Oireachtas Joint and Select Committees

Thursday, 23 April 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour) | Oireachtas source

Okay. There was an internal audit in AIB in April 2006 highlighting an issue relating to outstanding solicitor undertakings in the Republic of Ireland division, your division. It's the reference page, it's actually up on the screen there in front of you but just for noting purposes, it's AIB B4, Vol. 1, page 20.

And in that audit it would demonstrate that outstanding solicitors' undertakings was No. 1 in the top three outstanding internal audit issues, as late as October 2008. This was a continuous issue that was running through AIB. Was the board aware of this level of difficulty that was there in solicitors' undertakings and them being accepted, relating to property being taken as security, and the lengthy delay in perfecting security in many cases, and was there even situations that when the undertaking wasn't even complete, that the loan was being issued anyway?

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