Former NIB bosses could face prosecution

FORMER executives of National Irish Bank could face prosecution for helping people set up bogus accounts.

The Garda Bureau of Fraud Investigation has been conducting its own investigation into the affairs of the bank, and a file is expected to be sent to the Director of Public Prosecutions (DPP).

Last week, High Court inspectors named 19 people who it said were helping customers set up bogus non-resident accounts to evade tax.

They also found the bank was overcharging customers on fees and interest.

The garda fraud squad has been examining NIB and its employees for some years and its investigation has focused on a possible conspiracy by managers to help customers avoid paying tax.

It has also emerged that Revenue Commissioners are looking at possibly bringing their own charges against the executives for assisting tax evasion.

Director of corporate enforcement Paul Appleby and the DPP will meet later this month to discuss whether criminal prosecutions can be taken against those named in the report, including former chief executives Jim Lacey and Barry Seymour, and the Mayo TD Beverly Flynn.

Criminal prosecutions could be difficult as the evidence gathered for the report cannot be used as it was given voluntarily.

It is more likely Mr Appleby will take civil action against the former executives to prevent them holding directorships of any company in Ireland and from working in the banking sector. Several individuals named in the report are still working for other financial institutions.

National Irish Bank itself faced the prospects of criminal action, though the most it can fined is €127,000.

Meanwhile, the Department of Finance rejected Sunday newspaper claims that it knew about the tax evasion activities at NIB 11 years ago and took no action. A department spokesperson said officials had solely contacted the banks about the 1993 tax amnesty. “There were rumours that certain banks were actively discouraging people not to avail of the tax amnesty and our officials rang around banks, including NIB, to remind them of their legal obligation of disclosure,” the spokesperson said.