The Friends of Sinn Fein (FOSF) organisation in the US has stated that it has raised $4.5 million for the party. This includes the $500,000 raised on November 8th at its annual fundraising dinner at the Sheraton Hotel in New York.

The body's president, Mr Larry Downes, said the organisation had raised $4.5 million since it started in 1995 and this was a gross figure. Between 1997 and 1999, the party reported receiving only $424,373 from FOSF donations.

As an agency raising funds in the US for a foreign organisation, Friends of Sinn Fein, whose address is 67 Wall Street, New York, has had to make annual returns to the Department of Justice. The Department's last published listing, for the six months to the end of October 1999, records that FOSF raised $396,759.

In the same period, according to the Department, Friends of Fianna Fail raised $116,500 in the US.

The US fundraising arms of Fine Gael and Labour, Friends of Fine Gael and Friends of Irish Labour, both recorded they had not raised any funds in the US.

Figures supplied to The Irish Times by the Department of Justice show that from October 1995 to October 1999, FOSF raised funds of $2,484,804.

In its accounts to the Public Office Commission, with which all political parties must record donations of over £4,000, Sinn Fein has recorded receiving $424,373 from FOSF in the US.

Fianna Fail has reported to the commission that it raised $101,000 in the same period.

Sinn Fein's next largest foreign fundraising sources is in Australia, where it has a fundraising arm, Friends of Sinn Fein Australia (FOSFA). In its returns to the Public Office Commission for 1999, Sinn Fein reported receiving £61,476 from FOSFA.

Aside from the foreign donations, Sinn Fein has informed the commission that it received £113,405 from other donations.

The figures provided by Sinn Fein to the Public Office Commission suggest it has received donations valued at £2,341,620. In the same period Fianna Fail records receiving £872,665; Labour reports receiving £129,462; and Fine Gael reports receiving £105,370.

The suggestion last weekend by the Taoiseach that he was considering a Labour proposal to ban foreign donations to political parties as part of a new law covering political finances has enraged Sinn Fein.

The Sinn Fein TD, Mr Caoimhghin O Caolain, described the proposals to seek the banning of political donations from outside the State as "deeply flawed".

Speaking on RTE radio on Tuesday, Mr Ahern countered by saying that Mr Gerry Adams had not been following the debate on party funding in this jurisdiction.

Mr O Caolain said: "The attempted restriction of donations from outside this State is a piece of political opportunism aimed at Sinn Fein. Proposals to restrict donations to registered voters in the 26 counties were contained in the Labour Party Bill which was debated in the Dail in May."

He added that he had supported a Government amendment to the Labour motion in the belief there would be a process of consultation.

He added: "As I stated in the Dail, I am in favour of ending corporate donations to political parties. While the Taoiseach's statement contains no proposal to end corporate donations - companies are to be allowed to give up to £20,000 in one year to a political party - it does propose banning donations from outside the State, no matter how small.

"This discriminates against Irish citizens and is specifically aimed at Sinn Fein, the only all-Ireland party. Despite such moves, I am confident that the growth in support for Sinn Fein will continue unabated."

So what is Sinn Fein doing with all its money? The answer is that the party has been spending heavily in preparation for the next general election. In recent years it has opened advice centres and offices throughout the State, particularly in areas where it has electoral support and hopes to gain Dail seats. It has also engaged heavily in voter registration, concentrating on new voters.

The party achieved over 60 urban district, town council, county and city seats in last year's local government elections. It will seek to expand its presence in the Dail substantially in the next general election.

In Northern Ireland, the party has also invested heavily in electoral organisation. There the party seeks to increase both its Westminster and Stormont representation and, particularly, to overtake the SDLP.

If it succeeds in overtaking the SDLP in Stormont elections it would be entitled, under the representation system at Stormont, to hold the Deputy First Minister position now held by Mr Seamus Mallon.

Simultaneously, if it achieves a sufficiently large presence in the Dail it could also be in a position to be part of a coalition government.