The leader of Fine Gael said yesterday he would investigate illegal under-the-counter cash payments of £120,000 made to party staff. Mr Michael Noonan told the parliamentary party he would report back to them on the findings of the investigation, according to the party chairman, Mr Padraic McCormack.
Up to 18 members of the parliamentary party spoke at the meeting. Deputies said afterwards it had been a "forthright" discussion, with one describing it as "a nasty enough kind of meeting".
There were calls for those involved in the making and receiving of the payments to be identified. Many of those in attendance were angry at what had gone on and that they had learned about it in the media.
"We've taken a lot of flak over this and don't even know what is going on in party headquarters. You take it on trust that things are being run properly," said one TD.
Another said there had been support for Mr Noonan, who said the practice had gone on before he was leader. "He said if someone did something illegal they would be shown the gate," he said.
Mr McCormack said the Revenue Commissioners were to report back to the party in two weeks' time in relation to whether or not the matter was now concluded. The Revenue Commissioners maintain that the party's tax compliance status was under inquiry before the voluntary disclosure by the party. However, the party's advisers disagree with the Revenue's contention and have advised that, as all tax, interest and negotiated penalties have been paid in full, the party has no outstanding tax liability.
Mr McCormack said Mr Noonan had outlined the amount totalling £57,731, with £50,492 in interest and £2,887 in penalties. The Revenue Commissioners, he said, had been paid £110,110 on the basis of full voluntary disclosure. Payments were completed on June 3rd, 1999.
There was speculation in Leinster House last night that Fine Gael will today move the writ for the Tipperary South by-election. Such a move would pave the way for Mr Noonan's first electoral outing as party leader on June 7th, coinciding with three referendums.