Sureties held against Mr Charles Haughey's outstanding debt of £110,000 were released in 1990 by AIB without the knowledge of the then chief executive of the bank.
Mr Gerry Scanlan said he did not authorise the release of the sureties, which included title deeds to Inishvickillane Island, Co Kerry, and lands in Lislarry, Co Sligo. Nor was he aware, before the tribunal began, that the bank was holding the sureties, which were to have been kept until the debt was cleared.
This was despite the fact that the file on the accounts was kept in a safe in Mr Scanlan's office from 1987.
Mr Scanlan said he became chief executive of the bank in 1984 and received the Haughey file from the assistant chief executive, Mr J.J. McAuliffe, when the latter retired three years later.
"I put it into the safe in my office, undisturbed, because quite simply as far as I was concerned it was history. I didn't need to read it or know what was in it - I knew the broad outline of what had been agreed - and it rested there until I was approached in 1990."
Mr Scanlan said he gave the file to a colleague following inquiries made to the bank by solicitors acting on behalf of Mr Haughey. Mr Scanlan believed the inquiry might have involved a small life insurance policy dating from 1954 which was due to mature in 1990.
The bank has since confirmed that securities held against the former Taoiseach's debt were returned to Mr John S. O'Connor, solicitor, on February 14th, 1990. Mr Scanlan said he was surprised to discover there were sureties held against Mr Haughey's debt. He said as far as he knew the £110,000 was regarded as a "debt of honour", which was not included in the bank's profits.
He said he believed as "a matter of honour that Mr Haughey would clear the £110,000 outstanding from sales proceeds of the Abbeville lands and limit it, as far as I could see, to 10 per cent of any particular sale".
He added: "I have been rather surprised, in reading this correspondence, to have it brought to my notice that there were other securities held."
Counsel for the tribunal, Mr John Coughlan SC, asked whether he thought the debt of honour was an unusual provision made by the bank. Mr Scanlan replied: "In my experience I have never seen it written down before."
Mr Coughlan: "Bearing in mind the history of this account it seems even more unusual, doesn't it?"
Mr Scanlan: "There is a hope factor I suppose."
The witness was also questioned about a 1983 AIB press release denying a story in the Evening Press about the debt. Mr Scanlan said the press release "would appear to be designed to quell speculation". He said AIB had been concerned about leaks from unnamed sources within the bank.
He had no role in the document as he was not on the board until the following year.
