Desmond's solicitors to examine publicity created by `Magill' article

Following further media reporting over the weekend a spokeswoman for businessman Mr Dermot Desmond said last night he had now…

Following further media reporting over the weekend a spokeswoman for businessman Mr Dermot Desmond said last night he had now instructed his solicitors to review "all publicity" emanating from the Magill magazine article and to take legal action if necessary.

He has already initiated legal proceedings against Magill following the article on the financial relationship between him and the former Taoiseach, Mr Charles Haughey.

In his second statement in two days on his dealings with Mr Haughey, Mr Desmond confirmed that he paid almost £500,000 in investments, loans, commercial advances, election expenses and gifts to Mr Haughey's children or to companies in which they were involved.

In 1987-88 Mr Desmond invested £17,500 in a foal partnership operated by Mrs Eimear Mulhern, Mr Haughey's daughter. This partnership interest had continued and was now held by Mrs Pat Desmond.

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In 1990 Mr Desmond arranged loans of £75,546 in consultation with Mr Haughey's son, Conor, for the refurbishment of the boat Celtic Mist, which he skippers and owns with the other Haughey children.

"These loans have been settled," Mr Desmond's statement said.

He and "related companies" had also invested a total of £275,000 in Feltrim Mining plc, now Minmet plc, of which Mr Conor Haughey was a founding director.

"To date, Mr Desmond has sold shares in Feltrim to the value of £744,000 and retains shares with a current value of £112,000. The net realised and retained profits exceed £500,000," his statement added.

In 1995 IIU Ltd, a company of which Mr Desmond is chairman, made a commercial advance of £100,000 to Celtic Helicopters, where Mr Haughey's son, Ciaran, is a director and shareholder. This advance was "to cover flying hours for executives", and to date hours to the value of £56,150 had already been used.

According to the statement, Mr Desmond had contributed no more than £2,000 to Mr Sean Haughey for his election expenses, and there were no other gifts or payments except for wedding and Christmas presents, which did not exceed £15,000 altogether.

The statement confirmed that Mr Desmond did make payments to Mr Haughey since 1994 and that these issues could fall within the terms of reference of the Moriarty tribunal.

"Mr Desmond has already stated that he will fully co-operate with this tribunal", the statement added.

No other payments had been made or arranged, directly or indirectly, to Mr Haughey and his family by Mr Desmond.

Meanwhile, Government sources last night confirmed that on legal advice it would not be possible at this point to change the terms of reference of the Moriarty tribunal to include an investigation of the Ansbacher accounts.

In his earlier statement, Mr Desmond said he was neither a holder of deposits nor a beneficiary of the Ansbacher accounts.