The Taoiseach has suggested that Mr Jim Mitchell was never a candidate for the vice-presidency of the European Investment Bank, putting himself in direct conflict with the Fine Gael TD's version that he was told he could become the front-runner.
Speaking to reporters in New York last night, Mr Ahern did not confirm or deny that he was aware Mr Mitchell was sounded out about the post. He also insisted Mr McCreevy's position as Minister for Finance was safe despite the O'Flaherty debacle.
The controversy over the EIB appointment had been reopened yesterday after it emerged that the millionaire businessman, Mr Ulick McEvaddy, was the intermediary in the approach to Mr Mitchell for the u £147,000 a year EIB post. Mr McEvaddy owns the villa in the south of France where Ms Harney and Mr McCreevy holidayed last year.
The Taoiseach said he decided who he wanted to get the position the day Mr O'Flaherty withdrew his name - last Monday week - and that that person, known to be Mr Michael Tutty, was approved by Cabinet yesterday.
Mr Ahern's account is in direct conflict with Mr Mitchell's version, which was that it was said to him since last Wednesday - two days after Mr Ahern has indicated he decided in favour of Mr Tutty - that he could become the front-runner for the job were he willing to take it.
Asked if he was aware Mr Mitchell was sounded out, Mr Ahern said "many people" were sounding out candidates, and that "many names" had surfaced.
Asked a second time if he was aware Mr Mitchell was being sounded out, he said: "I heard that there were all kinds of names, and the Minister for Finance discussed names with me but I can tell you this: the name that we put forward was the name we had all agreed on." Asked if he agreed with Mr Mitchell being sounded out, he said: "I don't know what you mean by the sounding out process. Many people were sounding out." Asked if he now believed the original O'Flaherty decision was wrong, he said: "We have had a lot of difficulties over Hugh O'Flaherty, the whole appointment. "It has created for me and all of my colleagues a lot of grief and we are sensible and sane people. We learn from experiences and we'll get on with it and try and do better next time. . .we have made some difficulties over the last few years. . .but whatever happened over the summer is now in the past and we have to get on with our job."
Both the Tanaiste and Mr McCreevy refused yesterday to elaborate on the approach to Mr Mitchell on the basis that a nomination process should be confidential.
It emerged yesterday that Ms Harney did not discuss the approach with all members of her parliamentary party. The Minister of State, Mr Robert Molloy, told The Irish Times that he was not consulted. "You asked me if I was consulted about it and I was not. It was a non-starter anyway. It was never on."
The PD Minister of State, Ms Liz O'Donnell, confirmed last night she had heard Mr Mitchell's name mentioned as a possible contender for the post shortly after Mr O'Flaherty withdrew.
Mr Mitchell told The Irish Times last night that he was made aware by the intermediary on Saturday that Mr McCreevy knew and approved of the approach. He was informed that Mr McCreevy would use the opportunity to discuss the matter with the Taoiseach when they travelled to Amsterdam that evening for the Ireland-Holland World Cup qualifier.
He said he received word from the intermediary on Sunday evening that the Taoiseach supported him for the job.
The Labour Party spokesman on Finance, Mr Derek McDowell, called on the Government to make a full statement surrounding the circumstances of the approach to Mr Mitchell for the EIB job.
Mr McDowell said the role of Mr McEvaddy in the approach, the political relationship between the Tanaiste and Mr McEvaddy, and whether the approach was made with the knowledge and consent of the Government needed to be clarified.