AIB executives refute allegations

ALLIED Irish Banks lawyers told the High Court yesterday that senior bank executives strongly refute allegations by another executive, Séamus Sheerin, that he is being scapegoated for the failures of others in connection with the foreign exchange overcharging scandal in the bank.

The court heard that Aidan McKeon, a director of AIB and now managing director of AIB Group UK, entirely rejected claims by Mr Sheerin, former general manager of AIB’s strategic development unit, that Mr McKeon had instigated the overcharging measures.

Mr McKeon conducted a disciplinary hearing into allegations against Mr Sheerin, which concluded with a recommendation that Mr Sheerin be dismissed.

Mr McKeon was not the subject of recommended disciplinary proceedings following an investigation into the overcharging issue, the bank’s law agent said in an affidavit yesterday.

All of the substantive and procedural allegations made against Mr McKeon by Mr Sheerin were rejected and Mr McKeon had no unresolved issues in the matter.

The only mention of Mr McKeon in a Deloitte and Touche report into the overcharging issue was as a person interviewed in the course of their work.

AIB managing director Donal Forde was also “outraged” by the claims made against him, which were already examined and rejected during AIB’s own investigation process into the overcharging issue, the bank’s law agent said.

Mr Forde had said he was never informed by Mr Sheerin of the foreign exchange notification discrepancy.

After Maurice Collins SC, for AIB, told the court yesterday there would be no alteration, prior to April 4, in the position of Mr Sheerin, Mr Justice O’Sullivan decided there was no need to continue an interim order granted to Mr Sheerin last Friday restraining his dismissal.

In those circumstances, the judge adjourned the proceedings by Mr Sheerin against AIB to April 4.

Mr Collins indicated the sides may apply before that date to the President of the High Court for an early hearing of Mr Sheerin’s application for an interlocutory order against the bank, which would maintain the status quo pending the outcome of the full proceedings.

He said he wanted to note, as a matter of fairness but not as a comment on the merits of the case, that the bank rejected the allegations. The proceedings arose after Mr Sheerin last Friday secured, on an ex parte basis, an interim order restraining his dismissal as general manager of the strategic development unit.

Mr Sheerin claimed he was being “scapegoated” for overcharging by the bank of its customers.

In an affidavit, Mr Sheerin, 41, who has been suspended since May 2004, said he was told in a letter last week that he should be dismissed with immediate effect.

The letter also referred to his having a right of appeal. He claimed he had simply inherited in 2002 the problem of overcharging in connection with foreign exchange transactions, which problem dated back to 1995.

In circumstances where he, in liaison with others, was engaged in managing it, it was utterly perverse he be subjected to any sanction at all.