Desmond approached to join syndicate

Mr Dermot Desmond has told the tribunal that he was approached by Mr Des Traynor some time around November 1987 and asked to participate in a five or six-person syndicate which would advance funds to repay what Mr Traynor described as "our friend's borrowings".

In a statement to the tribunal, Mr Desmond said he understood this to be a reference to Mr Charles Haughey and that he declined to provide any financial assistance.

Mr Desmond said that apart from this approach, he had no further dealings with Mr Traynor concerning Mr Haughey.

However, Mr Desmond has confirmed that he made two further payments for the benefit of Mr Haughey, which he described as of "a private nature".

The first was a payment of £100,000 sterling in September 1994, and the second a payment of £25,000 sterling in October 1996.

Both lodgements appeared in a memorandum of accounts relating to a bill-paying service operated for Mr Haughey's benefit. The service was operated by BEL Secretarial Ltd, a company run by Mr Jack Stakelum.

The first transaction appeared as a credit of £99,988 on October 3rd, 1994, corresponding to a payment of £100,000 sterling. The second appeared as a lodgement on November 12th, 1996, of £24,630.50 (£25,000 sterling).

Explaining the circumstances behind this, Mr Stakelum had told the tribunal that Mr Haughey asked him to contact Mr Desmond about October 1996 and indicated that the businessman would be making a lodgement for the purpose of "defraying bills".

After receiving the payment from Mr Desmond, Mr Stakelum lodged it in a sterling account and subsequently transferred the funds to an account for the bill-paying service.

A total of £2 million was paid out of the bill-paying service in the period February 1991 to December 1996. A further £1.4 million was paid out of an earlier bill-paying service for Mr Haughey's benefit operated between January 1985 and January 1991 through an account at the firm, Haughey Boland.

The amounts paid out on behalf of Mr Haughey in that period were: £189,000 in 1985, £177,000 in 1986, £204,000 in 1987, £232,000 in 1988, £325,000 in 1989 and £264,000 in 1990. A further £16,000 was paid out in January 1991.