Lenihan cheque was cashed by Haughey, Moriarty tribunal told

Money given by donors to defray the expenses incurred by Mr Lenihan's liver transplant in the United States was diverted on at…

Mr Charles Haughey diverted at least £45,000 from the Brian Lenihan medical fund, according to evidence read into the public record at the Moriarty tribunal today.

Money given by donors to defray the expenses incurred by Mr Lenihan's liver transplant in the United States was diverted on at least two occasions.

The first instance concerned a £20,000 cheque intended for the medical fund that was cashed by Mr Haughey in the Allied Irish Bank branch in Baggot Street in Dublin instead of being lodged with other donations for Mr Lenihan.

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I totally reject that funds for a man who was closer to me than one of my brothers was diverted for my own use
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Mr Charles Haughey on the Brian Lenihan medical fund.

The cheque had been drawn up by Dr Edmund Farrell, then managing director of the Irish Permanent Building Society in June 1989, the tribunal heard.

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In the second case a cheque issued by Customs Dock Development Ltd for £25,000 for Mr Lenihan's fund ended up in Fianna Fáil headquarters in Mount Street registered as a political donation.

According to Mr Mark Kavanagh from the company, the £25,000 was part of a £100,000 donation which, under instructions from Fianna Fáil was to be paid in the form of a £25,000 cheque payable to Fianna Fáil, and three bank drafts for similar amounts that were to be cashable.

Over the course of the dayevidence given by Mr Haughey in private sessions was made public.

In the case ofthe Irish Permanent Building Society contributions Dr Farrell said Mr Haughey had approached him at a business meeting in 1989 at which plans for the IFSC were unveiled and asked him to help with the Brian Lenihan medical fund and with Mr Haughey's constituency expenses.

As a result Dr Farrell had issued two cheques to Mr Haughey - one for £10,000 for constituency expenses and one for £20,000 for Mr Lenihan's medical fund.

But instead of being lodged in the party leader's account, according to Mr John Coughlan SC for the tribunal, the two cheques were lodged to Celtic Helicopters account at the Bank of Ireland, Dublin Airport branch, a week later.

A week later again a cheque for £30,000 was drawn on that account and cashed personally by Mr Haughey in the Baggot Street branch of Bank Of Ireland.

In the case of Customs Dock Development Ltd the money was handed over to Mr Haughey personally in his house in Kinsealy on election day, June 15th, 1989.

Of £100,000 of this donation £75,000 eventually ended up in Fianna Fáil party headquarters while the remaining £25,000, after being lodged in an account in Guinness Mahon controlled by Mr Haughey's accountant, the late Des Traynor, was drawn down in two tranches of £20,000 and £5,000.

Mr Haughey vigorously denied the allegations when put to him at the private sitting of the tribunal over 20 days last January.

He denies having cashed the cheques and said his charitable and "passionate efforts" to save a friend were "being turned against him in a very cruel way".

"I totally reject that funds for a man who was closer to me than one of my brothers was diverted for my own use," Mr Haughey said.

Tomorrow the tribunal will continue hearing Mr Haughey's cross-examination through deposition.