Murphy libel trial to be embarrassing for Taoiseach

The Taoiseach's account of his investigations into Ray Burke in 1997 are set to be re-aired in a controversial libel trial due in the High Court shortly.

Later this month, the court will set a date for the hearing of defamation proceedings brought by Mr Joseph Murphy junior of JMSE against the Minister for Communications, Marine and Natural Resources, Mr Dermot Ahern, and RTÉ. The case, which centres on remarks the Minister made about Mr Murphy on RTÉ's Primetime programme in autumn 1997, could be heard as early as next month.

In June 1997, Mr Dermot Ahern was sent by the Taoiseach, Mr Ahern, to interview Mr Murphy in London about allegations that JMSE paid Mr Burke £30,000.

Mr Murphy told Mr Dermot Ahern that JMSE had made no payment and he confirmed this at a second meeting in Dublin a week later. Mr Ahern reported back to the Taoiseach, who appointed Mr Burke to the Cabinet.

It later emerged there had been a payment. Last month, the interim report of the Flood tribunal found that the payment was corrupt and that Mr Murphy was the man who handed the money to Mr Burke.

It also found that he hindered and obstructed the tribunal by lying about his involvement in the Burke meeting, his dealings with the developer Mr Michael Bailey and the involvement of Mr James Gogarty in the affair.

Mr Murphy has indicated he does not accept the findings of the tribunal as accurate and fair and he will challenge them. Such a challenge is likely to take the form of a judicial review in the High Court.

It isn't clear whether he will proceed with the defamation proceedings in the light of the findings of Mr Justice Flood.

One option would be to defer the matter until he has challenged the tribunal report.

However, if the case does go ahead, it is likely to cause more political embarrassment for the Taoiseach and Mr Dermot Ahern.

In his evidence to the tribunal, Mr Murphy claimed that he had been told by Mr Bailey that there had been a three-hour meeting between Mr Bailey, Mr Burke and the Taoiseach over the allegations about Mr Burke. This allegation has been denied by the parties allegedly involved.

Mr Murphy is also embroiled in legal tussles with the Sunday Independent, which is seeking the return of almost £70,000 awarded to the businessman in a libel case last year.

On foot of the tribunal report, the newspaper claims the award was fraudulently obtained.

Mr Murphy's lawyers could not be reached yesterday.