Haughey breaks silence on cheque for Lenihan

Even with Mr Charles Haughey's fall from grace in recent years the possibility raised yesterday that he had taken money meant…

Even with Mr Charles Haughey's fall from grace in recent years the possibility raised yesterday that he had taken money meant for a liver operation for his former friend and political ally, the late Brian Lenihan, is profoundly shocking.

Counsel for the tribunal Mr John Coughlan SC, in an opening statement, said a £20,000 cheque from the Irish Permanent Building Society, dated June 7th 1989 and made out to Mr Charles Haughey, was lodged to an account in the name of Celtic Helicopters at Dublin Airport. A second cheque with the same date for £10,000, also from Irish Permanent and also made out to Mr Haughey, was lodged to the same account.

On June 21st, 1989, £30,000 was withdrawn from the Celtic Helicopters account by way of a cheque. Mr Coughlan said the tribunal does not have a copy of the cheque. Celtic Helicopters is run by Mr Haughey's son, Mr Ciaran Haughey. As Mr Coughlan put it, the tribunal will examine whether the Lenihan payment "was used for the purpose envisaged or for some other purpose."

The two cheques made out to Mr Haughey were signed by Dr Edmund Farrell and Mr Enda Hogan, both directors of the Irish Permanent. Mr Hogan, Mr Coughlan said, has a recollection of being told Mr Lenihan was undergoing a liver transplant and that Dr Farrell believed the society should make a contribution towards his expenses. The cheque stub was marked "B Lenihan".

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Dr Farrell made the decisions as to political donations, according to Mr Hogan. In 1989 the society gave £65,000 to Fianna Fail, £20,000 to Fine Gael and £10,000 to Labour. A general election was taking place.

That Mr Haughey could have taken money from a fund created to pay for lifesaving treatment for his then close friend and colleague is an allegation of a different order from the receipt of funds from a businessman or their lodgement to an offshore account. Mr Coughlan, in his statement to the tribunal, said Mr Haughey had been asked to comment on the matter but had not.

Last evening Mr Haughey broke his silence. A brief statement issued to the media on his behalf said the fund created for Mr Lenihan's benefit was initiated and spearheaded by him and led to an operation which "was successful in saving Brian's life. The funds were properly applied. A full statement on the utilisation of the fund subscribed will be made later when we have access to the records."

The statement was issued from the offices of Mr Haughey's solicitors, Ivor Fitzpatrick and Co. Mr Haughey's legal team has not turned up at the tribunal for some months, for reasons which have not been explained.

The statement on behalf of Mr Haughey did not mention the second subject covered in Mr Coughlan's opening remarks, the party leader's allowance.

This is an allowance given to the leaders of political parties to help fund the running of parties represented in the Dail. A schedule read out showed that Mr Haughey was given annual payments ranging in size between £196,612 and £90,333 in the years 1984 to 1991. He was leader of the party for less than two months in 1992.

Mr Haughey's practice was to endorse the cheques. One of his secretaries, Ms Eileen Foy, lodged them to the FF party leader's account in AIB, Baggot Street. Ms Foy administered the account, which was used for salaries and other expenses. Cheques could be signed by Mr Haughey, Mr Bertie Ahern, or Mr Ray MacSharry. Two signatures were needed.

Mr Coughlan said Mr Ahern has told the tribunal it was his practice to sign a number of blank cheques at any one time. This gave Ms Foy the freedom to fill in cheques as required and present them to Mr Haughey for countersigning. Ms Foy, in evidence, confirmed this. She said Mr MacSharry was rarely involved in the process.

Ms Foy would present Mr Haughey with cheques and supporting documentary evidence for payments, such as invoices. She said Mr Haughey would check that everything was in order before countersigning the cheques. She would then take them away and give or send them to the payees.

She could not explain how a cheque for £25,000 was made out to cash on June 16th, 1989. She had no memory of the cheque, or of making out any cheque to cash. The amount is equal to a quarter of the leader's allowance for the year. The cheque was lodged to an account in Guinness & Mahon bank linked to Mr Haughey. She said she never had any dealings with that bank.

Another two cheques, made out to cash and for £10,000 and £5,000 respectively, were cashed at AIB bank, Baggot Street, in September 1991 and April 1991 respectively. A cheque for £7,5000 dated September 18th, 1991, was exchanged at AIB Baggot Street for French francs.