A former Aer Lingus chairman and Bank of Ireland director, Dr Michael Dargan, has told the Moriarty tribunal that he had an offshore account with Ansbacher Cayman which Guinness & Mahon opened for him, but this was used only for the international transfer of funds.
Dr Dargan confirmed that a £10,000 cheque paid to him by the horse breeder Mr John Magnier ended up being given to Mr Ciaran Haughey's company, Celtic Helicopters.
But Dr Dargan denied ever investing or contributing to Celtic Helicopters, and said he could not explain how the £10,000 cheque was lodged to its account.
He said he believed the proceeds of the cheque would have been directed to his son who was living in the US.
In his evidence yesterday, Dr Dargan confirmed that over a number of years he had received payments from stud companies with which Mr Magnier was associated, and other companies, consisting of nomination fees in respect of shares in blood-stock.
The receipts in relation to each stallion were destroyed on the death of the animal, but Dr Dargan had received a cheque for £10,000 in respect of a stallion in March 1985. A letter from Coolmore Castlehyde and Associated Stud Farms, dated March 22nd, 1985, in respect of a stallion called Thatching included this cheque. In the letter, Mr Jerome Casey, the stud farm's accountant, said the £10,000 represented total dividends to date regarding Thatching.
The £10,000 cheque was made payable to Dr Dargan and was drawn on an account at the AIB branch at St Patrick's Bridge in Cork.
Dr Dargan accepted that it had been confirmed by the tribunal that the cheque ended up being lodged in an account of Amiens Securities in the Guinness & Mahon bank and had ultimately been paid to Celtic Helicopters.
However, Dr Dargan said he had no knowledge of this transaction. He knew he would have used the Guinness & Mahon bank for the transfer of monies, particularly in relation to his son who was a partner with him in a number of sires, shares and nominations. Funds were transferred internationally through the bank, he said.
Mr John Coughlan, counsel for the tribunal, said that a tracing exercise conducted by the Guinness & Mahon bank had shown that the sum of money relating to the £10,000 cheque had found its way to an Amiens Securities account.
Asked by Mr Coughlan whether he knew anything about it. Dr Dargan replied: "I know absolutely nothing about it.
I didn't know such an account existed and I offered no such instructions."
Mr Coughlan said the bank had also found out that this money ultimately went to Celtic Helicopters and asked Dr Dargan whether he knew anything about that.
"No", replied Dr Dargan.
Mr Coughlan asked whether the money could have been temporarily diverted to the Amiens Securities account.
Dr Dargan said he did not know how Guinness & Mahon operated its affairs, but he would not have expected dishonesty to that degree, "and I would have expected that even if it had been temporarily, wrongly appropriated, it would have come because I trusted the people".
Dr Dargan strongly denied that he had sent the money to Celtic Helicopters, saying: "I have never made a contribution to, or an investment in, Celtic Helicopters, nor to Mr Haughey's affairs, nor was I ever asked, nor was I ever encouraged."
Under examination from Mr Paul Gallagher SC, counsel for Guinness & Mahon, Dr Dargan said he had written to Ansbacher Cayman last year asking for a statement about any account he had with it and details of transactions. However, the bank said it had no information for him.
Dr Dargan confirmed that he had been a director of the Bank of Ireland for about 13 years from 1974 or 1975 and it was probable he had been in this position in 1985.
Mr Gallagher suggested that as a director of the bank, Dr Dargan would have been familiar with exchange control regulations.
"I don't know. I don't know what the exchange control regulations are," said Dr Dargan.
Mr Gallagher asked him if he was seriously suggesting that during his period as a non-executive director of the bank he was unfamiliar with requirements regarding the transfer of funds abroad.
Dr Dargan said he did not associate the bank with any of his personal transactions in this regard and never studied exchange control regulations as he had no reason to.
Mr Gallagher said that if Dr Dargan intended this money to go to his son abroad he would have needed exchange control permission at the time.
"Well, if so, I had been doing it every month," said Dr Dargan.
Mr Gallagher said that a number of cheques had been lodged with Amiens Securities, and Dr Dargan said this had been in relation to stallions, shares or nominations, "money which was not taxable".
Dr Dargan confirmed that he was associated with Thames International, a name his son had set up in London.
Mr Gallagher asked why Dr Dargan had not lodged the money he intended to transfer to his son with this account in London. Dr Dargan said he hoped that this would have happened.
Mr Gallagher said six cheques payable to Dr Dargan or to Thames International had been lodged with Amiens Securities between January and March 1985 and asked why Mr Traynor might have lodged them into this account.
Dr Dargan said he had no idea, and that this had been done entirely without authority.
Mr Gallagher asked Dr Dargan why he would have sent money to his son in the US if he did not know whether his son had an account there or not.
"Because he could have changed it in America whether he had an account or not," said Dr Dargan.
Mr Gallagher said Dr Dargan had indicated he was sending the proceeds of cheques and that this would not have needed changing. He asked where the proceeds were going to end up in America if he had no account.
"In his pocket," said Dr Dargan.