FORMER chief executive of Anglo Irish Bank, David Drumm, is set to face the music from fraud investigators about the multi-billion loan in 2008 that significantly bolstered the bank's accounts.
The 43-yea-old has agreed to return to Ireland to talk with the fraud squad. Now based in the luxurious American resort of Cape Cod, Mr Drumm has been negotiating his return home for some weeks.
Mr Drumm has launched his own legal action against the bank and is also counter-claiming that his employment was not validly terminated in early 2009 and that the bank owes him €2,620,695.
That figure is made up of notice equal to 12 months salary of €1.2 million, 12 months pension payments of €715,224, 12 months benefits of €44,471 and a deferred 2006 bonus worth €661,000.
He is also seeking damages, including for mental distress arising from breach of privacy and the bank's failure to properly protect his confidential information. Mr Drumm will also have to tell a judge when or if he will repay the €8.3m in personal loans and mortgages he took out when he was chief executive. Anglo bosses say they don't expect him to pay back €6.7m of that debt.
The Commercial Court has set October 26 as a date for the full hearing to begin and the proceedings are likely to take around two weeks. A second action by the bank against Mr Drumm and his wife Lorraine over the transfer of the former family home in Malahide into Mrs Drumm's name is to be heard immediately afterwards.
It is believed that Mr Drumm will return to Ireland to speak to interrogators while the other legal challenges are taking place. Gardai are hoping that Mr Drumm will be able to shed some light on the questionable activities and deals the bank was involved with in recent years. It is claimed that Mr Drumm will be arrested when he lands on Irish soil.
The garda fraud squad want to interview Mr Drumm about about the highly unusual transfer of €7.5bn from Irish Life and Permanent that appeared on Anglo's balance sheet on the last day of its financial year in 2008.
Former chairman Sean FitzPatrick was arrested and questioned in March and a week later Anglo's financial director, William McAteer, was also arrested and questioned by the gardai. Both men were released without charge.