MINISTER FOR Finance Brian Lenihan would do everything in his power to prevent €40 million in bank bonuses being paid out by AIB, Minister of State for Children Barry Andrews has said.
However Mr Andrews said it seemed likely that the bonuses would be paid.
The High Court last month ordered that AIB would have to pay backdated bonuses to some staff after the bank failed to enter a defence against a case taken by trader John Foy.
Opposition politicians yesterday said the Government should stop the payments and should sack the board of AIB.
Mr Andrews said on RTÉ radio's This Weekprogramme yesterday he "hoped it was a joke" when he heard that €40 million in bonuses would be paid.
“I understand that Minister Lenihan will do whatever is possible within the law to try to prevent this.
“He announced last week that he would apply a 90 per cent tax against bonuses, which is a bit after the fact. To be honest, it seems that this money will be paid out.”
On the same programme, Fine Gael’s Leo Varadkar said AIB should refuse to pay out and if it did not, the Government should refuse to keep funding the bank.
“This was the height of the period where the most reckless lending was occurring . . . they might be able to withdraw it on that basis – to say that the bonus was given on false pretences.”
The bank could also plead inability to pay, Mr Varadkar said.
Sinn Féin finance spokesman Pearse Doherty said the directors appointed to represent the public interest had serious questions to answer.
“We were told we were appointing people on behalf of the Minister for Finance on to this board and everything would be fine. Clearly it is not fine.”
Mr Lenihan should have ensured a defence was lodged against the case, he said.
Labour’s Pat Rabbitte said Mr Lenihan should now fire the board of AIB, with the exception of chairman David Hodgkinson.
“By deciding not to contest the claims, it was AIB, and not the High Court, that determined that these bonuses would indeed be paid.
“It is clear that, true to form, AIB has pulled the wool over Brian Lenihan’s eyes.
