NIB managers ‘guilty of wrongdoing’

THE main perpetrators of wrongdoing relating to bogus non-resident accounts in National Irish Bank in the 1990s were certain branch managers, including maverick managers, and it was incredible that the inspectors who investigated NIB did not hold them responsible in some manner, a retired NIB regional manager has told the High Court.

Kevin Curran said he believes the findings of the NIB inspectors that he, as a manager in NIB, bore responsibility with others for certain improper practices within the bank over a nine year period, are “incorrect”.

The corporate governance structure of the bank placed at all times “utmost responsibility” on NIB’s board of directors, the audit committee and auditors (internal and external), “all of whom were exonerated by the inspectors,” he said.

There was also an executive committee, of which he was never a member, whose function was making policy for, and management of, the bank and which “clearly had a significant role to play in the affairs of the bank”.

“I would also like to stress that the main perpetrators of wrongdoing were the managers who were directly involved in the matters giving rise to the inspectors’ report,” he said. Certain branch managers had apparently routinely dealt with dishonest declarations and apparently ignored audit reports directing them to address problems, he said.

Some managers had told him in face-to-face meetings there were no bogus non-resident accounts in their branches and he, “perhaps naively” took them at their word. He now believed they had done this because of competition from other banks who were “effectively promoting” non-resident accounts.

While accepting he had seen some audit reports referring to “irregularities” relating to non-resident accounts and other matters, Mr Curran said he was not aware of a “widespread practice” of opening bogus non-resident accounts.

Mr Curran made the statements in an affidavit read to the court by Maurice Collins SC, for the director of corporate enforcement, during the hearing of the director’s application an order restraining Mr Curran from involvement in the management of a company on grounds of unfitness.