Third senior NIB official disqualified after investigation into tax scandal

A RETIRED senior manager with National Irish Bank was yesterday disqualified by the High Court for six years from involvement in the management of a company on grounds of unfitness arising out of the findings of an investigation into the tax evasion scandal at the bank in the 1990s.

Mr Justice Roderick Murphy said six years disqualification was the “appropriate period” for Frank Brennan, of Ardglas, Dundrum, Dublin, who is the third senior NIB official to be disqualified arising from applications by the Director of Corporate Enforcement in the wake of an investigation.

An inspectors’ report following that investigation made findings of improper practices in NIB and National Irish Bank Financial Services Ltd. Two other NIB officials — Nigel D’Arcy, and Barry Seymour — were disqualified for 10 years and nine years respectively.

Mr Brennan had opposed the director’s application and took issue with the many of the inspectors’ findings relating to him.

He argued it was unfair and unreasonable to attribute responsibility to him for “the malpractices of branch managers” identified in the report.

He claimed he had of necessity placed a high degree of trust in branch managers who were appointed by regional managers to carry out their responsibilities in an appropriate manner. His actions were reasonable having regard to the information in his possession at the time, he said.

Last month, Mr Justice Roderick Murphy found Mr Brennan and other senior management failed to deal decisively with bogus non-resident accounts, the improper charging of interest and with clerical medical insurance policies.

He found Mr Brennan was part of senior management responsible over a 10-year period for not just a “failure of control” but for “ignoring or facilitating tax evasion”.

The judge said he accepted Mr Brennan was “genuinely shocked” when he heard two RTÉ television exposes of bogus non-resident accounts and of fictitious accounts — “for which he bore no responsibility” — for the promotion of products.

However, to have learnt from RTÉ of two separate schemes of tax evasion unknown to him was, in itself, “indicative of a shortcoming in management and control”, the judge remarked. Mr Brennan, with others, failed “to lead decisively and to organise effectively”.

While there was insufficient evidence to show Mr Brennan had breached his “duty” as an officer of a company under the Companies Act, the court was satisfied, as a result of the failure to supervise and control while a director and as senior general manager, Mr Brennan’s “conduct” was such as to make a disqualification order appropriate.