highest ever recorded for an Irish company. Now we are told senior executives have been evading tax."

Patrick  Logue

Patrick Logue

Patrick Logue is Digital Editor of The Irish Times