National Irish Bank has said it will not be publishing the findings of its internal inquiries into the controversies at the bank until the various State inquiries have been completed.
Following the eruption of both controversies the bank's sale of offshore bonds and later the improper loading of interest onto customer's accounts the bank announced it was initiating its own inquiries and that the findings of these inquiries would be published. The High Court subsequently appointed two inspectors to the bank. The Central Bank and other agencies are also making inquiries.
The report on the bank's sale of the CMI bonds has been considered by the board, but the bank has now said it will not publish the findings pending the completion of the various other inquiries. A statement "may" be issued.
"It is very difficult in our view to come out into the public domain with our views when other inquiries are under way," said Mr Ron Burke, group corporate relations general manager with the bank's parent, National Australia Bank (NAB). Similar issues arise with the Arthur Andersen report into the overcharging issue.
Arthur Andersen was engaged by the bank to inquire into the interest loading and fee loading allegations made in a RTE report broadcast in March. The two inspectors subsequently appointed by the High Court were asked to inquire into both the interest and fee loading issues and the sale of the CMI bonds.
The inspectors are to produce an interim report for the High Court on June 22nd. The Arthur Andersen report is still a number of weeks from completion, according to NIB. The bank has already admitted that interest loading occurred in a number of branches. Mr Grahame Savage, NIB chief executive, would not say yesterday if the Arthur Andersen inquiry has established whether fee loading also occurred.
The bank has set up a special centre in Camden Street to deal with the demands of the various investigations and the enquiries it is receiving from its customers. Mr Savage questioned the "equity" of what had happened with NIB. He asked why inspectors or inquiries had not been launched after similar allegations had been made against other financial institutions.
"There have been questions about their arrangements and there were no inquiries with them." He asked where was the precedent for "six or seven" investigations being launched into the operations of a company.
Asked why the bank still referred to "allegations" when it had already admitted there were problems with the CMI bonds and with interest loading, Mr Burke said there was "no substance" to the broad allegation that interest loading was systemic or widespread within NIB. He also said there was no substance to the allegation that the sale of CMI bonds had been "conceived as a tax evasion vehicle".
Mr Burke said he was in Ireland for two weeks to help deal with the issues confronting NIB and because the NAB chief executive, Mr Don Argus, had asked him to come. "We are confident that we can now begin the rebuilding process," he said. "It is not the case that the group has any doubts about this bank."
Asked about the recent comments by Mr Argus, that the bank would think seriously "about how we can get some value out of the allegations that have been made against us that have proven not to be correct", Mr Burke said this meant he believed they could rebuild the brand into a more efficient bank. The group has announced an Aus$300 million (£182 million) restructuring of its worldwide operation, in order to make it more efficient.
