The Taoiseach has confirmed he was warned about suspected serious corruption linked to Mr Burke before appointing him a minister.
Speaking in Cork yesterday, Mr Ahern corroborated former taoiseach Mr Albert Reynolds's claim that he supplied sensitive information to him about the disgraced former deputy.
"There is no doubt that what he said was correct. I got Máire Geoghegan Quinn to bring the file over to me but that wasn't before I appointed Ray Burke. That was back in December 1994.
"Of course I didn't take over as Taoiseach then. It was Nora Owen who then investigated those issues."
Mr Ahern said that when he was voted into office, the file relating to Mr Burke's involvement in the passport-for-sale scheme was re-examined.
The Fianna Fáil leader conceded that the scheme showed peculiarities but said there was nothing wrong with the investment, the processing or the passport. "All of the passport issues subsequently, if I recall correctly, went to the Moriarty tribunal. The 'passport-for-sale files', as they were called then, were all investigated. This is actually a very old story."
Mr Ahern said alarm bells weren't raised when he read the files, adding that he wouldn't have appointed Mr Burke to his Cabinet if he had been seriously concerned. He denied accusations of misleading the Dáil and said he would not respond to being called a liar by Labour Party leader Mr Ruairí Quinn.
"I won't recall to anyone saying that about me. All of these matters were in the Dáil and were all part of a five-year investigation by the Flood tribunal. All of them have been examined comprehensively."
In relation to a Sunday newspaper report which claimed that a serving Minister was given £80,000 (€100,000), Mr Ahern said the allegations could only refer to four current Ministers who had served from 1989 to 1992.
He maintained he had spoken to the four and they had given him assurances that they knew nothing about the matter.