Court-appointed inspectors into the affairs of National Irish Bank (NIB) hope to conclude their three-year investigation by the end of this year, the High Court was told yesterday.
A solicitor representing inspectors Mr Justice John Blayney and Mr Tom Grace said the investigation had made "substantial progress".
The High Court appointed the two inspectors, on the application of the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, in March 1998. Under the terms of the order, the inspectors are to report and investigate on the affairs of NIB from 1988 relating to improper charging of interest and fees to the accounts of customers; improper removal of funds from accounts and all steps taken by NIB, its directors and officers, in relation to the charging of such fees and interest or the removal of any funds.
They are also investigating the books and records of NIB and whether other unlawful or improper practices existed.
The inspectors are also investigating matters related to National Irish Bank Financial Services Limited, including the sale of life policies with Clerical Medical International Insurance Limited.
The court yesterday granted an application by Mr Brian Murray, for Ms Harney, to amend the court orders appointing the inspectors to both companies to allow the inspectors investigate the effecting of policies with other CMI companies. The inspectors are inquiring into the sale of insurance policies through NIB with a total of five companies - CMI Insurance Company Limited, Clerical Medical and General Life Assurance Society, Clerical and Medical Investment Group Limited, Scottish Provident International Life Assurance Limited and Old Mutual International (Guernsey) Limited.
The amendment also provides for the inspectors to investigate the role of NIB, its officers, servants and employees in connection with the effecting of the insurance policies, the purpose behind the execution of the policies, the knowledge of the management and board of directors of NIB of the effecting of the policies and the identity of the person or persons responsible for or aware of the effecting of or purposes behind the policies.
In an affidavit, Mr Paul Durnin of the Department of Enterprise, Trade and Employment, noted an interim report from the inspectors of July 31st, 2000, had stated, while the terms of their appointment required them to investigate the effecting of policies with Clerical Medical Insurance Company Limited, their investigations had produced evidence the policies were effected with different companies in the CMI group.
In a separate affidavit related to the amendment of the inspectors' investigation of National Irish Bank Financial Services to allow them examine the sale of insurance policies through other companies in the CMI group, Mr Durnin said it was the inspectors' belief the marketing and sale of insurance policies effected with the CMI companies appeared to have been carried out by NIB rather than National Irish Bank Financial Services.
Mr Richard Nesbitt SC, for NIB, said he was neither objecting nor consenting to the application.
The solicitor for the inspectors said he was supporting the application. Mr Justice Kelly granted orders making the amendments sought.
