The State's corporate watchdog Paul Appleby is seeking to have individuals involved in the National Irish Bank (NIB) and Ansbacher scandals banned from holding company directorships. Barry O'Halloran reports.
Mr Appleby, who is the Director of Corporate Enforcement, revealed yesterday that he was set to take High Court proceedings to have some of those involved in the NIB and Ansbacher tax evasion schemes disqualified as company directors.
If he is successful, it will mean that they will be banned from holding positions as company directors or secretaries.
Ansbacher (Cayman) Ltd was an offshore vehicle used by a large number of wealthy Irish people to evade their tax liabilities.
The late Des Traynor, an accountant and financial adviser to former taoiseach Charles Haughey established the scheme.
Mr Appleby said he had begun disqualification proceedings against one of the directors of an Irish company, Kentford Securities, which was linked to Ansbacher.
He added that he was hoping that the case would get to court in the second half of the year, but said that the individual had begun proceedings to halt the action.
Mr Traynor used Kentford Securities to open accounts in Dublin banks which he then used in the early 1990s for the movement of money between offshore accounts and Irish residents who owned the money in those accounts.
In the case of National Irish Bank, Mr Appleby is likely to act against a number of the 19 people named last year in a report produced by two High Court-appointed inspectors, accountant Tom Grace and John Blayney SC.
It found that between 1988 and 1998, NIB facilitated tax evasion through the use of bogus non-resident accounts, fictitious accounts and offshore investments, including the Isle of Man-based Clerical Medical International (CMI) bonds.
The inspectors also established that the bank had improperly charged customers extra interest and fees.
One of those named was former Fianna Fáil TD, Beverley Flynn, whose father is former minister and EU commissioner, Pádraig Flynn.
When the report was published, Mr Appleby indicated that his office would seek to have a number of those involved disqualified.
Yesterday he said he had taken the preliminary steps necessary to begin the proceedings.
"We are waiting on final legal advice and we would hope to make a final decision on whether to proceed with disqualification proceedings against a number of people criticised in the inspectors' report," he said.
He added that the individuals involved had also begun proceedings of their own to halt any attempt at disqualifying them.
Those named in the NIB report were: Jim Lacey, former chief executive, NIB; Barry Seymour, former executive director, NIB; Philip Halpin, former chief operating officer, NIB; Frank Brennan, former general manager - retail banking, NIB; Michael Keane, former general manager - banking, NIB; Dermott Boner, a former head of retail, NIB; Kevin Curran, a former head of retail banking, NIB; Tom McMenamin, a former regional manager, NIB; Barry Grogan, a former area manager, NIB; Patrick Byrne, former head of finance, NIB; Paul Harte, former head of audit, NIB; Nigel D'Arcy, former head of the financial advice and services division, NIB; Patrick Cooney, former investment manager, financial advice and services division, NIB; Beverley Flynn, former financial services manager, NIB; Charlie McCarthy, former financial services manager, NIB; Patricia Roche, former financial services manager, NIB; Alistair Stewart, former financial services manager, NIB; Bob Wynne, former financial services manager, NIB; Frank Lynch, former financial services manager, NIB.