The High Court has disqualified former National Irish Bank chief executive Jim Lacey for nine years from involvement in the management of any company on grounds of unfitness, the Irish Times reported.
Mr Lacey is also facing a substantial legal costs bill following the lengthy hearing of proceedings brought by the Director of Corporate Enforcement seeking disqualification under Section 160 of the Companies Act.
Mr Justice Roderick Murphy, who last April found Mr Lacey's conduct of various aspects of the bank's affairs was "grossly negligent", today ruled the appropriate period of disqualification was nine years.
During Mr Lacey's time at the bank, matters were brought to his attention following internal audits that should, but did not, result in changes being implemented, the judge said.
After making his order, the judge was told Mr Lacey intends to appeal to the Supreme Court.
Last April, in a lengthy judgment, Mr Justice Murphy found various breaches of duties by Mr Lacey as CEO and director of NIB between 1988 and 1994 were "grossly negligent" and ruled his conduct fell below the required standard and "constituted a fundamental failure of governance". Given those findings, he granted the disqualification order.
The director had argued the order was justified on foot of the report of the inspectors who investigated the affairs of NIB and NIB Financial Services between 1988 and 1998. The inspectors concluded the bank was involved in widespread tax evasion and imposed unwarranted fees and interest charges on customers.
The director claimed there was "a catastrophic failure of governance" during Mr Lacey's tenure as chief executive and Mr Lacey must bear ultimate responsibility for "very serious wrongdoing" by the bank.
Mr Lacey, Pine Haven, Grove House Gardens, Blackrock, Co Dublin, had strongly opposed any disqualification order arguing it was unwarranted and would have major reputational consequences for him.
Since leaving NIB, he was appointed to various State boards, including the Dublin Docklands Development Authority, worked with the World Bank and was a director of two International Financial Service Centre companies.
Based on the findings of the report of the inspectors and the court's own findings on evidence in the disqualification hearing, Mr Justice Murphy ruled Mr Lacey was guilty of various breaches of duty and his conduct made him unfit to be concerned in the management of a company.
The judge agreed with the inspectors, as chief executive, Mr Lacey had penultimate responsibility to ensure Deposit Interest Retention Tax (DIRT) was deducted and paid from all accounts subject to DIRT and had failed to discharge that responsibility. Read more.
