The Garda investigation into alleged money-laundering by republicans claimed its first casualty last night when Mr Phil Flynn resigned his positions as chairman of Bank of Scotland (Ireland), as head of the Government decentralisation implementation committee and as a director of the VHI.
Mr Flynn said he was an "unrepentant republican", but he denied any involvement in money-laundering and said he did not believe that he had been exploited by members of the republican movement.
The former Sinn Féin vice-president and former vice-president of the ICTU came under Government pressure yesterday after it emerged that he had been questioned by the Criminal Assets Bureau about his non-executive directorship of the company at the centre of the Garda investigation. There was no immediate comment on his resignation from the Government last night.
His position as chairman of the decentralisation committee came under threat when the Government said that it was examining his position in the light of the investigation into Chesterton Finance Co Ltd.
His withdrawal from the three positions came only hours after he confirmed that he had a business relationship with the person who was the "principal" in Chesterton, a figure central to the Garda investigation. He told RTÉ that he had made an error of judgment by agreeing to become involved in the company.
Earlier, Mr Flynn told The Irish Times that he had been connected with Chesterton for less than a year. "As far as I'm concerned, the operation is clean."
In a Bank of Scotland (Ireland), statement last night Mr Flynn said: "I am guilty of no wrongdoing, but the bank and I have decided that it is best I step down from my position as non-executive chairman with immediate effect in order to ensure Bank of Scotland (Ireland) is not affected by recent publicity."
