In a general conversation with Mr Dermot Desmond in 1994, Mr Charles Haughey mentioned he was thinking of joining the board of a German bank as a non-executive director. The former Taoiseach said he didn't really want to take up the position, but he needed the money.
The conversation took place some time after the death, in May 1994, of Mr Des Traynor. From evidence heard this week we know that in July 1994, Mr Haughey had more than £1 million in his Ansbacher deposit accounts. Given his lifestyle, the money was not likely to last more than four or five years.
Mr Desmond said he'd give Mr Haughey money. "I suggested he look at restructuring his assets and that if money was needed, I would make it available to him."
Mr John Coughlan SC, for the tribunal, asked if the offer was open-ended. "If he needs money now on the back of his assets, I would gladly make it available to him," Mr Desmond said.
Mr Desmond gave Mr Haughey £100,000 sterling in September 1994, and £25,000 sterling in 1996. Mr Desmond is not tax-resident in this jurisdiction and the money came from Switzerland and Gibraltar. As the terms of reference of the tribunal cover the period to December 1996, Mr Desmond was not asked if he had given money to Mr Haughey since that date. He declined to answer questions when leaving Dublin Castle.
Questioned why he would want to give Mr Haughey money, Mr Desmond said: "I am very pleased with all my interactions and dealings with Mr Haughey."
He wasn't asked to what dealings he was referring. It was Mr Haughey who championed Mr Desmond's idea of setting up the Irish Financial Services Centre.
National City Brokers, of which Mr Desmond was chairman and chief executive up to 1991, conducted Government and State work during Mr Haughey's period as Taoiseach, including work on the privatisation of Greencore.
Mr Desmond said he had no intention of asking for the money back until Mr Haughey's present difficulties were over, a reference presumably to the McCracken and Moriarty tribunals, and the Revenue investigation into Mr Haughey's affairs. Pressed by Mr James Connolly SC, for the Revenue, to admit the loans were really donations, Mr Desmond insisted the money given to Mr Haughey was a loan. He said he had written to Mr Haughey's tax advisers, confirming this. The point could be significant should the Revenue seek to raise gift tax on the amounts.
It emerged yesterday that Mr Conor Haughey was interviewed by Mr John Glackin, the Government-appointed inspector who investigated the May 1990 purchase of the former Johnston Mooney & O'Brien site in Ballsbridge, by Telecom Eireann.
Money given to Mr Conor Haughey in 1990-1991, for the refurbishment of the yacht, the Celtic Mist, came from Freezone, a Channel Islands company which was involved in dealings in relation to the Ballsbridge site prior to its sale to Telecom. A total of £75,546 was paid from the Freezone account in Trustee Savings Bank, Grafton Street, Dublin, towards work on the yacht. Mr Desmond insisted the payment was a loan.
Mr Desmond said he was "proud" he was helping Mr Haughey with his financial difficulties.