The Taoiseach has described as "inappropriate" the relationship his former special adviser, Mr Paddy Duffy, had with the public affairs company that advised NTL, which bought Cablelink last month.
Answering a series of Dail questions yesterday, Mr Ahern suggested that Mr Duffy's non-executive directorship of Dillon Consultants was contrary to ethics legislation. "On any reasonable basis," he said, the Ethics in Public Office Act would preclude an adviser "becoming involved, even in a non-executive capacity, in any public affairs consultancy business".
He paid tribute to Mr Duffy's service, dedication and loyalty in the past and to his rapid decision to resign when it emerged he was on the board of Dillon's.
However, he also said that when asked, Mr Duffy had not given "the full facts" of his relationship with Dillon Consultants to the Taoiseach and the Minister for Public Enterprise, Ms O'Rourke.
He said Mr Duffy had acknowledged this, and during bad-tempered Dail exchanges yesterday Mr Ahern accused the Fine Gael leader Mr Bruton of "muck slinging".
"Unfortunate mistakes, misunderstandings and errors of judgement" had contributed to the events leading to Mr Duffy's resignation, he said.
Mr Duffy resigned on June 4th after The Irish Times revealed he was a non-executive director of Dillon Consultants, a public affairs company which advised NTL on its successful bid to buy Cablelink from Telecom Eireann and RTE. Mr Duffy and Dillon's have said he played no role in advising NTL on the Cablelink bid.
Mr Ahern said the first he knew of Mr Duffy being a non-executive director of Dillon's was when he read it in The Irish Times.
The most serious aspect of the case, he said, was that "when the story subsequently broke in The Irish Times, it created prima facie the impression that Mr Duffy had not been open about previous contacts, future plans and contractual arrangements, and that he had placed the Minister in a false and invidious position".
He said Mr Duffy had not given the "full facts" concerning his relationship with Dillon Consultants.
In late April Mr Ahern asked Mr Duffy about a suggestion that he was on the board of Dillons. Mr Duffy told Mr Ahern he knew Mr Paul Dillon, was considering future involvement with them but had no connection with Dillon's or NTL. He also told Ms O'Rourke he had no connection with Dillon's or NTL.
The problem that had arisen, he said, "was that a special adviser was arguably in the process of forming a relationship with a private company that would be important for his future career after leaving the public service". The fact that that company was - "most probably due to a serious misunderstanding" - already advertising Mr Duffy as an asset "underlines the dangers of forming even a tentative relationship with a commercial company dealing with the State prior to leaving the public service".
Mr Ahern said it was important that advice given to the Government should be "financially disinterested". If there was any financial interest it should be "clear and transparent, so that there is no undue or improper influence".
He said there should be debate on whether there should be some restriction on people who left public employment if their special knowledge could give "an inside track" to companies in the private sector.
Mr Ahern said he appreciated "the service, the loyalty, dedication and commitment Mr Duffy gave on many occasions not just to me or my party, but also to the public interest".
He said he regretted losing a valued colleague. "I wish Mr Duffy and his family well. Recognising the potential for damaging controversy he acted very promptly in offering his resignation, which I reluctantly accepted."