BILLIONS of euro in public money was and is being unlawfully paid out by the Finance Minister to insolvent banks via promissory notes, lawyers for United Left TD Joan Collins have told the High Court.
The 2008 law under which huge sums were paid to Anglo Irish Bank and other institutions from 2010 amounted to "a blank cheque" as they placed no limits on either the amounts to be paid or on the time period involved, John Rogers SC argued.
In her witness statement for her action challenging the note payments, Ms Collins said she had "grave reservations about the manner in which the public finances of the country have been managed".
The Government denies the claims.
Yesterday was the opening day of the challenge by Ms Collins to the Government's promissory note payments made as part of the €31bn recapitalisation announced by the Minister for Finance in 2010 of the former Anglo Irish Bank (now State-owned IBRC), Irish Nationwide and the Educational Building Society.
Senior officials from the National Treasury Management Agency and the Paymaster General's office gave evidence yesterday.
The case continues today.