Porn row bank in cash demand

BANK of Ireland is holding discussions with Hewlett-Packard over the severance package for chief executive Michael Soden who resigned in May after it emerged he had accessed adult porn sites on his office computer.

The bank, Ireland's second-largest, is thought to blame Hewlett-Packard for the leak, and believes that the computer group should be partly responsible for the pay-off.

Soden, 57, who was half-way through a five-year contract worth about £5m, has complained that his personal privacy was breached after it became public that he had accessed websites advertising call girls in Las Vegas.

He described the incident as 'unfortunate', adding: 'It was a case of curiosity killed the cat.'

Hewlett-Packard won a seven-year contract worth almost £300m to manage Bank of Ireland's information technology in 2003, and 500 staff transferred from the bank to the computer group.

Both Bank of Ireland and Hewlett-Packard have held internal investigations into how details of Soden's personal computer access became public knowledge.

It followed an audit of Bank of Ireland's computers, which was mysteriously expanded to include that of the chief executive.

Just one year earlier, Soden had approved Bank of Ireland's internet policy, which 'discouraged' its use for non-work related purposes.

A spokesman for Bank of Ireland declined to comment on discussions with Hewlett-Packard. He added: 'Discussions with Michael Soden's representations regarding his severance package are ongoing.'