Haughey link to money for Lenihan operation

The Moriarty tribunal is investigating whether money raised for a life-saving liver operation for the late Mr Brian Lenihan was used by Mr Charles Haughey for his own benefit.

A cheque for £20,000 from the Irish Permanent Building Society made out to Mr Haughey in June 1989, and intended to assist payment for the operation in the US for Mr Lenihan, was lodged to a Celtic Helicopters account.

It was lodged along with a cheque for £10,000, also from Irish Permanent, and intended as a political donation to Mr Haughey. Just two weeks later £30,000 was withdrawn from the account. The helicopter company is run by Mr Ciaran Haughey.

Counsel for the tribunal, Mr John Coughlan SC, said the tribunal would examine whether the £20,000 was "used for the purpose envisaged or for some other purpose". Mr Lenihan's sister, the Minister for Public Enterprise, Ms O'Rourke, last night declined to comment on the development.

The tribunal is also investigating whether funds given by the State to Fianna Fail to help fund its operations went for the benefit of Mr Haughey. A cheque for £25,000 made out to cash and drawn on the party leader's allowance account was lodged to an account in Guinness & Mahon bank which has been linked to payments to Mr Haughey. Other payments from the leader's account have also been linked to Mr Haughey's personal finances.

The £25,000 cheque was signed by Mr Bertie Ahern and Mr Haughey. Ms Eileen Foy, private secretary to Mr Haughey, who administered the leader's allowance for more than 10 years, said cheques had to be signed by two people. The third authorised signatory was Mr Ray MacSharry, but he rarely signed cheques. Mr Ahern would sign blank cheques which she would later fill in and have Mr Haughey countersign.

Ms Foy said many of the donations to the fund for Mr Lenihan were given to Mr Haughey and by him to her for lodgement in a Baggot Street account.

The following statement was issued on behalf of Mr Haughey:

"It was Charles Haughey as leader of Fianna Fail who initiated and spearheaded the humanitarian project of raising a fund which would enable Brian Lenihan's wife and family to take him to the Mayo Clinic in the United States for a life-saving liver transplant operation.

"With the help of a group of loyal friends and supporters this was achieved and the operation was successful in saving Brian's life. The funds raised were properly applied. A full statement on the utilisation of the fund subscribed will be made later when we have access to the records."