Inquiry into bank manager’s handling of developer’s accounts put on hold

AN INVESTIGATION into an Irish Nationwide Building Society (INBS) manager’s handling of the accounts of a property developer is to remain on hold until next week, the High Court heard yesterday.

Noel Harrington, manager of the INBS branch at Cruise’s Street, Limerick, has been suspended on pay and has brought court proceedings seeking to lift that suspension and halt the investigation. He claims approval was given at INBS head office for the accounts of the developer.

Mr Harrington, of the Hermitage, Mill Road, Corbally, Limerick, claims he has not been told of the investigation’s terms of reference, although it has been going on for six months.

The case was before the High Court yesterday after Mr Harrington was given permission on Monday to serve notice of the proceedings on the INBS.

After Ms Justice Mary Laffoy was told INBS was prepared to put the investigation on hold until Monday, the judge adjourned the proceedings until then.

In his proceedings, Mr Harrington claims an investigation commenced last September concerning his conduct at the branch. A meeting took place with INBS chief executive Michael Fingleton at which Mr Harrington said he co-operated completely with every single request made to him.

The investigation focused on a series of accounts run by a developer who allegedly owes around e36m to INBS, Mr Harrington said. Mr Harrington said the accounts were mandated and controlled by the INBS head office rather than by him.

The court heard Mr Harrington was suspended on pay on January 26, with the keys of the branch taken from him. The INBS later launched a purported independent investigation into these matters but Mr Harrington had failed to find out if he was being disciplined or what particular facts were being alleged against him, his counsel said.