‘Nothing was leaked,’ says AIB

AIB last night denied it acted inappropriately in issuing a statement on May 27 2004 stating several previous key executives had tax issues to be resolved.

In an interview yesterday, former chief executive Tom Mulcahy implied the bank put out the statement to divert pressure away from the foreign exchange scandal engulfing it. He was one of those who put money in an offshore account when he worked for AIB in Britain.

A spokeswoman for AIB bank said she would not comment on the interview given by Mr Mulcahy, in which he stressed he was fully tax compliant.

When it was put to the bank the view at the time was it deliberately leaked the statement, and subsequently the names of some top executives, to take the heat off AIB, she said:

“There was nothing leaked, the statement was issued because it was the appropriate thing to do at the time. It was not done to protect anybody or anything.” The statement was issued because the investigation had been completed and the findings passed on to the Financial Regulator.

The bank said: “AIB issued a press release in relation to Faldor and other unrelated tax issues. This release followed the conclusion of AIB’s investigations into these matters, the consideration of the investigations’ results by the AIB Board at its meeting of 18 May 2004, and the subsequent submission of these results to the Financial Regulator.”

On that basis AIB has “nothing further to add“, the statement concluded.

Investigations continue into foreign exchange issues. The scandal cost Seamus Sheerin, head of the bank’s strategic development unit, his job.

The investigation involves up to 10 other middle-rank executives implicated in the exchange cover up which resulted in €34 million being repaid to customers.

Issues surrounding Faldor, which involved five former executives in the offshore banking scandal, has been resolved with the Revenue, she said. Former CEO, Gerry Scanlon and former deputy CEO, Paddy Dowling, since deceased were implicated in that scandal.

The other top executives included Roy Douglas, former head of the bank’s British operations; Diarmuid Moore, one time director of corporate strategy; and David Cronin, former treasurer of the bank’s US subsidiary Allfirst.