Senior Fianna Fáil figures are in conflict over how Mr Dermot O'Leary was reappointed to the Aer Rianta board in 1997.
Former taoiseach Mr Albert Reynolds yesterday strongly denied that he had any role in the reappointment of Mr O'Leary, now at the centre of a controversy for arranging for Mr Liam Lawlor and his wife, Hazel, to pass through Dublin Airport away from the waiting media last month.
It is understood that the Minister for Public Enterprise, Ms O'Rourke, also denies that his appointment was at her initiative. Rather, it was made at the behest of the Taoiseach, Mr Ahern.
One senior Government source claims the decision was made to appease Mr Reynolds, who had recently failed to win the Fianna Fáil nomination for the presidential election.
"It was a Fianna Fáil 'keep Albert happy' decision. The appointment was made just after the presidential election. It was done to keep him on-side and in the Dáil for votes."
But Mr Reynolds told The Irish Times yesterday he had nothing to do with Mr O'Leary being kept on the Aer Rianta board. "There is not a scintilla of truth in any suggestion that I was involved in that reappointment, either directly or indirectly," he said. "I was three years out of Government at that stage."
Mr Reynolds said he did not remember the circumstances surrounding Mr O'Leary's initial appointment to the State board in October 1992, since it was 10 years ago. At that time, the minister responsible for the sector was Ms Máire Geogheghan-Quinn in the Department of Tourism, Transport and Communications. "I presume he would have been appointed in the normal way," said Mr Reynolds.
Ms O'Rourke is to meet the Aer Rianta chairman, Mr Noel Hanlon, tomorrow to discuss the special arrangements made for the Lawlors. Mr O'Leary, a member of the Fianna Fáil national executive, has said he has no intention of resigning.
The Aer Rianta board is not due to meet until the end of the month. Government sources are emphasising that this matter must be given due process. Mr O'Leary is suing the State over the manner in which he was dropped from the board of CIÉ by the former minister, Mr Michael Lowry.
Ms O'Rourke has said she wished to consult with Mr Ahern, the Minister for Finance, Mr McCreevy, and the Tánaiste, Ms Harney, on the issue. Ms Harney does not return from her honeymoon in Kenya until the end of the week.