FF begins inquiry into funding and leader's allowance

Fianna Fail has began an investigation into the disbursement of the leader's allowance by Mr Charles Haughey while he was Leader of the Opposition. It has also initiated inquiries into election fund accounts in Mr Haughey's former constituency.

Confirming the investigations, the general secretary of Fianna Fail, Mr Pat Farrell, said that they were trying to make contact with the administrator who handled the £750,000 leader's allowance in Mr Haughey's private office between 1983 and 1987. They hoped to speak to the administrator soon to establish if any records were available. "If they exist, we would be happy to have them professionally audited", he said.

He added that the party had no records of the disbursement of the £15,000 a month allowance to Mr Haughey during the same period.

Mr Farrell has also begun an investigation into the allegation of financial mismanagement of funds in Mr Haughey's constituency of Dublin North Central in the early 1980s. The allegations led to the expulsion of Mr Paul McKay, the then treasurer of Fianna Fail in that constituency. Mr McKay is now treasurer of the Progressive Democrats.

The current treasurer of Fianna Fail in Dublin North Central did not have any records of the election fund account in that period, according to Mr Farrell, who said that he had made a number of further inquiries of individuals involved with that account at the time and hoped to hear back from them within days.

Referring to the private investigation conducted in London by Mr Dermot Ahern, on Mr Bertie Ahern's behalf, into a £30,000 donation to a party colleague, Mr Farrell merely stated: "The party leader has had the matter investigated and the investigation was satisfactory."

The Fianna Fail director of elections and former confidant of Mr Haughey, Mr P.J. Mara, said that he was never aware of the former Taoiseach's financial arrangements, "not even in the vaguest way". He added: "I never discussed money with Mr Haughey."

Meanwhile, the Government is likely to postpone the holding of a referendum to relax the rule on Cabinet confidentiality. Sources indicated last night that there may not be sufficient time to implement the previous coalition's decision to have the referendum on the same day as the Presidential election in October or November.

Postponement of the referendum could hinder attempts by a new tribunal to investigate government decisions made by Mr Haughey when he was Taoiseach.

The Supreme Court ruled that government members had an absolute obligation to maintain confidentiality about Cabinet discussions in a ruling handed down during the beef tribunal. The rainbow coalition decided that the rule would have to be relaxed and approved legislation on this before leaving office. The proposed change would allow the High Court to determine whether disclosure of Cabinet information was in the "public interest".

The relaxation of the rule would have a bearing on the nature and extent of the information about Cabinet decisions which could be revealed to a new tribunal.