No names in second AIB scandal report

NOT one of the names under investigation as a result of the AIB foreign exchange banking scandal will be named in the second report by financial watchdog IFSRA into the affair.

It is believed three of the names under investigation are located at the bank's head office in Ballsbridge, but the bank refused to comment when contacted. Reports yesterday said up to 10 AIB bankers were under investigation over the scandal that cost AIB €50m of which €26m involved repayments to customers who were over charged.

IFSRA confirmed yesterday that the follow on report, the first was published in July, will not be delayed due to the threatened legal action that may follow from the upheaval at the country's largest bank. All of the implicated staff were written to over the affair and some have replied though their legal advisers.

One source close to the investigation said that it was a near certainty that no bankers would be named by the financial watchdog after some six months of investigation.

Instead the report will focus on what went wrong and why.

It is expected to be quite detailed in that regard. IFSRA will also give details of its investigations into the Faldor scandal involving former top AIB executives including one time chief executive, Gerry Scanlan, and Roy Douglas former chairman of Irish Life & Permanent.

Faldor is also being investigated by the Revenue Commissioners who have contacted the Virgin Island tax authorities in an attempt to get to the bottom of the tax scandal. Others under investigation for tax fraud under a scheme, set up by a former AIB subsidiary for senior executives, are the late Paddy Dowling, a former executive director of the bank, Diarmuid Moore, former director of corporate strategy and David Cronin, who was head of the bank's US treasury operations when trader John Rusnak lost nearly €700m of the bank's money on foreign exchange deals.

When the internal tax scandal broke, five other AIB executives including Tom Mulcahy, another former chief executive, were said to be facing serious questions over their tax affairs.

Mr Mulcahy resigned subsequently as chairman of Aer Lingus while Mr Douglas alleged the leak about Faldor came from a high level within AIB. Some of the named Faldor executives said they have dealt with the issue while Mr Scanlan said the Faldor account belonged to his wife.

He claimed also they had been "indirect and unknowing" beneficiaries of the company.

Mr Douglas said he thought the investment was part of his promotional package when at AIB and thought no more about it.