The Minister for the Environment, Mr Dempsey, met Mr Michael Bailey of Bovale Developments in 1997 at the behest of the Taoiseach, Mr Ahern, the Flood tribunal was told yesterday. The purpose of the meeting was to ascertain the truth or otherwise of rumours about financial contributions to Mr Ray Burke.
The meeting was held around the same time in June 1997 that Mr Dermot Ahern - now Minister for Social, Community and Family Affairs - was meeting Mr Joe Murphy jnr, also for the purpose of examining financial contributions to Mr Ray Burke.
Both Mr Murphy and Mr Bailey are now central witnesses to the Flood Planning and Payments Tribunal.
The allegation that Mr Dempsey also investigated Mr Burke was made by Mr Garrett Cooney SC during his cross-examination of Mr Dermot Ahern.
Mr Ahern acknowledged meeting Mr Murphy jnr at the Taoiseach's behest in June of 1997 in London. Mr Ahern said he met Mr Murphy jnr again in July of that year when Mr Murphy jnr came to Dublin. They had swapped phone numbers.
Mr Cooney also put it to Mr Ahern that he had telephoned Mr Murphy jnr on the morning that Mr Burke made his "exculpatory statement" in the Dail on September 10. Mr Ahern said he could recollect no such phone call. Mr Cooney said the telephone logs would reveal that such a call was made.
Mr Cooney contended that Mr Ahern had telephoned Mr Murphy's home, identifying himself only as Dermot and speaking to Mr Murphy jnr's wife. It will be Mr Murphy's evidence that Mr Ahern was again concerned about Mr Burke's account of his dealings with the Murphy group.
Mr Ahern said he had no recollection whatsoever of the conversation. His mind was, he agreed, "blank" on the subject.
Mr Dermot Ahern said the Taoiseach, Mr Bertie Ahern, was aware of the allegations concerning Mr Burke and wanted to get to the bottom of the matter. "He asked me to find out if any money had been given", he added. Mr Dermot Ahern said the Taoiseach had indicated that contact would also be made with Mr Michael Bailey, although Mr Ahern insisted that yesterday was the first time he had learned of the alleged involvement of Mr Dempsey in the process.
"I never knew that. No. Never" he commented.
Mr Ahern said Mr Murphy had indicated very forcefully that none of his or his company's money had been paid to Mr Burke. He explained that the land had been sold for agricultural value and that the alleged bribe to Mr Burke did not make sense in that light.