Two of Ireland's major meat processors, Goodman International and Taher Meats, had business links with an Iraqi bank from which Mr Charles Haughey is believed to have offered a £10 million deposit to AIB as part of a deal to settle his debts.
In October 1979 the former Taoiseach offered to pay AIB £400,000 in full and final settlement of his overdraft facility before the end of that year.
In conjunction with this, Mr Haughey mentioned the possibility that AIB would be offered a £10 million deposit from a Middle Eastern bank at interest below the market rate. Documents submitted to the Moriarty tribunal state that AIB showed no enthusiasm for the proposal.
The tribunal heard yesterday that the bank referred to is believed to be the London branch of the Iraqi state-owned bank Rafidain. It was predominantly a vehicle for international trade finance and had business relationships with Goodman companies and Taher Meats.
Rafidain, which also held deposits, was put into provisional liquidation in 1990 following the UN sanctions imposed after Iraq's invasion of Kuwait. Goodman interests were one of the creditors which petitioned the UK High Courts for the appointment of the provisional liquidator. The bank has debts of $2.5 billion (£1.8 billion). No comment was available from Mr Larry Goodman last night.
Companies exporting to Iraq were required to use one of the state-owned banks to facilitate payments. The bank's relationship with Mr Goodman's companies and Taher Meats is mentioned in the beef tribunal report.
The report says that on securing a contract to export products to Iraq the exporter would be required to lodge a bond to the value of a proportion of the total exports. The report shows that, responding to one tender offer in 1987, Anglo Irish Beef Packers placed a bond of DM1.2 million (£480,000 at today's conversion rate) with Rafidian. Taher Meats also had trade finance arrangements with Rafidain. In 1991 it became involved in a court action with the bank after it made a demand for payment on a guarantee given by Ulster Bank in relation to a meat export contract to Iraq in 1989. Taher Meats was purchased from Mr Naser Taher by Mr Pascal Phelan in 1991.