Suspended AIB manager seeks damages

A senior manager with AIB was suspended from his job following an allegation that he facilitated alleged tax evasion at the former League of Ireland club, Galway United, the High Court heard yesterday.

Sean McHugh, aged 54, who was employed as a senior manager at AIB’s business centre Galway, has sued AIB for damages arising out of his suspension on full pay in Sept 2012. He claims the suspension was “in retaliation” for the bullying claim made against his superior.

He has asked the court for various declarations including that his suspension is null and void. He claims his suspension is wrong, has effected his health, and damaged his reputation.

AIB denies Mr McHugh, of Ballard, Barna Co Galway was wrongfully suspended, and says he has been subject of a lawful inquiry into allegations of misconduct.

He was suspended arising out of allegations of a conflict of interest, over the sanctioning of loans to individuals who were directors of Galway United. The money, which the court heard totalled €100,000, was injected into the club by the directors.

Under cross-examination yesterday by Brian O’Moore SC, for AIB, Mr McHugh accepted the alleged conflict of interest was still a live issue with the bank after he was first questioned about the matter in January.

Mr McHugh said he believed the allegation against him was a “kickback” for making a bullying complaint against his superior, John Heapes, in March 2011.

Mr McHugh said he fully answered questions about the Galway United accounts following queries from Mr Heapes in Jan 2011. He said he sought legal clarification from his solicitor that the loans sanctioned to directors of Galway United did not breach AIB’s regulations.

He was suspended on pay in Sept 2012. It was only after legal proceedings were launched last April that the bank provided the reasons for his suspension.

Mr McHugh, who denies any conflict of interest, was the club’s licensing officer, and held that voluntary position with the full knowledge of AIB. He says the loans were made for valid reasons and had the approval of his superiors.

Mr McHugh said there was no evidence of tax evasion by the club, and said evidence would be given it was tax-compliant. He told counsel he never had any day to day involvement with the running of the club.

In his March 2011 action, Mr McHugh claims he was bullied by Mr Heapes, who was made AIB’s acting head of Galway Business in Oct 2010. Mr McHugh says he and other staff were isolated and subjected to outbursts of rage by Mr Heapes.

The case continues.