Austin handled Smurfit's donation to FF

The late Mr David Austin dealt with the late Mr Des Traynor in relation to a £60,000 donation to Fianna Fail from Dr Michael …

The late Mr David Austin dealt with the late Mr Des Traynor in relation to a £60,000 donation to Fianna Fail from Dr Michael Smurfit, the Moriarty tribunal was told last year.

Mr Austin was also consulted by Dr Smurfit when Mr Traynor asked Dr Smurfit if he would make a contribution towards the finances of the then Taoiseach, Mr Charles Haughey. In the event, no contribution was made.

Mr Austin was an executive director of the Smurfit group and a senior fund-raiser with Fine Gael. He was a member of the party's fund-raising organisation in the US which was involved in raising $50,000 from Telenor in early 1996. The money was lodged in Jersey.

Dr Smurfit gave evidence to the tribunal last July in relation to a £60,000 donation he authorised for Fianna Fail following an approach to him by Mr Haughey. The donation was made in June 1989.

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The money was sent from the account of the John Jefferson Smurfit Monegasque Foundation, AIB Channel Islands, to an account at Henry Ansbacher & Co bank in London.

A statement to the tribunal on Dr Smurfit's behalf said: "While he does not specifically recall doing so, he presumes that he must have requested the late Mr David Austin to deal with the late Mr Traynor in relation to the payment, as Dr Smurfit believes that he was requested by Mr Haughey to deal with Mr Traynor in relation to payment matters."

Mr Austin sent an instruction from the Smurfit group headquarters in Clonskeagh, Dublin, to AIB Channel Islands, stating that the sterling equivalent of £60,000 should be sent to the London account. Mr Austin was an authorised signatory of the Channel Islands account.

The payment was approved at a meeting of the board of directors of the Smurfit Foundation, chaired by Mr Austin. "No written instructions were received from Mr Traynor in relation to this payment and no written receipt of payment appears to have been received," Dr Smurfit told the tribunal.

Dr Smurfit said the method of payment was not the usual one for political donations from him, which were usually by cheque. Mr Haughey had said to him "Des is going to handle this matter for me". It was the only time Mr Traynor had been involved in a political donation from Dr Smurfit or his group to Fianna Fail.

"I was dealing with somebody who was, in my opinion, a close personal friend, a man of total probity. It never occurred to me it was anything unusual," Dr Smurfit said, referring to Mr Traynor. He said that to the best of his knowledge it was the only occasion he was asked to make a political contribution through an offshore bank.

The tribunal discovered that the donation given by Dr Smurfit was lodged to the Ansbacher deposits. A donation received by Fianna Fail, by way of bank draft and which Mr Haughey told the party had come from Dr Smurfit, was in fact from the Dublin Custom House Docks Development Co Ltd. When told at the tribunal that Fianna Fail had not received the Smurfit money, Dr Smurfit said: "Well, that's very sad."

The late Mr Austin was also involved in another aspect of Dr Smurfit's evidence. At some stage in the period 1989 to 1991, Dr Smurfit said, he was canvassing membership of the K Club and he contacted Mr Traynor.

Tribunal counsel Mr Jerry Healy SC, reading Dr Smurfit's statement, said that Mr Traynor "declined to join the K Club and took the opportunity of mentioning to you that he, Mr Traynor, was seeking to raise funds to assist Mr Haughey who, Mr Traynor stated, was in financial difficulties and Mr Traynor asked you to contribute".

Dr Smurfit said he declined, either during the conversation or during a later one. "What normally would have happened in that particular instance, I would have sat down with David Austin and maybe have a chat with him and say what do you think and what were the implications and the pros and cons."

Dr Smurfit said he didn't contribute as he hadn't thought it was appropriate.