Minister for Justice Gerry Collins agreed to pay the legal costs for his predecessor Michael Noonan in a libel action over money allegedly destined for the IRA.
In February 1985 the coalition Fine Gael-Labour government passed overnight emergency legislation freezing a sum of IR£1.7 million (€2.1 million) which had been deposited in the Bank of Ireland in Navan, Co Meath.
Speaking in the Dáil at the time, Mr Noonan, then the Minister for Justice, claimed the money was destined for the Provisional IRA.
A report from The Sunday Times Insight team said the money had been paid by Associated British Foods (ABF) to ensure there would be no more attempted kidnappings of its executives.
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Government agreed to pay Michael Noonan legal costs for libel case over alleged IRA money
In 1983 the Provisional IRA attempted to kidnap ABF chairman Galen Weston and later kidnapped Quinnsworth managing director and chairman Don Tidey, who was rescued after the kidnap gang shot dead Pte Patrick Kelly and Garda recruit Gary Sheehan.
Two businessmen, Alan Clancy and David McCartney, claimed the money was theirs and was for a legitimate pork export business. They sued the State in the High Court claiming that the seizure of the money infringed their constitutional rights.
Mr Noonan was out of office when he went on RTÉ radio in August 1988 expressing satisfaction at the judgment. When asked if he was sure that the money involved was destined for the IRA, he responded, “No doubt at all. I had intelligence information provided to me by An Garda Síochána which left me in no doubt whatsoever and also left me in a position where I feel I had an absolute responsibility to act.”
Mr Clancy sued for libel, stating that Mr Noonan had defamed him in suggesting that he was acting as an agent for the Provisional IRA.
Mr Noonan asked the government to help pay his legal costs arising out of the action and the matter was raised at cabinet level.
A file in the Department of Justice indicates that Mr Collins assured his predecessor that the State would pay his legal costs in the event of the libel action going any further.
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