Rabbitte unhappy with claims state money was used to fund AIB chief exec pension
A senior cabinet minister has said he is not at all happy with claims that state money was used to fund the pension of a former chief executive of AIB.
Pat Rabbitte says he was unaware that taxpayers' money would be used to fund the pensions of those who made a mess of the banking system in the first place.
It follows reports that some of the money paid by taxpayers to bailout AIB was used to fund the pension of former CEO Eugene Sheehy, worth over €500,000.
But Minister Rabbitte also says there would be serious implications to any sovereign government breaching contracts entered into by its predecessor.
Minister for Finance Michael Noonan has already said he has no legal power to reduce the pensions of senior bankers involved in the bank bailout.
Speaking this morning, Rabbitte expressed his dissatisfaction with the situation: "I'm not happy with it at all. I greatly regret that the government of the day didn't tie that up legally before effectively transferring taxpayers' money for the purposes we thought of recapitalising the banks.
"I certainly was unaware any of that money would pay the pensions of the people who made a mess of the banking system in the first place."
