AIB has begun a claim for almost €84m against a company which supplied it with new software for its retail banking operations.
The bank claims it lost this amount of money in connection with a project to put new software in place in its retail division. It says this figure does not take into account other losses which have yet to be calculated.
The proceedings by AIB against Oracle Financial Services Software were admitted to the commercial division of the High Court this morning.
The court was told in sworn documents submitted by the bank that there was an agreement in 2007 that Oracle Financial Services Software BV, (formerly known as I-flex software solutions BV), based in the Netherlands, would provide software and services to the retail banking division.
A second company, Oracle Financial Services Software Limited, based in India (I-flex software solutions Ltd) was to guarantee the performance of the first company's obligations.
The court heard that the implentation of the software product - known as Flexcube - was beset with serious technical problems and project management shortcomings between March 2007 and March 2010.
By the end of 2009, only 3,000 out of a total of 5 million customer accounts had been switched over to the new system.
In March 2010, work on implementing the Flexcube product stopped and the bank has had to continue using its existing retail banking system.
The bank says all costs and expenditure it incurred in connection with the project have been wasted. It says the company gave it repeated assurances that the problems would be rectified.
AIB says it was induced to enter into the agreement with the company by misrepresentations made by people working for the company. It is seeking damages for misrepresentation, and damages for breach of contract and negligence.