£20,000 cheque `intended for Lenihan' went into Celtic Helicopters account

A £20,000 cheque which a former building society director believes was intended to help fund a liver transplant operation for the late Tanaiste, Mr Brian Lenihan, ended up in the bank account of Celtic Helicopters.

Mr Enda Hogan, one of the signatories of a £20,000 cheque from the Irish Permanent Building Society made payable to the former Taoiseach, Mr Charles Haughey, told the tribunal that a reference to "B Lenihan" on the stub of the 1989 cheque led him to believe it was probably intended as a contribution to Mr Lenihan's medical expenses.

Counsel for the tribunal, Mr John Coughlan SC, said that Mr Hogan had a recollection that he was told by the other signatory, the former Irish Permanent managing director, Dr Edmund Farrell, "that Mr Brian Lenihan was going to undergo a liver transplant operation and Dr Farrell thought that the Irish Permanent should make a contribution towards his expenses."

However, it appears that Mr Hogan was not aware in June 1989, when he countersigned the cheque, that it was intended for Mr Lenihan. Mr Coughlan said Mr Hogan's response was based on the fact that the relevant cheque stub contains a reference to "B Lenihan".

A second cheque for £10,000, drawn on the Irish Permanent's Bank of Ireland account and also dated June 7th, was made payable to Mr Haughey. Mr Hogan does not have any recollection of countersigning this cheque either, but he assumes it was a political donation.

This and the £20,000 cheque which Mr Hogan believes was intended to assist with Mr Lenihan's medical expenses appear to have been lodged to the Celtic Helicopters account at Dublin Airport branch of the Bank of Ireland on June 7th. Two weeks later £30,000 was withdrawn from the account.

Mr Coughlan said Mr Haughey had been asked to comment on the cheques and the manner in which they were lodged, but had not done so to date.

The Irish Permanent made several other payments to political parties, which appear to have been connected with the general election then pending. Fianna Fail was paid £65,000, Fine Gael £25,000, and Labour £10,000.

The cheque stubs describe the payments to Fianna Fail and Fine Gael as "subs", while the payment to the Labour Party was described as a "contribution". The payment of £10,000 to Mr Haughey is described on the cheque stub as "sub".

Shortly after he joined the society in 1983, Mr Hogan had recommended that if any donations were to be made to Fianna Fail, contributions should also be made to Fine Gael and Labour. The decision as to the amount each party would receive was made solely by Dr Farrell and all requests for such contributions were handled by him.

He understands there is no reference in the board minutes to any of these payments and he told the tribunal it would have been normal at the time for Dr Farrell to make decisions on these matters without reference to the board.

In a document which Mr Coughlan said "appears to be in the nature of a cheque journal or an analysis book", the four payments are described as "political subs."

"No distinction is made in the entries on the journal as between the political parties, nor is any reference made to Mr Charles Haughey himself," he said.

The tribunal heard that Dr Farrell was endeavouring to obtain further documentation to assist the tribunal.

Mr Coughlan said the tribunal would also "wish to examine whether there were any other payments by the building society or by any of its directors to Mr Haughey and whether the payments in the sum of £20,000 and described as being for `B Lenihan' were used for the purpose envisaged or for some other purpose."