Haughey queried about Lenihan money

The Moriarty tribunal has questioned claims made by the former Taoiseach, Mr Charles Haughey, about money raised for the medical…

The Moriarty tribunal has questioned claims made by the former Taoiseach, Mr Charles Haughey, about money raised for the medical expenses of the late Mr Brian Lenihan.

It is to examine the ultimate use of £140,000 lodged to an account from which payments for Mr Lenihan's treatment were made. The tribunal has established that another sum of £82,528 from the same account was used to pay for his liver transplant.

In a statement to the media in July, Mr Haughey said that in June 1989 a cheque for £20,000 from Irish Permanent meant for the Lenihan fund was "inadvertently" lodged to an account of Celtic Helicopters, the firm run by his son, Ciaran. The cheque was lodged with another Irish Permanent cheque for £10,000 which was a contribution to Mr Haughey's political expenses.

Mr Haughey said the mistake was noticed and a withdrawal of £30,000 made on the same date as the lodgement. This £30,000 was subsequently lodged to the Fianna Fail party leader's account, he said, the account where donations to the Lenihan fund were being deposited.

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However, counsel for the tribunal, Mr John Coughlan SC, said yesterday the evidence available indicated that the Celtic Helicopters cheque was not lodged to the party leader's account. Evidence was heard that the cheque was, most likely, cashed at the AIB Baggot Street branch where the account was held.

Mr Coughlan said the tribunal is seeking to establish how much of £220,000 lodged to the account in 1989 was intended for Mr Lenihan's medical expenses. The tribunal has identified £82,528 which was withdrawn from the account between June 1989 and February 1991 and used to pay Mr Lenihan's expenses. It is now seeking to establish how much of the remaining £140,000, if any, may have been meant for the medical fund.

Mr Haughey was involved in fund-raising for Mr Lenihan, and lodged donations he received in the Fianna Fail party leader's account. The account was for the allowance paid by the Exchequer to Mr Haughey during his years as party leader. In 1989, £220,000 more than the allowance paid by the Exchequer to Fianna Fail was lodged to the account.

The VHI gave £57,247 in a special grant to pay for treatment received by Mr Lenihan.

Mr Coughlan revealed that £8,332 was withdrawn from the party leader's account in February 1991 to buy a draft in French francs made out to Charvet, a firm of shirt-makers in Paris. In September another £7,500 was used for the same reason.

The tribunal also heard that Mr John Ellis, Fianna Fail TD for Sligo-Leitrim, was twice rescued from possible bankruptcy proceedings by Mr Haughey. Deputies who are declared bankrupt automatically lose their seats, and Mr Haughey was concerned his government might fall. Mr Ellis was given £12,400 in December 1989 and £13,600 in March 1990.

Colm Keena

Colm Keena

Colm Keena is an Irish Times journalist. He was previously legal-affairs correspondent and public-affairs correspondent