Conflict of interest concerns highlighted in IBRC case

Former Anglo Irish Bank chairman Seán FitzPatrick and senior executive Pat Whelan have told the Commercial Court they were concerned an action due to be heard later this month against the bank’s ex-head of lending may conflict with criminal proceedings pending against them.

Both men have been subpoenaed by Thomas Browne to give evidence as part of his defence to an action by Irish Bank Resolution Corporation, formerly Anglo, over €50m loans advanced to him.

Mr Browne, of Ferney Hill, Brighton Rd, Foxrock, Dublin, head of lending at Anglo between 2005 and 2007, claims he has no liability on grounds including, when the loans were made, the bank was alleg-edly aware the interest acquired by Seán Quinn in the bank was such as to undermine its stability and render his shareholding valueless.

The case is listed for hearing on Oct 16 but, when it was mentioned yesterday, Mr Justice Peter Kelly said he had received an email from solicitors representing Mr Fitzpatrick and Mr Whelan which referred to the pending criminal proceedings and the fact both had been summoned to appear as witnesses in the action involving Mr Browne and the bank.

The email pointed out there may be a conflict in relation to the two sets of proceedings, the judge said.

John Rogers, counsel for Mr Browne, said the evidence from Mr Whelan would be “critical” as he was a witness to evolving events in the bank, particularly during Sept and Nov 2007.

Mr Justice Kelly said Mr Justice Brian McGovern would hear the case. He said he would hear tomorrow the application to have the proceedings adjourned.