Former NIB manager disqualified from company management

A former senior manager with National Irish Bank has been disqualified by the High Court for a period of four years from involvement in the management of a company on grounds of unfitness.

Today at the High Court Mr Justice Roderick Murphy disqualified Patrick Byrne (aged 49), from St Helen's Road, Booterstown Co Dublin, who was part of senior management within NIB and National Irish Bank Financial Services Ltd (NIBFS) which were responsible over the entire 10-year period of the NIB investigation for certain serious findings of improper practises.

In a judgement delivered earlier this year Mr Justice Murphy found that Mr Byrne, NIB's Head of Finance and Strategy from 1994-98, had "displayed a lack of commercial probity" with regard to the discharge of his responsibilities in relation to the discharge of his responsibilities to both the company and its creditors which include the Revenue Commissioners.

The judge was granting an application by the Director of Corporate Enforcement for a disqualification order under Section 160 of the Companies Act.

The judge rejected the argument put forward by Michael Collins SC for Mr Byrne that no period of disqualification should be imposed.

Counsel said that no finding of dishonestly or negligence had been made against his client, and that Mr Byrne had suffered as a result of the proceedings.

The judge agreed to put a stay on the order in the event of an appeal to the Supreme Court. Mr Justice Murphy also awarded the Director his costs of the action.

The applications to disqualify arose from the investigation by inspectors into the affairs of NIB and National Irish Bank (NIBFS) between the late 1980's and 90's.

The inspectors concluded in 2004 that NIB and NIBFS were involved in a number of improper practices and that a number of members of senior management bore responsibility for some of these practices.

They concluded that senior management figures failed to deal decisively with bogus non-resident accounts, the improper charging of interest and CMI policies.

Previously Mr Frank Brennan, of Ardglas, Dundrum, Dublin, was disqualified for six years, Mr Nigel D'Arcy, of Castledillon, Straffan, Co Kildare consented to disqualified for 10 years and Mr Barry Seymour, former executive director of NIB from April 1994 to July 1996, has been disqualified for nine years. Michael Keane (aged 52), with an address at Corr Castle, Howth, Co Dublin was disqualified for three years.

Disqualification proceedings are also pending against former NIB CEO Jim Lacey. Yesterday the court heard that a hearing date for that action has provisionally been agreed between the Director and Mr Lacey's legal representatives proceedings in April 2009. That hearing is expected to last for three weeks.