Celtic Helicopters investor in Lotto deal

A US businessman whose company won a multi-million pound contract to run the Lotto has been named as an investor in Celtic Helicopters.

Mr Guy Snowden, the founder and former major shareholder in G-Tech, invested $100,000 (£67,000) in Celtic Helicopters - the company run by the former Taoiseach's son, Mr Ciaran Haughey - in early 1993. This followed an approach the previous year from Mr Charles Haughey's financial adviser, Mr Des Traynor.

Last year Mr Snowden resigned from the UK lottery operator, Camelot, after he lost a libel case against businessman Mr Richard Branson, who had accused him of offering a bribe in 1993 in the hope that he, Mr Branson, might withdraw his rival bid for the British lottery. Mr Snowden also resigned as a director of G-Tech and sold most of his shareholding.

In October 1987, Mr Snowden's company was awarded a contract for the installation and operation of the on-line system for the Lotto. The multi-million pound contract was renewed in 1993.

Last night a spokeswoman for the National Lottery said G-Tech "have provided a service for our 3,000 terminals nation-wide for the past 11 years and we are very, very happy with that service. I cannot comment further than that." She said she could not disclose details of the payments to G-Tech. The company had won the contract in a competitive tender which involved a number of parties.

The Moriarty tribunal heard yesterday that in late 1992 Celtic Helicopters was close to bankruptcy and sought to raise capital. The company's main shareholders are Mr Ciaran Haughey and Mr John Barnacle. Mr Barnacle said that Mr Traynor raised over £290,000 from five individuals.

The investors were: property developer Mr John Byrne (£47,532); Kerry businessman Mr Xavier McAuliffe (£50,000); the late Mr Pat Butler of Butler Engineering, Portarlington (£25,000); Mr Guy Snowden (£67,000). Mr Michael Murphy, an insurance broker from Trinity Street, Dublin, was linked with the investment of £100,000 which may have come originally from Mr Ben Dunne.

Mr Butler's firm, which went into receivership in 1996, also received an investment as a result of the passports-for-sale scheme. Official documents are known to suggest that Mr Charles Haughey personally handed over certificates of naturalisation for 11 people in December 1990, during lunch at the Shelbourne Hotel, Dublin.

The certificates were intended to provide passports to associates of Sheikh Khalid bin Mahfouz, the owner of Saudi Arabia's only private bank, who attended the Shelbourne lunch. In return Sheikh Khalid handed over a letter of intent to invest £20 million sterling. The letter was addressed to Haughey Boland & Co, Mr Haughey's old accountancy firm which was by then part of Deloitte & Touche. Some of the money went to Butler Engineering.

Deloitte & Touche were involved in organising the £290,000 investment in Celtic Helicopters and in reflecting the investment in a share issue.

The tribunal heard that the original investors in Celtic Helicopters - in the mid 1980s - were Mr Seamus Purcell, Mr Joe Malone and hotelier, the late Mr P.V. Doyle.

The Moriarty tribunal also heard yesterday from the former Minister for Health, Dr John O'Connell, that in March 1985, two months after he became a Fianna Fail TD, he was summoned to Mr Haughey's office and asked to make a contribution of £5,000 to Celtic Helicopters. He made the contribution.

He said: "Mr Haughey told me he was asking a few friends to make a contribution of £5,000 each. I joined the party in January 1985 and this was in March. I presumed that a lot of members of the party had been asked to contribute."

Mr Haughey had later told him "if ever you want a lift in a helicopter don't hesitate to ask", he said.

O'Connell recalls Haughey cash request: page 8