Tribunal to hear of £10,000 Dargan cheque

The former chairman and chief executive of Aer Lingus, Dr Michael Dargan (80), has said he will give evidence to the Moriarty tribunal on how a £10,000 cheque made out to him in 1985 ended up with Celtic Helicopters. Dr Dargan may give evidence today.

Last night, Dr Dargan said he had never made any contribution to Celtic Helicopters or to "any of the affairs of Mr Charles Haughey. I was not asked to do so and it was never suggested that I do so."

Yesterday's hearing was also told of a 1986 memorandum by a banker which said that Mr Charles Haughey had a shareholding in Celtic Helicopters, something already denied in evidence to the tribunal by Mr Haughey's son, Mr Ciaran Haughey.

Counsel for the tribunal, Mr John Coughlan SC, yesterday said the £10,000 cheque formed part of the start-up capital for Celtic Helicopters. The cheque was made out to Dr Dargan by Mr John Magnier, the multi-millionaire blood-stock breeder and former member of the Seanad.

Mr Coughlan said he wished to stress that the cheque to Dr Dargan "appears to have been a completely legitimate payment arising out of nomination fees". Dr Dargan is involved in the blood-stock industry and is a director of Goff's Blood-stock Sales Ltd.

Mr Coughlan said Dr Dargan had informed the tribunal "that it was never his intention to make any such investment in Celtic Helicopters or any payment towards the setting up of that company". Dr Dargan has said the sum was due to him by Coolmore Stud, Mr Magnier's Co Tipperary stud. He has also told the tribunal he had no knowledge of how the sum came to be lodged in a Guinness & Mahon bank account, controlled by the late Mr Des Traynor, or how it came to be transferred to the account of Celtic Helicopters, Mr Coughlan said.

Asked if he had not missed the £10,000 payment in 1985, Dr Dargan told The Irish Times that he felt it would not be proper to give answers to questions which he was likely to be asked by the tribunal. He was not concerned about being asked the questions, it was just that he felt it would be better to give his reply to the tribunal.

Dr Dargan is a successful businessman who served on a number of boards, including Cement Roadstone Limited, Fitzwilton and the Bank of Ireland. He has been involved in the blood-stock industry for many years.

At the time Celtic Helicopters was being established in 1985, Mr Traynor sourced £80,000 from a number of investors, as well as securing a loan for £80,000 from Guinness & Mahon bank. At the time Mr Traynor, like Dr Dargan, was on the board of Aer Lingus. The new helicopter company became a competitor to the Aer Lingus subsidiary Irish Helicopters.

The former director general of Bord Failte, Mr Joe Malone, was asked by Mr Charles Haughey to become chairman of Celtic Helicopters when it was being set up but declined because he was on the Aer Lingus board. He has told the Moriarty tribunal that he subsequently contributed £15,000 to the company's start-up capital.

A memorandum written by a former lending officer with Smurfit Parisbas in 1986 described Mr Charles Haughey as having a 12.5 per cent holding in Celtic Helicopters, the tribunal heard yesterday. Mr Michael Curneen wrote the memo following a meeting with the directors of Celtic Helicopters, Mr Ciaran Haughey and Mr John Barnicle. The meeting lasted over one hour. The directors were looking for a £90,000 leasing facility and gave Mr Curneen a detailed description of their company at the meeting.

Ms Caroline Costello, for Celtic Helicopters, said Mr Ciaran Haughey and Mr Barnicle have already told the tribunal that Mr Charles Haughey was never a shareholder. Mr Curneen said: "I think I wrote down what I understood to be the case."

Mr Barnicle also told the tribunal that in February 1992 Mr Charles Haughey pre-purchased £50,000 worth of flying with the company. The purchase was recorded using the name Mr Gary Heffernan, a code name the company used for the former Taoiseach.