THE HEARING RESUMED ON THE 6TH OF OCTOBER, 1999, AS FOLLOWS:
CHAIRMAN: Good morning. Mr. Coughlan?
MR. COUGHLAN: May it please you, sir.
At these resumed public sittings of the Tribunal a number
of areas will be examined in the context, mainly, of Terms
of Reference A, B and C. Firstly, the Tribunal will
re-visit some of the material already touched on at its
adjourned sittings in July. This will cover a number of
aspects of the Leader's Allowance Account, including
lodgements to the account of payments made to defray the
medical expenses of the late Mr. Brian Lenihan, but also
cover other aspects of the overall operation of this
Thereafter the Tribunal will pass on to examine material
accumulated in the course of its private investigatory work
with a view to arriving at some figure for the quantum of,
and to identifying to some extent the sources, of the
monies used to fund the bill paying services operated on
behalf of Mr. Haughey during the years 1985 to 1991. The
Tribunal will examine also more extensively than it has
hitherto done, the role of the late Mr. J Desmond Traynor
in the finances of Mr. Haughey, and in particular the
manner in which the Ansbacher Accounts operated in
connection with payments made to Mr. Haughey, to which
reference has already been made in connection with payments
made to Mr. Haughey.
Detailed opening statements will be made as soon as the
Tribunal comes to deal with each of these areas.
At these resumed sittings it will be necessary to refer to
the Terms of Reference for the purpose of revising and
amplifying the Tribunal's interpretation given on the 24th
of September, 1998. This is something I will refer to
later on when I come to deal with the relevant material
made available to the Tribunal.
Firstly, dealing with Irish Permanent Building Society
At the Tribunal's adjourned sittings evidence was given
that a number of cheques drawn on the account of the Irish
Permanent Building Society were given to Mr. Charles
Haughey in June of 1989. One of these cheques, dated the
7th of June, was for the sum of ?20,000 and was given to
Mr. Haughey in response to a request for contributions to
help defray the medical expenses of the late Mr. Brian
Lenihan. Evidence was given that another of these cheques,
again dated the 7th of June, this time for the sum of
£10,000, was intended as a contribution to Mr. Haughey's
personal campaign for the June elections of that year.
These cheques appear to have been endorsed by Mr. Haughey
and were then lodged to an account of Celtic Helicopters at
the Dublin Airport branch of the Bank of Ireland.
Subsequently, a single cheque for £30,000 was drawn on the
account of Celtic Helicopters at that bank. This cheque
was dated the 13th of June of 1989. It was made out to
cash. Evidence has already been given by Mr. John
Barnicle, a Director of Celtic Helicopters, (evidence with
which the Tribunal was told Mr. Ciaran Haughey agreed),
that the payment of £30,000 into the account of Celtic
Helicopters and the subsequent payment of the same amount
out of the account, could only have represented an intended
prepayment by Mr. Haughey to the helicopter company for
flying hours; that the payment out could only have
represented a cancellation of that prepayment for flying
Before any of this evidence was given at the Tribunal at
its July sittings, the material and the available
statements concerning the two Irish Permanent cheques
amounting to £30,000, and the single Celtic Helicopters
cheque in the sum of £30,000, were brought to the attention
of Mr. Haughey's solicitors and he was invited to comment.
(This, of course, is the case with all material adduced in
evidence at the Tribunal's public sittings). Perhaps I
should clarify; we have the payment out, we didn't have the
actual cheque at that stage.
Mr. Haughey subsequently made a statement to the press on
the 29th of July, 1999. By letter of the 30th of July,
1999, in response to a request from the Tribunal, Mr.
Haughey's solicitors confirmed this statement.
Mr. Haughey's statement is as follows:
"Widespread media reports that former Taoiseach, Charles
Haughey, diverted for his own use money subscribed to a
fund raised to meet the medical expenses of the late Mr.
Brian Lenihan are untrue.
These reports relate to two cheques dated the 7th of June
of 1989, payable to Charles Haughey issued by the Irish
Permanent Building Society, one for £20,000 intended as a
subscription to the Brian Lenihan Fund and the other for
£10,000 intended as a political donation. A general
election was held on the 15th of June 1989". The article
"These two cheques were inadvertently lodged to the account
of Celtic Helicopters on the 13th of June, 1989. On the
same day a cheque for £30,000 was drawn on the Celtic
Helicopters account in Bank of Ireland, Dublin Airport. An
examination of the available bank records indicate that
this cheque for £30,000 was in fact lodged to the Party
Leader's Account on the 20th of June of 1989 in Allied
Irish Bank, Baggot Street. This was the same account to
which the contributions to the Brian Lenihan Fund were
All of the above records are available to the Moriarty
Tribunal" and it is dated the 29th of July, 1999.
Now, the statement issued by Mr. Haughey is referred to,
and he correctly indicates in the statement that there were
widespread media reports, that suggestion was not made at
the Tribunal. The Tribunal's interest was in the cheque.
On receipt of confirmation of the contents of the statement
from Mr. Haughey's solicitors, the Tribunal requested Mr.
Haughey, through his solicitors, to identify the bank
records available to the Tribunal which would have
indicated what was stated in the statement; namely, that
the cheque for £30,000 had in fact been lodged to the Party
Leaders Account on the 20th of June, 1989, at Allied Irish
Bank, Baggot Street. No response has yet been received
from Mr. Haughey's solicitors. The Tribunal has however,
examined the Leader's Allowance Account at the relevant
time. It has also examined related accounts. In the light
of the statement the further information made available to
the Tribunal in the matter has once again been
The Celtic Helicopters, Bank of Ireland, Dublin Airport
Branch statement records a lodgement on the 13th of June of
£30,000. That's on the overhead projector at the moment.
Sorry, could you just - I wonder could you just leave that,
the original statement up for the moment, please? The "13"
is slightly obscure but it is in fact and it has been
confirmed, that it is in fact the 13th.
This corresponds, this lodgement corresponds to the two
cheques drawn on the account of Irish Permanent Building
Society, that is to say the £20,000 cheque and the £10,000
cheque. It would appear that a cheque was drawn on the
same date in the sum of £30,000 on the account of Celtic
Helicopters at Bank of Ireland, Dublin Airport Branch. On
the 13th -- I wonder could we just show that on the
The cheque was the £30,000 cheque payable to cash. The
reverse side of this cheque contains a bank stamp or
brand. The brand indicates that the cheque was presented
at Allied Irish Banks, 1 to 3 Baggot Street branch on the
20th of June of 1989. It doesn't come up very clearly, but
that has in fact been confirmed, what it does state.
However, the Tribunal has been unable to identify any
document or uncover any evidence suggesting that the
£30,000 was actually lodged to the Leader's Allowance
Account on that day or on any subsequent date.
There is no discrete lodgement of £30,000 to the Leader's
Allowance Account on the 20th of June, 1989, the date of
the presentation of the Celtic Helicopters cheque. There
are, however, two separate lodgements recorded as having
been credited to the account on that date. One is in the
sum of £7,288.63, and the other in the sum of £36,000.
While the second of these lodgements could of course have
incorporated a lodgement of £30,000 together with a
lodgement of a further £6,000, an examination of the
available material would seem to indicate that this was not
This is because the Tribunal has learned that another
cheque in the sum of £25,000 appears to have been lodged to
the account on the same day, the 20th of June, 1989. This
was a cheque drawn on the account of Goodman International
and signed by Mr. Larry Goodman. It was dated the 13th of
June, 1989, and drawn on an account of Allied Irish Banks,
73 Clanbrassil Street, Dundalk, County Louth. The cheque
was made payable to "Fianna Fail Party Leadership Fund".
This was a cheque drawn by Mr. Goodman in favour of Fianna
Fail at the request of the late; sorry Fianna Fail Party,
at the request of the late Mr. Peter Hanley who had
contacted Mr. Goodman to inquire whether Mr. Goodman would
be prepared to make a contribution towards the medical
expenses of the late Mr. Brian Lenihan. Mr. Goodman has
informed the Tribunal that having agreed to make a
contribution, he received a telephone call from the
Taoiseach's office requesting that the cheque be made
payable in the manner I have just described and as appears
on the cheque on the overhead projector, "Fianna Fail Party
I should emphasise that Mr. Goodman made this payment for
the purpose requested and always intended that it should be
used for that purpose. And he made it payable to the fund,
or to the account, as he was indicated or directed to so
From the markings on the face of this cheque it would
appear that the cheque was presented at AIB, Baggot Street
on the 20th of June, 1989. While it would appear,
therefore, that each of these cheques, that is the cheque
for £25,000 and the cheque for £30,000, were presented at
Baggot Street AIB on the 20th of June, the total of the
lodgements to the account on that date might be in excess
of £42,000 is less than the total of those two cheques.
The bank has provided assistance to the Tribunal in
ascertaining the manner in which each of these cheques were
presented, and I emphasise "presented to the bank" on the
29th of June, 1989, were processed. One of these cheques
has a number called a "tracer number" printed on the front
of it. If you turn it upside down, you can see, just under
the cheque. This number is applied in the course of the
bank's collection process and enables the bank to identify
the transaction to which it relates. The tracer number on
this cheque is "00816". The presence of this number
indicates that the cheque went through the normal process
of the clearing house system. The tracer number on the
transaction comprising the lodgement of £36,000 on the same
day, the 20th of June 1989, is "0812". The Bank has
informed the Tribunal that having regard to the proximity
of one another of these two tracer numbers it would appear
that the Goodman cheque for £25,000 formed part of the
Just for clarity I will go through the whole tracer number
rather than the shorthand way of the banks, that the banks
deal with it. The whole tracer number is 200689, that's
the date. The 20th of June, 1989. It then, then 480 816
00 2157. But the second series of numbers ending in "816"
is the tracer. Which identifies the transaction to which
it may be related. I should just say when I say "00816",
that was in error and I was using the shorthand code.
The Celtic Helicopters cheque for £30,000 bears no tracer
number. This appears to indicate that the cheque did not
go through the clearing-house system for collection in the
ordinary way. This appears to be consistent with the
information the Tribunal has received from the Bank that it
does not seem to have formed part of the £36,000 lodgement
to the account on that day, the 20th. Now, there is no
tracer either on the face or on the reverse side of the
Furthermore, the Tribunal has been informed that the
Goodman International cheque, in the sum of £25,000, was
debited to the account on which it was drawn on the 22nd of
June, and that this once again indicates that it went
through the normal clearing-house collection process. This
is normally a two-day process. As the Celtic Helicopters
cheque appears to have been debited to the account to which
it was drawn on the 21st of June of 1989, this would appear
to be consistent with the fact that it did not go through
the normal clearing-house process. As there does not seem
to be any other credit to the account on or after the 20th
of June, 1989, which might represent the proceeds of that
cheque, it appears that the cheque may not have been lodged
to the account at all. And I emphasise that is the
Leader's Allowance Account. The question which arises at
this stage is as to whether, in the light of the
information I have just canvassed, that the cheque for
£30,000 was cashed there and then or whether it was lodged
to some other account, or whether the proceeds of that
cheque were applied in some other way. Mr. Haughey,
through his solicitors, has been asked to comment further
on this matter, in light of the new material available, but
as yet the Tribunal has not received any response from
This evidence is material to the Tribunal's efforts to form
a picture of the manner in which the Leader's Allowance
Account was operated. The Tribunal has already indicated
in an opening statement made on the 14th of July, 1999,
that it wished to examine whether there were any other
payments by the Irish Permanent Building Society or by any
of its directors to Mr. Haughey; and whether the payments
mentioned, including the sum of £20,000 described as being
for "B Lenihan" was used for the purpose envisaged, or for
some other purpose. Although more information has now come
to hand to enable the Tribunal to form a clearer picture of
what may have happened to this £20,000 cheque the questions
raised in the course of the Tribunal's last public sittings
are still pertinent. The Tribunal will wish, therefore, to
continue to examine the account and its connection with
other accounts with which Mr. Haughey was associated; such
as the Celtic Helicopters Account and the Amiens Account.
The contents of the statement made by Mr. Charles Haughey
were drawn to the attention of Mr. John Barnicle and Mr.
Ciaran Haughey. Mr. Barnicle has indicated that he does
not wish to revise or qualify or make any alteration to the
evidence he has already given to the Tribunal that the
£30,000 lodged to Celtic Helicopters and the subsequent
payment of £30,000 by Celtic Helicopters to Charles Haughey
could only have been the making of a prepayment for
helicopter flying hours followed by a cancellation of that
prepayment. Mr. Ciaran Haughey has said that he is still
of the view that this is the only possible explanation for
the movement. This evidence already given will
nevertheless have to be re-examined in the light of the
further material which has now come to hand.
The Tribunal's continued examination of the Leader's
Allowance Account has resulted in a number of inquiries
being directed to Irish Life and Permanent concerning
payments to the Irish Permanent Building Society during the
period covered by the Tribunal's Terms of Reference. From
information made available it would appear that at least
three further payments by the Irish Permanent Building
Society to Mr. Charles Haughey merit examination in the
course of the Tribunal's public sittings. As My Friend
points out, it would be more accurate to say three further
I now wish to deal with Further Payments By Irish Permanent
The first two of these payments was made in 1986. In that
year, cheques totalling £100,000 in all drawn on the Irish
Permanent Building Society's bank account appear to have
been lodged to the Leader's Allowance. The first of these
payments was made by way of a cheque dated the 19th of
March, 1986. This cheque, payable to "Fianna Fail", was
for the sum of £50,000 and was signed by Dr. Edmund Farrell
and Mr. JG Treacey, both Director's of the then Irish
Permanent Building Society. The cheque was endorsed on the
reverse side as follows:
"Fianna Fail, Charles Haughey".
The cheque stub describes the cheque as being "Fianna Fail
sub £50,000". This cheque, from the brand stamped on the
face of it, appears to have been presented at Allied Irish
Bank, Lower Baggot Street, on the 7th of April of 1986.
The bank statement shows that on that day a lodgement of
£50,000 was credited to the account and this cheque
payment, therefore, appears to correspond with the £50,000
lodgement. On the 7th of April there was a lodgement to
the account which is, of course, in the name of Haughey
Ahern McSharry, I keep referring to it as the Leader's
Allowance Account. It was for £50,000.
The second payment in that year was made by way of a cheque
payable to Fianna Fail in the sum of £50,000 and is dated
the 17th of October of 1986. The cheque was signed by Dr.
Edmund A Farrell and Mr. JG Treacey. From the stamp it
would appear that the cheque was presented at Allied Irish
Banks, Baggot Street on the 22nd of October, 1986, and the
Leader's Allowance bank statement for that month indicates
that a lodgement of that amount was credited to the account
on that day and it would appear, once again, that this
lodgement corresponds with the £50,000 from the Irish
Permanent Building Society. And that shows a lodgement on
the 22nd of October, 1986.
The Irish Permanent Building Society cheque was endorsed on
the reverse side as follows:
"For Fianna Fail, CJ Haughey".
The notation on the cheque stub is as follows:
"Fianna Fail sub, 17th of October 1986, £50,000".
Apart from the cheque stub and the company's cheque
analysis book, there would appear to be no other records
retained by the Irish Permanent Building Society of either
of these payments.
The payments were brought to the attention of Dr. Farrell
and Mr. Treacey, and the Society or Irish Life and
Permanent as they are now. Dr. Farrell confirms his
signature on the cheques. He has also informed the
Tribunal that any information he has concerning the cheques
is based on his memory and documents furnished to him by
the Tribunal. And he has informed the Tribunal once again
that his response is based on memory and on these
documents, in the absence of the Irish Permanent Building
Society file on political donations which he referred to
previously in his evidence. He has, however, stated that
he did not recall receiving a direct approach for either of
these cheques as political donations for Fianna Fail, but
believes that as was usual at the time, both cheques were
paid as a result of an application from Fianna Fail for a
political donation or political donations. Mr. Treacey, in
his statement to the Tribunal, confirms his signature on
the cheques but has indicated that he is not aware of the
identity of the person from whom the request for the
cheques came and has further stated that his only function
was to countersign the cheques after Dr. Edmund Farrell had
first signed them.
The Tribunal sought the assistance of the Fianna Fail Party
concerning these cheque payments and has been informed by
Party Head Office that the Fianna Fail Party did not issue
any appeal for funds at the time of any of these payments;
that it has no information in relation to the cheques; that
there is no record of the Fianna Fail Head Office having
received either of the cheques; and that Fianna Fail did
not issue a receipt in respect of either of these cheques.
It may not be surprising that there was no appeal for funds
from Fianna Fail in that there was no election in that
year. These cheque payments, therefore, and the purposes
to which funds in the Leader's Allowance Account in that
year were applied are relevant to the Tribunal's terms of
reference, Term of Reference B, and it is a question as to
whether these funds were applied for the purposes for
which, to judge from the cheque stubs they appear to have
been given, or whether they were applied for some other
The third payment, or cheque, from Irish Permanent Building
Society was one for £40,000, dated the 16th of August of
1991, and again made payable to Fianna Fail. The cheque is
signed by Dr. Edmund Farrell and Mr. Roy Douglas. The
cheque was endorsed on the reverse side as follows:
The cheque stub indicates that it was a "Fianna Fail sub"
in the sum of £40,000. Dr. Edmund Farrell has informed the
Tribunal that he has no specific recollection of the cheque
but confirms his signature on it, together with what he
believes to be the signature of Mr. Douglas. He cannot
recall receiving any direct approach in relation to the
cheque but believes that it was made payable to Fianna Fail
as a result of a letter of application from that party. He
draws the attention of the Tribunal to the fact that in the
long form report prepared in advance of the societies
conversion to a PLC, the payment was described as having
been made as "a contribution to local election funds". Dr.
Farrell believes that it was correctly so described and the
cheques analysis book of the Irish Permanent Building
Society does record the payment, along with the payments
of, along with payments to two other political parties for
that year, and the two other political parties were the
Progressive Democrats and the Labour Party, and the
payments were made around the same time and that there were
Local Government Elections at that time.
Mr. Sean Fleming, TD, on behalf of the Fianna Fail Party
has informed the Tribunal that while there was an appeal by
the Fianna Fail Party for funds in connection with the
Local Government Elections in June of that year, there is
no record of the Fianna Fail Party having received this
cheque for £40,000. Nor did the party issue any receipt in
respect of such a cheque to the Irish Permanent Building
Society, or to anybody else.
The cheque in question, that is the £40,000 cheque, is
stamped as having been presented at Allied Irish Bank,
Baggot Street branch on the 2nd of September, 1991. The
bank statement of the Leader's Allowance Account for the
relevant month records a lodgement on that date of
£50,263.25. While this is in excess of the amount of the
cheque, an examination of the statement for the relevant
year shows that in or around that time regular installments
of the Leader's Allowance payable out of central funds were
credited to the account at regular intervals in uniform
amounts of £10,263.25 and it would appear therefore that
this lodgement of £50,263.25 comprised the £40,000 cheque
payment together with a lodgement of an installment of the
Leader's Allowance payable out of central funds.
From the Tribunal's point of view the same questions arise
in relation to this £40,000 payment to the account as has
already been canvassed in relation to the two £50,000
payments which I have already mentioned.
I now turn to Debits to the Leader's Allowance Account.
I now propose to pass on to a number of debits from the
Leader's Allowance Account which have come to the attention
of the Tribunal and which merit further examination in the
context of the Tribunal's Terms of Reference, in particular
Terms of Reference B and C. Attention has already been
drawn to the debits to the Leader's Allowance Account which
appear to correspond to credits to the account under the
control of, or with which Mr. Haughey was associated. I
have mentioned this in the context of evidence already
given of the lodgement of a cheque for £25,000 drawn on the
Leader's Allowance Account to an account in Guinness &
Mahon, in the name of Amiens Securities Limited, controlled
by the late J Desmond Traynor. That is the cheque of which
evidence was given on the previous sittings of the
Tribunal. And in which, Mr. Ahern, the Taoiseach, gave
evidence of signing in blank form. Evidence has already
been given concerning debits to the Leader's Allowance
Account which correspond to or match the credits to the
bill paying service operated by Deloitte and Touche on
behalf of Mr. Haughey. Further reference will be made to
these transactions at a later stage in the Tribunal's
resumed sittings. At this point I intend to refer to the
debits to the account in connection with payments made to
discharge the medical expenses of the late Mr. Brian
Lenihan. This will be dealt with extensively in the course
of the evidence in order to establish how much of the
monies in the account attributable to sources other than
the installments of the Leader's Allowance payable out of
central funds were used to discharge these expenses.
This exercise is necessary, in view of the fact that there
is very little apart from the bank statements, by way of
records of the Leader's Allowance Account available to the
Tribunal. (And even where bank statements were available
they were only available in limited form). Evidence has
already been given by Miss Eileen Foy concerning the
records, which although kept, and as far as the Tribunal
and anybody associated with the account can judge, kept
meticulously are not available. Nor does it appear that
there are any accounts available of the amount of the
monies contributed to defray the medical expenses of the
late Mr. Brian Lenihan.
In endeavoring to ascertain the amount of monies
contributed for this purpose the Tribunal has borne in mind
that the discrepancy between the ordinary installments of
the Leader's Allowance for the year 1989, and the total
amount of the lodgements to the Leader's Allowance is in or
Dealing now with the Debits of the Leader's Allowance
Account in Connection with Mr. Lenihan's, the Late Mr.
Lenihan's Medical Expenses.
The Tribunal has been informed by Mr. Padraic MacKernan,
Secretary General of the Department of Foreign Affairs,
that in 1989 arrangements were made between the Department
of Foreign Affairs, (of which the late Mr. Lenihan was then
Minister), and the Taoiseach's office, for the transmission
and payment of invoices from the Mayo Clinic through the
Irish Embassy in Washington. Invoices were issued by the
Mayo Clinic addressed to Mr. MacKernan, who was then the
Irish Ambassador to Washington, and were forwarded through
the Department of Foreign Affairs to the Taoiseach's
Office. US dollar cheques were provided by the Taoiseach's
Office and were transmitted back through the Department of
Foreign Affairs and the Embassy in Washington to the Mayo
Clinic. The function of the Department appears to have
been of facilitator in the reception and transmission of
invoices and payments.
In total, it appears that a sum of $82,376.70 was paid
through the Department of Foreign Affairs to the Mayo
Clinic in respect of the late Mr. Lenihan's treatment, and
that these payments were made between June 1989 and June
1990. The payments were made by US dollar international
cheques drawn on Allied Irish Banks, One Lower Baggot
Street, Dublin 2. The details of the payments were as
On the 22nd of June, 1989: US dollars $7,840.80. It
appears from an examination of the statement of the account
number, 30208062 being the account held in the name of Mr.
Haughey, Mr. Ahern and Mr. McSharry at the Lower Baggot
Street branch of AIB, that there was a debit to the account
on the 22nd of June, 1989, of £5,758.95 which appears to
match the US dollar cheque.
On the 20th of July, 1989: $65,923.29, a draft for that
amount was issued or claimed from Allied Irish Bank at
Baggot Street, Dublin 2. And there appears to be a debit to
the AIB account, that is the Leader's Allowance Account, on
the same date of £47,090.56 and this also appears to match
the US dollar draft or cheque.
On the 21st of September of 1989 there was a US dollar
draft drawn or issued by Allied Irish Banks, Lower Baggot
Street, Dublin 2 for the sum of $1,409.60. There also
appears to be a debit to the account on this date of
£1,029.91 which appears to match the amount of the US
On the 7th of December 1989, there is another US dollar
draft made payable to the Mayo Clinic and it is for
$324.01. There does not appear to be any debit to the
Leader's Allowance Account on this date which matches the
amount of this cheque, or this draft.
And on the 7th of March 1990. There is another US dollar
draft purchased at Allied Irish Banks, Lower Baggot Street,
and it is in the sum of $6,810 and there is a debit to the
Leader's Allowance Account on the same date of £5,727.23
which appears to match the amount for the purpose of that
On the 29th of June, 1990, there is a US dollar draft
purchased at that branch and it is in the sum of $79 and
there does not appear to be any debit to the Leader's
Allowance Account on this date which matches the amount
which was used to purchase this draft.
From an examination of the accounts it would appear that
the total withdrawals to the AIB Leader's Allowance Account
which appears to have funded these US dollar drafts payable
to the Mayo Clinic amounted to £59,606,65.
It appears that two further US dollar payments were made
through the Department of Foreign Affairs in respect of
travelling and accommodation costs incurred when Mr.
Lenihan returned to the Mayo Clinic for review in early
January 1990 and the details of these payments are as
On the 7th of March, 1990: $1,885.60.
And again on the 7th of March, 1990: $235.75. There are
no debits to the Leader's Allowance Account which appear to
match the dates and amounts used to purchase these
The Tribunal has further been informed by Mr. Padraic
MacKernan that three Irish pound payments were made to the
Department between July 1989 and December 1989 as refunds
of expenses incurred in connection with the late Mr.
Lenihan's treatment. The details of these three payments
are as follows:
(1) £2,489.90 which was lodged to the Department account on
the 25th of July, 1989. The Department has not been able
to obtain a copy of the cheque provided from the Central
Bank microfiche records and there does not appear to be any
debit to the AIB Leader's Allowance Account corresponding
to the date or the amount of this payment.
(2) £4,933.59. Which was lodged to the Department Account
on the 27th of September, 1989. The Department has
produced to the Tribunal from Central Bank microfiche
records, a copy of this cheque, which was in the sum of
£4,933.59 payable to the Department of Foreign Affairs and
drawn on Allied Irish Bank, One Lower Baggot Street, Dublin
2, account of Haughey, Ahern and McSharry. This cheque is
shown as a debit on the account statement on the 29th of
The third payment to the Department is in the sum of
£5,073.53 which was lodged to the Department account on the
18th of December, 1989. The Department has also produced a
copy of this cheque which was dated the 14th of September,
1989, in the sum of £5,073.53 payable to the Department of
Finance, which was also drawn on Allied Irish Bank, One
Lower Baggot Street, account of Haughey, Ahern and
McSharry. This cheque is shown as debited to the account
on the 28th of December, 1989.
The Tribunal has been informed that when the late Mr.
Lenihan returned to the Mayo Clinic in January of 1990, his
travelling expenses, amounting to £12,914.50 were paid by
the Department of Defence. The late Mr. Lenihan was then
Minister for Defence. This sum was reimbursed to the
Department of Defence by the Taoiseach's office in February
1991 and is shown as a credit in the Department of
Defence's Receivable Order Book on the 15th of February
1991. This payment appears to match a debit to the AIB
Leader's Allowance Account on the 13th of February of
1991. This debit represents the proceeds of a cheque dated
the 12th of February, 1991, payable to Allied Irish Banks
which was referred to in the evidence of Miss Eileen Foy
given in the course of the Tribunal's public sittings last
July. It appears from information provided by Allied Irish
Bank that the proceeds of this cheque may have been applied
to fund the bank draft in that sum.
It appears therefore, that the total funds withdrawn from
the AIB Leader's Allowance Account and applied to defray
expenses incurred in connection by the late Mr. Lenihan's
treatment, were £82,528.27 made up of the following
1. £59,606.65 to fund the US dollar international cheque
payable to the Mayo Clinic.
2. £4,933.59 paid to the Department of Foreign Affairs on
the 27th of September, 1989.
3. £5,073.53 paid to the Department of Foreign Affairs on
the 18th of December, 1989.
4. £12,914.50 paid to the Department of Defence on the
15th of February, 1991.
As mentioned already, the discrepancy between the ordinary
installments of the Leader's Allowance paid out of central
funds and the lodgements to the account in 1989 was in or
around £220,000. As the total sum which appears to have
been debited to the account for the benefit of the late Mr.
Lenihan was £82,528.27 of which £12,914.50 was not debited
until February, 1991. The Tribunal will wish to inquire
into the extent of the monies raised and lodged to the
account which were intended to benefit the late Mr.
Lenihan, and if these were in excess of the sum actually
expended, the purpose or purposes for which the additional
funds, if any, were applied?
In this regard, it will be recalled that the Tribunal has
already heard evidence in relation to a cheque drawn on the
account for £25,000 dated the 16th of June, 1989, which
have appeared, which appears to have been lodged to the
Amiens Securities Limited account in Guinness & Mahon, an
account under the control of the late Mr. J Desmond
Traynor, which I have already mentioned.
Apart from the US dollar payments to the Mayo Clinic
referred to above, and which were made by cheques provided
by the Taoiseach's office to the Department of Foreign
Affairs, the Tribunal has also been informed by the
Department of Foreign Affairs, that a further invoice was
raised by the Mayo Clinic, but that the Department's
records do not include any reference to the payment of this
The invoice was dated the 6th of July, 1989, and was in the
sum of $81,602.74. The Tribunal has been informed by the
Voluntary Health Insurance Board that this invoice was
discharged by the VHI on foot of a special claims appeal on
behalf of the late Mr. Lenihan. It appears from the bank
records available to the Board that the payment to the Mayo
Clinic by VHI was made by bank draft and it appears that
the funds to meet this payment, which were £57,247.49 were
debited to the VHI account on the 1st of August, 1989.
The Board has been unable to locate the file relating to
the late Mr. Lenihan's special claims appeal. The Board
has identified from its microfiche record copies of the
claims files for Mr. Lenihan for the years 1989 and 1990,
but these do not include documents relating to the special
grant paid by the VHI in respect of Mr. Lenihan's treatment
in the Mayo Clinic. This suggests that the claim for a
special grant was properly made in the instance to the
general manager of the Board rather than through the claims
The Tribunal has been informed that special claims appeals
are cases which involve an element of ex gratia payment and
therefore must receive the approval of the board of the
VHI. In the case of the late Mr. Lenihan, the ex gratia
element was caused by the fact that the operation took
place outside Ireland and the appeal was to meet the costs
of his treatment in the Mayo Clinic. The VHI has produced
copies of the minutes of the meeting of the board of the
18th of May of 1989. It appears from the minutes that the
directors present were Mr. D Cashell, Chairman. Dr. B
Alton, Mr. HB Dennis, Mr. N Fox, and Mr. Brendan Hayes.
Mr. TR Ryan and Mr. AF Mitchell were also in attendance.
The minutes were signed by the Chairman on the 28th of July
Paragraph 3.4 of the minutes record as follows: "The
following special claims appeals were agreed: Mr. B Lenihan
(and membership number given), taking into account the
circumstances of the case and previous grants to other
subscribers in similar circumstances, it was agreed in
principle that a significant contribution should be made".
There does not appear to be any reference in the minutes to
the quantum of the payment approved by the board.
Mr. Noel Fox, who has provided a statement, has informed
the Tribunal that he has a vague recollection that a figure
of £50,000 was mentioned at a board meeting and that in his
experience special claims would not be approved by the
board without discussing the quantum.
Mr. Brian Denis who has provided a memorandum of evidence
has informed the Tribunal that he is certain that the
quantum of the payment was discussed at the board but he
can not recall the amount or amounts discussed.
Mr. Des Cashell who has also provided a memorandum of
evidence, has informed the Tribunal that the board had a
short discussion of the appeal and agreed that as the
treatment of the late Mr. Lenihan was not available in
Ireland, the cost of the actual operation at the Mayo
Clinic would be borne, which the board - and he believes
that the board were advised that this would be in the
region of £50,000.
I now wish to deal with some Additional Material Debits.
I turn to deal with these debits to the account which
appear to be material to the Tribunal's inquiries. These
debits are of two kinds. Firstly, there are two debits in
connection with the purchase of international cheques;
sorry, I beg your pardon, there are two other debits in
connection with the purpose of international cheques and
secondly, two debits in connection with payments made to a
member of the Fianna Fail Parliamentary Party in connection
with certain financial difficulties in which that party
member found himself.
The first two debits are the result of two cheques drawn in
1991. The first of these cheques is dated the fourth of
February of 1991 drawn on the Leader's Allowance Account in
the sum of £8,332.32. This cheque was payable to AIB.
Evidence has already been given at the Tribunal's public
sittings by Miss Eileen Foy in relation to this cheque.
Although Miss Foy was unable to recall the precise purpose
for which this cheque was drawn, she did nevertheless
speculate, as it now transpires correctly, that this
cheque, being payable to Allied Irish bank was probably
drawn in order to purchase a bank draft.
In fact, it would appear that the cheque drawn on the
fourth of February of 1991, was used to purchase an
international cheque, (which is a form of bank draft),
dated the same day and issued by the same branch, drawn on
Credit Commercial of France, in Paris, in favour of
Charvet, Paris, in the sum of, French Francs 61,605. It
appears that Charvet is a firm of Paris shirt makers.
A second cheque dated the 18th of September of 1991 was
drawn on the account in the sum of £7,500 payable to cash.
It would appear that this was used to purchase a second
international cheque, this time dated the 18th of December
of 1991, drawn once again on Credit Commercial De France,
Paris, and once again in favour of Charvet. This time in
the sum of French Francs 63,000.
The Tribunal has been unable to obtain any explanation as
to why the Leader's Allowance Account would have been used,
in the normal way to purchase items amounting to in or
about £12,000 in value, from a firm such as this.
The second type of payment I mentioned above relates to two
debits to the account in December, 1989 and in March, 1990,
respectively. These debits appear to have been connected
with financial difficulties in which Mr. John Ellis TD,
found himself at that time. Mr. Ellis TD for Sligo Leitrim
has informed the Tribunal that in 1989 he was in
considerable financial difficulty as a result of a failed
business venture. He had incurred substantial liabilities
with a number of Marts including Manorhamilton Mart.
Bankruptcy proceedings were threatened by Manorhamilton
Mart. Mr. Ellis has stated to the Tribunal that in
December of 1989 he was approached by Mr. Haughey who had
become aware of the threatened bankruptcy proceedings and
was informed by Mr. Haughey that the Fianna Fail Party
would try to rescue him from bankruptcy and that this was
important having regard to the size of the government
majority in the Dail at that time.
Sorry, I should just say there, when I said that Mr.
Haughey had informed Mr. Ellis that they had tried to
rescue him - I should have said that "they would try to
The Tribunal has been informed that sometime around the
13th of December of 1989, Mr. Haughey invited Mr. Ellis to
his office. That he paid Mr. Ellis a sum of £12,400. That
this payment was in cash. That the payment was brought by
Mr. Ellis to his solicitors and that his solicitors
forwarded the £12,000, either by his own cheque or by draft
to the solicitors acting on behalf of Manorhamilton mart.
Unfortunately, this payment did not bring Mr. Ellis'
difficulties to an end and by March of 1990 he was again
threatened with bankruptcy by another creditor, Swinford
Mart. Mr. Haughey once again volunteered to him that the
party would provide him with assistance and sometime around
the 22nd of March, 1990, he collected from Mr. Haughey, in
Mr. Haughey's own office, cash in the sum of £13,600 and he
brought this to his solicitor and he understands that his
solicitor then forwarded this cheque to the solicitors.
Sorry, I beg your pardon; that he brought the money to his
solicitors and that his solicitors then wrote their own
cheque to the solicitors acting on behalf of Swinford
Mr. Ellis has stated to the Tribunal that at all times it
was made clear to him by Mr. Haughey that both payments
were made from the Fianna Fail funds and for the benefit of
the Fianna Fail Party.
It would appear that each of these payments is reflected by
a debit to the Leader's Allowance Account. It seems that
on the 12th of December, 1989, a sum of £12,500 was debited
to the account. This debit, it is on the overhead
projector and the £12,500, it may not be clear, the one may
not be clear but it is there. This debit appears to have
been by way of cheque number 500017 and it would appear
that the cheque may have been drawn very close to, if not
on that day, when it was presented. While the sum of
£12,500 debited to the account on that day does not
coincide precisely with the sum of £12,400 paid to Mr.
Ellis, nevertheless having regard to the date of the
payment to Mr. Ellis, the two transactions seem to be
related, notwithstanding the slight discrepancy in the
There was another debit to the account on the 22nd of March
of 1990. This debit is in the amount of £13,600 which
coincides exactly with the amount of the cash payment made
to Mr. Ellis. From the Leader's Allowance bank statement
it would appear that cheque number 500050 was drawn on
this, for this amount. While this cannot be ascertained
with absolute certainty, it would appear that the cheque
may have been drawn for each of these amounts and that each
of these cheques were cashed on the day they were drawn and
that in each case, were for the purpose of providing cash
funds for Mr. Ellis.
Mr. Ellis has made it clear to the Tribunal that he was not
aware at the time of any possible connection between the
funds paid to him and the Leader's Allowance Account. Nor
was he aware that at that time the Leader's Allowance
Account included funds paid out of the Exchequer to the
leaders, to that account, together with other funds,
including sums of money contributed to defray the medical
expenses of the late Mr. Brian Lenihan.
These payments, that is the payments to Mr. Ellis and those
to Charvet warrant a re-examination of all cheque payments
out of the Leader's Allowance Account. Each of the
payments warrants a re-examination of the procedures
adopted during Mr. Haughey's tenure as Taoiseach and leader
of the opposition where the operation of the Leader's
Allowance Account is concerned. Specifically, the Tribunal
will need to examine how the signature of a co-signitory
was obtained on any one of the four cheques mentioned above
without the purpose for which the cheque was being drawn
being brought to his attention; and in the case of the
Charvet cheques, without the invoices in respect of which
the cheques were written being drawn to his attention.
This will also necessarily involve a re-examination of all
of the round sum debits to the Leader's Allowance Account.
In view of the fact that there is a very, there is very
limited documentation available in relation to the
operation of this account, one of the questions which now
arises is whether the other round sum debits to the account
are represented by payments to cash, and whether in fact
those payments resulted in cash withdrawals from the
account at Allied Irish Banks.
A further feature of the payments to Mr. John Ellis TD, is
that they would appear to come within Terms of Reference C
of the Terms of Reference, if Mr. Ellis were to be regarded
as a person who holds or has held public office. I should
say the Term of Reference C, of course, deals with payments
out of accounts referred to in Term of Reference B, to the
holders of public office.
And this brings me to the Tribunal's view that it may be
necessary to expand or revise its interpretation of the
Terms of Reference.
At the hearings on the 24th of September, 1998 the Tribunal
gave an indication of its then current interpretation of
the Terms of Reference. The Tribunal indicated that that
interpretation of its Terms of Reference might not be
final. In the light of a much greater volume of material
which has now come to hand and in view of the Tribunal's
continuing obligation to keep the interpretation of its
Terms of Reference under review. It seems appropriate that
the expression "public office" in Terms of Reference C,
should be considered in more detail.
The Tribunal has already indicated that the expression
"public office" in relation to Mr. Charles Haughey in Term
of Reference A applies to the ministerial offices held by
him. In the context of Term of Reference E; the Tribunal
has indicated that the reference to the time when Mr. Lowry
held public office refers to the time when he held
ministerial office. Term of reference C, has arisen so far
only in the context of a payment made to Dr. John O'Connell
who is a person who held ministerial office. A question
which arises in the context of payments to Mr. Ellis is
whether they come within Term of Reference C, as a payment
made to a person who holds or has held public office as a
member of Dail Eireann, but who has not held ministerial
At this point I think it sufficient merely to indicate,
subject to any submissions made by any person properly
entitled to make them, that the expression "public office"
in Term of Reference C should embrace a payment made to a
person who has held public office as a TD. I am aware,
sir, that you do not intend to give any definitive
indication of your view until sometime early next week so
that any person entitled to make a submission should have
an opportunity of doing so.
CHAIRMAN: Thank you. Thank you Mr. Coughlan for those
detailed opening remarks and I note in particular the last
matter that you alluded to in relation to some, at this
juncture, potentially limited degree of further
construction of the Terms of Reference in relation to the
phrase "public office".
I note Mr. Clarke, on behalf of the Public Interest is in
attendance and it seems to me that perhaps any person who
may be interested in being heard in relation to this aspect
might please communicate either with the Tribunal legal
team or with Miss O'Connell, the Registrar, so that we may
be in a position to deal with and finalise this limited
further aspect of construction, certainly before the
conclusion of next weeks sittings. Will that be feasible
perhaps, Mr. Clarke?
MR. CLARKE: Yes, sir. I think I would like to take
instructions on that particular issue and it is likely that
I would wish to address you on it. Perhaps I might discuss
with your legal team some appropriate date next week?
MR. CLARKE: When submissions are to be heard.