A suggestion that NIB staff were advised of a policy suitable for “hot” money by a former investment analyst was dismissed as “absurd” today at the Cooper-Flynn libel trial.
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Ms Beverly Cooper-Flynn
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The court heard that Mr Patrick Cooney, who left NIB in 1996, had written a letter in October 1990 to the financial advice division suggesting that the Emerald International portfolio was suitable for people “whose money is hot”.
The letter was, however, not sent to the financial advisers due to stockmarket fluctuation resulting from the Gulf War, when people were less willing to invest. But, Mr Cooney did accept that he wrote the letter with the intention of circulating it.
Under cross-examination by Mr Paul O’Higgins SC, Mr Cooney said the word "hot" referred to the potential of a client as a "hot prospect" for investment, rather than meaning undeclared money which he accepted he understood it to mean today.
He said the idea that the word, in the context of his letter, referred to undeclared money, was absurd and added that the investment team was a "young gung-ho sales division" in 1990 and the terminology was different at that time.
However, Mr O’Higgins put it to Mr Cooney that there was a clear distinction between people with “hot” money and an investor who could be considered a “hot prospect”. He told Mr Cooney, “your words manifestly don’t hold water”.
Earlier this morning Mr Michael Darcy, former manager of the NIB financial advice division, continued to give evidence to the court. He denied ever seeing retired farmer Mr James Howard's file. Mr Howard has testified that he was advised by Ms Cooper-Flynn to invest money in a CMI portfolio which he knew was undeclared.
Mr Darcy said it was the official policy of the bank and his policy that such selling was not to be permitted. He also said that his division was "one of the most heavily audited units in the bank" and these reports were always satisfactory.
However he did say that there were some problems with a 1994 audit of the retail banking division relating to DIRT tax. He accepted that his division got its primary customers from the retail banking division.
Under cross examination by Mr Kevin Feeney SC, Mr Darcy said he was not aware that after the 1993 Finance Act it was incumbent on the bank to forward the names and addresses of CMI policy holders to the Revenue Commissioners.
He also said he was unaware of any relevant documentation passing from his department to any other to facilitate the transaction.
Today is the 20th day of Ms Cooper-Flynn's action alleging libel against RTÉ, journalist Charlie Bird and a retired farmer, Mr James Howard, Wheaton Hall, Drogheda, Co Louth.
She claims she was libeled in broadcasts in June and July 1998, and words used meant she had instigated a scheme intended as a means to evade the lawful payment of tax. The defence denies libel.
The case continues next week.