AIB could be forced to attend hearings
The Joint Committee on Finance and the Public Service is also writing to bank chairman Dermot Gleeson to protest that the AIB’s chief executive, Michael Buckley, had twice snubbed an invitation to appear before a hearing yesterday.
Mr Buckley informed the committee earlier this week that AIB had a difficulty with the timing of the invitation, although the bank was happy to answer any questions on the issue. AIB claims it would be “more useful and appropriate” for such a meeting to take place after the conclusion of its own internal report into the latest banking scandals.
The committee decided yesterday to seek advice on applying for powers granted under the Committees of the Houses of the Oireachtas (Compellability, Privileges and Immunities of Witnesses) Act 1997. It requires all committees, excluding the Public Accounts Committee, to seek a resolution which needs to be passed by both the Dáil and Seanad to compel witnesses to attend hearings.
However, chairman Seán Fleming (FF) acknowledged it was unlikely that such a measure could be passed in advance of AIB’s own suggestion of appearing “voluntarily” before the committee in July.
Nevertheless, Senator Joe O’Toole (Ind) argued it was necessary to go through the procedure as AIB had treated the committee “with contempt.” He said the bank’s refusal to attend the meeting had shown the committee to be “impotent as eunuchs.”
Several members of the committee voiced anger at Mr Buckley’s claims that any discussion on AIB's charging practices would involve speculation in advance of the completion of its own inquiries. Mr O’Toole pointed out that any questions which the committee would have posed to AIB officials would not have comprised the bank's investigations into its overcharging practices.
The AIB chief executive argued that there was a risk of affecting the rights of individuals. He also said it was similarly essential for AIB officials appearing before the committee to “have the benefit of the AIB Board's consideration of the outcome of the investigation”.
“AIB has told us to jump in the lake.” observed Senator Shane Ross (Ind). He claimed there was nothing wrong in the committee launching a full parallel investigation to those being conducted by both AIB and the Irish Financial Services Regulatory Authority.
Fine Gael finance spokesperson Richard Bruton said the issue had highlighted how the Oireachtas had failed in terms of its powers to compel witnesses to attend hearings and the lack of penalties which could be imposed on financial institutions.
Mr Bruton also cautioned the committee about pursuing AIB's non-attendance further as he believed the bank had broken the law on two occasions. He reminded his colleagues that the matter could yet come before the courts.
However, Fianna Fáil TD, Ned O'Keeffe took the minority view that AIB had been “quite fair” in its dealings with the committee.
Mr Fleming questioned whether the board of AIB were helping themselves by refusing to appear.
