AIB ‘scapegoat’ claim case settled

A SENIOR AIB executive, who alleged he was being made the scapegoat for the bank’s overcharging scandals, will resign following an out-of-court settlement.

Seamus Sheerin, 41, had claimed he was being set up as the fall guy in the €34 million fiasco and sought a High Court injunction to prevent the bank from sacking him over his role in the affair.

After nearly four hours of negotiations yesterday between Mr Sheerin’s legal team and the banks’ lawyers, a settlement was agreed and both sides asked Mr Justice Philip O’Sullivan to have the matter struck out with no further order.

It was unclear last night if Mr Sheerin has received a windfall payment but sources said that AIB “didn’t throw a chunk” of money at Mr Sheerin and he will leave later this week. Mr Sheerin is believed to earn close to €300,000 in salary and bonuses.

A spokesman for AIB said: “AIB confirms that the action taken by Mr Seamus Sheerin to prevent his dismissal from the bank was struck out in the High Court by consent.

“Mr Sheerin made serious allegations against senior executives of AIB. These allegations were rejected by the AIB board following an independent investigation and rebutted in the proceedings.

“Mr Sheerin is to resign from the bank and has been given severance terms, which do not go beyond those available had he been dismissed from the bank.”

A source close to Mr Sheerin said the matter had been resolved to his satisfaction.

Mr Sheerin, general manager of the bank’s Strategic Development Unit (SDU), left the court yesterday without making comment. He was flanked by his wife Elizabeth and other members of his family.

Last month, Mr Sheerin obtained a interim injunction preventing the bank from sacking him from his €10,000 a month after tax position over his role in the overcharging affair.

In an affidavit at an earlier court appearance, Mr Sheerin alleged that Aidan McKeon, who now runs AIB’s British division had instigated the overcharging measures.

He also claimed that Donal Forde, who is chief executive of the Irish arm of the bank, had been told of the overcharging problem as far back as 2002.

Bryan Sheridan, AIB’s group law agent, said that Mr McKeon and Mr Forde strenuously rejected Mr Sheerin’s allegations.

Mr Sheerin said he inherited this overcharging issue in 2002 and had been working to correct it.

Mr Sheerin, who lives in south Dublin, had claimed he would be left destitute if he were dismissed.

Shareholders will get their first opportunity to question AIB chairman Dermot Gleeson on the overcharging issue at the bank’s annual general meeting next Wednesday.