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Aer Lingus chairman resigns in AIB scandal

Tom Mulcahy - Resigns as Aer Lingus chairman
Tom Mulcahy - Resigns as Aer Lingus chairman

The Minister for Transport, Seamus Brennan, has accepted the resignation of the chairman of Aer Lingus, Tom Mulcahy. 

Mr Mulcahy, who is a former senior executive with AIB, has resigned from his position with the airline as a result of the latest scandal at the bank.

He is understood to be one of five executives who had what were described by AIB as 'tax issues', due to arrangements unconnected to the controversial scheme.

Meanwhile, former AIB executives involved in a controversial offshore investment scheme have been named.

They include a former AIB Chief Executive, Gerry Scanlan, the outgoing chairman of Irish Life and Permanent, Roy Douglas, David Cronin, former treasurer of Allfirst in the US and the late Paddy Dowling, a former AIB deputy chief executive.

Another Faldor beneficiary was Diarmuid Moore, formerly the director of group strategic development at AIB in the 1980s.

The revelations came as the bank is being investigated for overcharging certain foreign exchange customers and for assigning payment protection policies to some mortgage holders without their knowledge.