THE TAOISEACH HAS confirmed that a total of 91 AIB employees began legal proceedings last October, in order to obtain deferred bonuses from 2008.

The first case to be heard was that of trader John Foy, who was successful and will now receive a bonus of €160,000.

Last night, the Minister for Finance Brian Lenihan sent a letter to AIB outlining his objection to €40 million worth of bonuses due to be paid out to the bank’s employees. Lenihan said that the state would inject emergency funds into the bank only on the condition that the further bonuses would not be paid.

Today, the taoiseach was asked by Labour leader Eamon Gilmore whether the government had shut the door ‘after the bonuses had bolted’ - and whether the payments would be granted to bankers despite Lenihan’s interjection.

RTÉ reports that Gilmore cited the Buckley case of 1950, which stated that the Oireachtas could not intervene in a case which had already proceeded.

However, Lenihan had said that his letter – the contents of which he discussed with both the Attorney General and the taoiseach - and provided a solid reason for the bank not to pay the bonuses. In a statement, AIB said it was relieved at having a reason not to make the payments.

AIB’s director of corporate services, Alan Kelly, said that the row had ‘embarrassed’ the bank.