Kenny criticised for failing to stop €3m golden handshake
Mr Kenny said he was “appalled” at the revelation about pay for AIB’s former managing director Colm Doherty but admitted there was nothing he could do.
The payment of Mr Doherty’s salary and severance package is expected to be reported soon in AIB’s annual report.
Mr Kenny told the Dáil that efforts were under way to find out how the severance package was agreed but the payment could not be stopped.
He said: “I don’t know who was party to the discussions about Mr Doherty’s contract, remuneration and bonuses. That’s gone. The payment has been made.”
Mr Kenny said he has ordered a check on whether public watchdogs were aware of Mr Doherty’s pay package, believed to have been agreed by the bank in late 2009.
The AIB director’s pay included a €432,000 salary, a year’s notice payment of €707,000 when his contract was terminated as well as a payment of €2m in lieu of a pension contribution, say reports.
But Socialist Party TD Joe Higgins rounded on the Taoiseach for failing to stop the payment.
“Can citizens have any confidence that your government is to make any change? You just stood up there and in response to a banker walking away with €3m into the sunset, [in a bank] that has been bailed out to the tune of €20 billion, you say you are appalled.
“Nothing will be done about this further bank robbery of €3m because there was a contract.”
Sinn Féin’s Gerry Adams called the package “obscene” and accused the Government of not having the will to stop it.
But Mr Kenny pledged that the passing of a planned referendum later this year would empower Oireachtas members to quiz the banking sector about payments.
Laws prevent the Oireachtas from forcing witnesses to give evidence.
Mr Kenny revealed a televised inquiry would get to the bottom of many decisions made in the run-up to the banking crisis.
“The only way we can deal with that is by having a referendum of the people to give this Oireachtas and its elected representatives the power to actually get to the root of these questions.”
Meanwhile, Labour’s Ruairi Quinn has hinted that Mr Doherty could voluntarily hand back part of his severance package.
