Former NIB finance chief opposes disqualification order bid

A FORMER head of finance with National Irish Bank is opposing an application by the director of corporate enforcement for a court order disqualifying him from involvement in the management of any company on unfitness grounds.

The director is seeking the order, under Section 160 of the Companies Act, against Patrick Byrne, who was head of finance with NIB from 1994 to 1998, arising from findings adverse to Mr Byrne contained in the report of the inspectors who investigated the tax evasion scandal in the bank in the 1990s.

Mr Byrne, of St Helen’s Road, Booterstown, Co Dublin, contends such an order is “entirely unreasonable” in his case and he has disputed the findings of the inspectors in his case, including that he shared responsibility for failures within the bank to uphold a culture of compliance, to comply with DIRT legislation and to address the bank’s retrospective liability to the Revenue.

The hearing of the Section 160 application opened yesterday before Mr Justice Roderick Murphy and is expected to last several days.

The application is one of nine brought by the director against various NIB executives and managers on the basis of the July 2004 report of inspectors Tom Grace and John Blayney, which made serious findings of improper practices in NIB and National Irish Bank Financial Services Ltd (NIBFS).

The inspectors concluded such practices facilitated tax evasion and the levying of unwarranted fees and interest charges, and that senior management within NIB were aware of but failed to take appropriate or adequate action to stop such practices.

The disqualification proceedings were also brought against Jim Lacey, Pine Haven, Grove House Gardens, Blackrock, Co Dublin; Barry Seymour, Beaumond, Amersham, Bucks, England; Kevin Curran, Avondale Court, Blackrock, Co Dublin; Michael Keane, Corr Castle, Howth, Co Dublin; Frank Brennan, Ardglass, Dundrum, Dublin; Tom McMenamin, College Grove, Castleknock, Dublin; Dermott Boner, Chesterfield Avenue, Castleknock, Dublin; and Nigel D’Arcy, of Castledillon, Straffan, Co Kildare.

Mr D’Arcy consented to a disqualification order in his case and was disqualified for 10 years. The other eight all separately opposed the applications.