Haughey letter to tribunal denies £1.3m payment

ALLEGATIONS by Mr Ben Dunne that he paid almost £1

ALLEGATIONS by Mr Ben Dunne that he paid almost £1.3 million to Mr Charles Haughey have been contradicted by the former Taoiseach in correspondence with the Dunne payments triibunal.

The inquiry heard yesterday that most of the money was paid through intermediaries into offshore bank accounts, before making its way back to a Dublin bank, Guinness and Mahon, whose joint managing director, the late Mr Des Traynor, was a close friend of Mr Haughey.

The Dunne tribunai also heard that Mr Dunne would say in evidence that he handed to Mr Haughey in 1991 bank drafts worth £210,000 sterling made out to fictitious names.

Mr Dunne began detailing the payments in evidence yesterday and will continue today.

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The payments were allegedly made between 1987 and 1991, when Mr Haughey was Taoiseach and was said to be in serious financial difficulties. Explaining why he made the payments yesterday, Mr Dunne said: "When I'd hear of someone's financial problems I'd say, `Yes, sure'".

But Mr Haughey wrote to the tribunal in March, saying that neither he nor any relative received funds from Mr Duane other than smaller amounts acknowledged to Judge Gerard Buchanan in an earlier investigation.

Judge Buchanan was informed that Mr Haughey's wife, Mrs Maureen Haughey, received £20,000 from Mr Dunne as a contribution to election expenses for her husband or her son, Mr Sean Haughey; Mr Haughey's eldest son, Mr Ciaran Haughey, got £10,000 from Mr Dunne for helicopter services; and Mr Haughey's brother, Father Eoghan Haughey, got £2,000 to say Masses.

Mr Haughey had previously denied receiving more than £1 million from Mr Dunne to solicitors acting for the Dunnes Settlement Trust, who wrote to Mr Haughey in 1994 seeking the return of the money allegedly paid to him by Mr Ben Dunne. Mr Haughey enclosed copies of this correspondence in his communication to the tribunal last month.

The tribunal heard yesterday that Mr Duane paid close to £1.3 million after a request for help on behalf of Mr Haughey from Mr Traynor, who died in 1994. Mr Traynor had asked Mr Dunne's adviser, Mr Noel Fox, if the then supermarket head would become one of several contributors to raise £700,000 to £800,000 to

Mr Haughey.

Mr Dunne told the tribunal he was worried that the involvement of a number of people would increase the risk of the matter becoming public. He decided that "for confidentiality purposes I'd do it myself for Mr Haughey".

Mr Dunne recalled he had said at the time: "I think Haughey is making a huge mistake trying to get six or seven people together. Christ picked 12 apostles and one of them crucified him."

Mr Haughey is considered likely to appear at the tribunal in the future to challenge Mr Dunne's evidence but it is not known when this will happen. Last week, the tribunal was told, he consented to an order for discovery of documents relating to alleged payments. The tribunal has also agreed to provide Mr Haughey with a copy of any statements or evidence relating to him.

Mr Denis McCullough SC, for the tribunal, also gave details of extensive political donations made by Mr Dunne. These included close to £200,000 to Fine Gael, some of it to Mr Alan Dukes in Barberstown Castle while he was party leader, the rest agreed at a meeting with the Taoiseach Mr Bruton, arranged by Mr Michael Lowry, in Mr Dunne's house.

He also responded to a request from Mr Dick Spring to help fund a leisure park in Tralee by giving a £50,000 cheque made out to the company involved, which was delivered to Mr Spring by Mr Dunne's driver.