BY ENDA CUNNINGHAM

Bank of Ireland’s €1.1 million ‘raid’ on cash deposits belonging to Galway Airport has been referred to the Attorney General’s office to assess the legality of the move.

It has emerged that the cash which was seized by the bank – which was ‘bailed out’ by the Government – was taxpayers’ money.

And overnight, the airport moved its remaining cash reserves to a separate bank “for safety”.

Finance Minister Michael Noonan has demanded an immediate “thorough report” on the matter from Bank of Ireland, which is expected to be furnished today or tomorrow.

Transport Minister Leo Varadkar has also been briefed and has asked his Department’s airport section to investigate.

Meanwhile, the Galway City Tribune understands the Attorney General is also to be briefed on the matter.

Fine Gael TD Brian Walsh told this newspaper: “The money was funding that the Govnerment provided for redundancies and for operational losses, and working capital for this year. It was not for paying down loans. It’s unacceptable behaviour by the bank.”

Galway Chamber of Commerce President, Declan Dooley, told this newspaper: “This money was given to us by Government in OPEX (operation subvention) funding for 2011, so really, they have taken the taxpayers’ money.

“There is €500,000 left … we need €450,000 for redundancies, which has now been moved to another bank to protect it.

“Ministers Leo Varadkar and Michael Noonan have been briefed on the situation and the Attorney General will be informed to seek her opinion,” said Mr Dooley.

At the moment Galway Airport only has enough cash to stay open for just a matter of days, after the bank seized €1.1m from the deposit account last Friday.

For more on this story, see the Galway City Tribune.