Initial pace of bank inquiry defended

Fionnán Sheahan, Political Correspondent

The investigation into AIB’s overcharging was sparked by information passed on by a so-called whistleblower.

AIB says it is making it easier for potential whistleblowers to report alleged wrongdoing or unethical behaviour at the bank by setting up a confidential external helpline.

AIB chairman Dermot Gleeson said yesterday that he was contacted anonymously by a number of individuals in recent weeks within the bank passing on information but he did not know if one of these was the original whistleblower.

The bank says that staff who want to raise ethical issues outside their immediate management can go directly to senior management, the chief executive or the chairman. Also, staff can contact a confidential ethics helpline staffed by AIB personnel.

But now the bank is hiring a British-based company to operate a confidential external whistleblowers’ hotline.

“It will also be emphasised to staff if, for any reason, they do not wish to use any of these channels they should contact the regulator,” the bank said.

AIB group chief executive Michael Buckley said the bank had to “tear up the floorboards” to look at its charging and that the management wanted staff to inform them of anything wrong. “That is probably the most worrying thing about all of this - that someone could not go to myself or the chairman,” he said.

The Irish Financial Services Regulatory Authority denied it did not act swiftly enough when the whistleblower informed it of the overcharging.

RTÉ chief news correspondent Charlie Bird, who broke the story on the overcharging, said yesterday that he was contacted by the whistleblower as the individual was not impressed by IFSA’s reaction.

But IFSRA chief executive Liam O’Reilly said he was puzzled by Mr Bird’s remarks and he believed the regulator had responded quickly and appropriately.

“We have got no hint at all that he is unhappy with the way the investigation is going,” he said.

Nonetheless, Mr O’Reilly said he would see no problem at all with a whistleblowers bill, offering protection to people reporting illegal or unethical activities in companies, but the law would have to be carefully handled.

The changes to the reporting system operated by AIB was welcomed by Mr O’Reilly, who added that a small number of other whistleblowers had contacted the regulator with allegations of wrongdoing.

According to AIB, when the foreign exchange charges issues emerged, the board and management started a comprehensive investigation “All issues identified have been reported to the financial services regulator in a timely fashion and details are included in their report published today.”