The businessman Mr Ulick McEvaddy was the intermediary in an approach last week by the Government to the Fine Gael TD, Mr Jim Mitchell, for the post of vice-president of the European Investment Bank. Mr McEvaddy owns the French villa where the Minister for Finance, Mr McCreevy and the Tanaiste, Ms Harney, holidayed last year.
Mr Mitchell confirmed last night that after Mr Hugh O'Flaherty withdrew his name he was sounded out but had turned down the nomination for the £147,000 position. Mr Mitchell has also stayed in Mr McEvaddy's villa.
A spokesman for the Tanaiste said Ms Harney had established "through a mutual friend" that Mr Mitchell might be interested in the position and she was "positively disposed", but that Ms Harney had not spoken to Mr Mitchell directly. It is understood the contact was made through Mr McEvaddy. Mr Mitchell said he received "a ministerial approach" by an intermediary last Wednesday on whether he would accept the job.
"It was a high-level Government approach. I said I would consider it and it would be a great accolade."
Mr Mitchell last night rejected what he claimed was a suggestion in a a Government spokesman's statement that he had initially shown interest in the job. The spokesman said Mr Mitchell had not been offered the job "but his interest in the job had been established".
Mr Mitchell said he wanted to make it clear that he had not made the initial approach. He said the deciding factor in not taking the job was because he was waiting for a liver transplant.
"I spoke to my doctors about it and asked their opinion. They said I could take the job and work around the illness."
Mr Mitchell said he discussed the approach immediately with his party leader, Mr Bruton.
"He said he would hate to lose me and that the party needed me but he said if I really wanted to take the job he would not stand in my way." He said he had not been offered the job and was told he was one of three names being considered.
"However, as the week went on it was made clear to me that I was the most likely candidate for the job." The TD, who gained the respect of politicians in all parties for his handling of the DIRT inquiry last year, said he informed the intermediary on Monday he did not want the job.
"I do not know when the liver operation will happen or what the recovery period would be. I decided it was not the right time to accept such a position." He said the matter was never discussed by the party front bench and denied rumours that the front bench attempted to block the move.
Meanwhile, a candidate for the EIB position is expected to be put to a meeting of Cabinet today. The front-runner for the position is Mr Michael Tutty, second secretary at the Department of Finance.
The Minister for Finance, Mr McCreevy, will have to consult first with Denmark and Greece, with whom we rotate the position, before formally putting the name to the EIB for consideration.
Yesterday the Taoiseach, Mr Ahern, firmly ruled out a Cabinet reshuffle in the wake of the Hugh O'Flaherty controversy.
He told a special meeting of Fianna Fail ministers and ministers of state that the O'Flaherty row must be put in the past.
The revelation about the approach to Mr Mitchell led observers to draw a parallel to the appointment by Mr Charles Haughey of the then Dublin West Fine Gael TD, Mr Dick Burke, as EU Commissioner. At the time it was hoped that Ms Eileen Lemass would win the vacated seat for Fianna Fail. Mr Haughey was leading a minority Fianna Fail government.
The "stroke" backfired when the Fine Gael candidate, Mr Liam Skelly, won the seat.
However, Mr Mitchell, whose Dail seat is in the Taoiseach's constituency, last night rejected suggestions that this was an attempt at "stroke politics".