Ahern set to outline details on nature of donations

Taoiseach Bertie Ahern is to release a statement before the Dáil resumes tomorrow about donations made to him by businessmen …

Taoiseach Bertie Ahern is to release a statement before the Dáil resumes tomorrow about donations made to him by businessmen in the early 1990s during his time as minister for finance.

Mr Ahern refused yesterday to give any more information about the sums, some of which were used to pay legal bills in 1993 incurred during his separation from his wife, Miriam.

Last night, sources close to Mr Ahern said he had accepted that further details about the payments, believed to range between €50,000 and €100,000, will have to be given.

The final arrangements for Mr Ahern's next move are not yet known, though it could happen as early as today.

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It is not clear whether he is planning to take questions on the content of any statement before the Dáil resumes tomorrow afternoon.

Fine Gael leader Enda Kenny will today heighten pressure by charging Mr Ahern's conduct and his refusal to answer questions have "compromised the office of the Taoiseach".

The Minister for Tourism John O'Donoghue has said that the Taoiseach has "no tax liability" relating to the receipt of money from businessmen friends in 1993 to assist him during his separation from his wife.

Speaking on Questions and Answers last night Mr O'Donoghue said Mr Ahern had "behaved properly throughout" and he indicated that his delay in making a statement in relation to the controversy was due to concerns over the privacy of the donors and his wife Miriam.

He said the Taoiseach had "a genuine fear in formulating a statement that he would in some way compromise people" and expose private individuals "to the public glare" .

The Green Party has demanded that the Government makes time available for an emergency Dáil statement by Mr Ahern, followed by a question-and-answer session with TDs tomorrow afternoon.

Nevertheless, senior advisers remain confident Mr Ahern can deal with the crisis, though they admit it has badly damaged the Government's plans for the launch of the political season.

Progressive Democrats leader Michael McDowell once again stayed removed from the fray, though his decision is beginning to concern some within the party.

Ministers and office-holders are obliged in certain circumstances to declare personal loans made to them by friends, even if the loans predate the 1995 ethics legislation.

Up to now, it has been thought that Mr Ahern did not have to declare the 1993 monies, because the legislation was then not in force and because the monies were used for his personal use.

The situation will become serious if any on the list of donors to Mr Ahern subsequently benefited, or could potentially have gained, from his decisions as minister for finance or later as Taoiseach.

The Irish Times has learned that the Standards in Public Office Commission (SIPO) has warned politicians about using interest-free loans for political purposes, following controversy in Britain.

The ethics watchdog has advised that the value of interest forgone on an interest-free loan should be considered by parties as a gift or donation for ethics legislation.

The Dáil's standards body, the SIPO has said it may require "sight of the terms and conditions, including the interest charge, applying to the loan and may require confirmation that the loan has been repaid in accordance with these terms and conditions".

Officials from the commission believe a still-outstanding interest-free loan, if sufficiently large, could come under the remit of ethics legislation, regardless of when the loan was initially provided.

If the value of the interest forgone exceeds a certain level - over €4,000 for a party or €650 for an individual in a given year - this should be declared, the SIPO has advised.

Green Party Cork South Central TD Dan Boyle requested a special Dáil debate from Government Chief Whip Tom Kitt yesterday afternoon, though the Taoiseach will make the final decision.

"Amongst the questions that need to be answered are the sums of money received by the Taoiseach, the people who gave this money to the Taoiseach and whether these people as individuals - or businesses which they are associated with - have benefited in any way because of decisions made by Bertie Ahern as minister for finance in 1993," he said.