Overcharging scandal: No disciplinary action for AIB staff
No disciplinary action is to be taken against officials in Allied Irish Bank over the foreign exchange overcharging scandal, it was revealed today.
But the financial giant confirmed the controversy had run up a bill of €65.8m including repayments to customers, interest and a €20.6m donation to charity.
This compares to profits of €1.7bn for 2005.
Management said they considered taking action over the affair but decided, mainly due to the passage of time, that no member of staff could be targeted.
“The bank is satisfied that the investigations have now been completed,” said Eugene Sheehy, AIB chief executive. “However, the failings which they identified are deeply regrettable and I apologise for them on my own behalf and on behalf of the board.
“The board and management of AIB are committed to complying with the principles and standards set down by the Financial Regulator.
“I can assure our customers that we have learned valuable lessons and have taken comprehensive action to prevent any of these issues arising again.
“We had put in place, and are continuing to put in place, new systems and procedures to ensure that our customers receive the levels of transparency and service which they are fully entitled to expect at all times.”
The foreign exchange scandal was the biggest of several crises to hit the financial services sector in Ireland. Customers were charged wrongly for years for changing currency with AIB.
AIB was initially forced to pay back a total of €34.2m to customers who were overcharged on currency transactions and other matters.
The bank revealed today it had repaid customers a further €11m. It also said that were customers could not be identified a donation of €20.6m would be made to charity.
The bank is hoping the money will go to areas educational disadvantage and research into how Ireland’s growing immigrant population can be integrated into society.
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