Former NIB CEO disqualified from management

The High Court has disqualified former National Irish Bank CEO Jim Lacey from involvement in the management of any company for a period of nine years.

The Director of Corporate Enforcement sought a disqualification order against Mr Lacey under Section 160 of the Companies Act arising out of Mr Lacey's conduct as CEO and director of NIB between 1988 and 1994.

In his judgment last April Mr Justice Roderick Murphy found various breaches of duties by Mr Lacey during that time were "grossly negligent," and that Mr Lacey's conduct fell below the required standard and "constituted a fundamental failure of governance." Mr Lacey the court held should be disqualified on grounds of unfitness.

Today at the High Court the Judge said that the "appropriate period of disqualification was nine years". The Judge said that matters "were brought to Mr Lacey's attention, following internal audits" that should but did not result in changes being implemented.

After imposing the disqualification and awarding what are estimated to be substantial costs against Mr Lacey the court was informed that the businessman of Pine Haven, Grove House Gardens, Blackrock, Co Dublin intended to appeal the judgment to the Supreme Court.

In seeking the disqualification order the Director had argued such action was justified on foot of the report of the inspectors who investigated the affairs of NIB and NIB Financial Services between 1988 and 1998.

The inspectors concluded the bank was involved in widespread tax evasion and imposed unwarranted fees and interest charges on customers.

The Director claimed there was "a catastrophic failure of governance," during Mr Lacey's tenure as CEO and Mr Lacey must bear ultimate responsibility for "very serious wrongdoing" by the bank.

Mr Lacey had opposed any disqualification order arguing it was unwarranted and would have major consequences for him.