Ireland

Sequence of events that led to NIB inquiry

NIB Timeline: The High Court Inspectors' report was six years in the making

Fri Jul 30 2004 - 01:00

NIB Timeline:The High Court Inspectors' report was six years in the making. Here are the main events that led to the uncovering of the extent of corruption at the bank.

  • January 1998:An unidentified employee approaches RTÉ with allegations that National Irish Bank (NIB) took money from customer accounts for no legitimate reason, systematically overcharged on interest and fees and operated an offshore investment scheme that enabled some of its customers to evade tax. NIB obtains a temporary injunction in the High Court to prevent RTÉ broadcasting the story but loses its case in the Supreme Court
  • March 1998:Minister for Enterprise, Trade and Employment Ms Harney appoints two High Court inspectors - Mr Justice Blayney, a former Supreme Court judge, and accountant Mr Tom Grace - to investigate activities at NIB since 1988. They are given wide powers to interview witnesses and obtain bank documents.
  • June 1998:Former NIB employee Ms Beverly Flynn, a Fianna Fáil TD at the time, is named as one of the people who sold financial products that facilitated tax evasion. She announces she will sue RTÉ for libel. The High Court extends investigation to cover National Irish Bank Financial Services.
  • Mid 1998:Following an internal investigation by Arthur Anderson accountants, NIB agrees to return €166,500 plus interest to customers who had been overcharged.
  • January 1999:The Supreme Court orders NIB employees to co-operate with the investigation of High Court inspectors because of the seriousness of allegations.
  • October 2000:NIB pays about €6.35 million to Revenue Commissioners to settle its liability for failing to collect DIRT tax from customers, after a damning report from the Dáil Public Accounts Committee.
  • January 2001:NIB offers settlements to the 470 customers who bought offshore investment bonds in the Clerical Medical International policies in the Isle of Man. The customers were encouraged to buy the bonds, which were then put on deposit with NIB in Ireland. No capital gains tax was paid because the money was in the name of the offshore company.
  • April 2001:Fianna Fail TD Beverly-Cooper Flynn loses her libel case against RTÉ but appeals to the Supreme Court.
  • May 2001:NIB admits the scandal has cost it €22 million and 27 years worth of work hours to date.
  • July 2002:Interim report compiled by the inspectors is presented to the High Court.
  • August 2003:A draft copy of the final High Court inspectors' report is provided to the NIB, which is invited to respond.
  • March 2004:The bank furnishes its response.
  • April 2004:Beverly Cooper-Flynn loses her Supreme Court appeal against RTÉ and is expelled from the Fianna Fáil party.
  • July 2004:The final inspectors' report into the NIB affair is presented to the High Court and the Director of Corporate Enforcement, Paul Appleby. The report is not made available to any other parties.
  • Last Friday:After objections in the High Court from several parties, Mr Justice Peter Kelly directs that the 400-page NIB report be published in full. More than €50 million has already been paid over to the Revenue Commissioners by individuals settling tax liabilities arising from the NIB CMI scheme.

PA