The political pressure on the Taoiseach eased last night after he received the qualified backing of Tánaiste Michael McDowell, who described Mr Ahern's acceptance of money from friends in 1993 and 1994 as "an honest error of judgment."
Fine Gael leader Enda Kenny focused on another payment to Mr Ahern by a group of Manchester businessmen and warned that his position could become untenable.
The Tánaiste's statement emerged after a relatively short one-hour meeting of the Progressive Democrats parliamentary party in Leinster House. Saying he had never doubted the Taoiseach's honesty, Mr McDowell urged him to repay with interest the money he had received from friends.
"Based on what the Taoiseach has stated, it is clear to me that the actions of a group of friends in late 1993 and in 1994, in advancing to him monies to assist him in the discharge of liabilities arising from his separation, were ill-advised. Based on what he has stated, it would also appear that these actions were well-intentioned and were not intended by them to have any improper effect or to compromise the Taoiseach in his then role as minister for finance or public representative."
Saying that the Taoiseach should probably have declined such help, even in the difficult personal circumstances he faced in 1993, Mr McDowell added. "However, I think it fair to say in the light of what the Taoiseach has stated that accepting such help was an honest error of judgment and was neither dishonest nor corrupt."
He went on to say that he had had the privilege of working with the Taoiseach as a fellow public representative, as Attorney General, and as Minister over many years and had never had any reason to doubt his financial honesty or to suspect that he had abused his public office for self-enrichment. All the evidence pointed to the contrary.
"I believe, with the Taoiseach, that the payments in question should now be fully refunded with interest. If the donors are reluctant to receive them, they can surrender them to charitable causes," said Mr McDowell.
Responding to questions in the Dáil yesterday Mr Ahern was adamant he had done nothing wrong.
"Never, in all the time I have served in public life, have I taken a bribe or in any way put my personal interest ahead of the public good. I have served this State honestly and I defy anyone to prove otherwise."
He told TDs that the interest on the €50,000 he had received would come to €20,000 but last night Fine Gael finance spokesman Richard Bruton maintained it would be more than that. Basing his calculations on the mortgage interest rate - the cheapest form of money available - he said the Taoiseach would have to repay €105,000 in total.
Fine Gael and Labour also attacked Mr McDowell. Fine Gael accused him of being driven by a determination to keep Fianna Fáil in office for another five-year term rather than being concerned with accountability in high office.
Mr Kenny focused on the Manchester payment which the Taoiseach raised in his TV interview and dealt with again in the Dáil yesterday. Mr Kenny held that, from what the Taoiseach had said in the past two days he had been invited to the function in Manchester in his capacity as minister for finance.
Last night, after Mr McDowell issued his statement, Mr Kenny said: "I am aware of no occasion when a minister of any government was paid to speak at a function. The cabinet handbook which sets the rules in relation to gifts given to ministers makes it clear that gifts above €650 in value must be retained in the minister's department. The handbook also makes it clear that any such gift should be notified to the secretary general to the government as soon as possible. This payment of £8,000 clearly constituted a gift," he said.
"It would appear from the Taoiseach's comments that he accepted €10,000 for this nixer and lodged it to his bank account. This issue is very serious and requires further investigation and explanation by the Taoiseach. The matter will be raised again in the Dáil. If issues like this continue to arise regarding the Taoiseach's actions his position could become untenable," said Mr Kenny.
Green Party chairman John Gormley said Mr McDowell's statement was a serious cop-out. "The gentle admonishment, that this was an 'honest error of judgment', is an insult to the many people who voted for the PDs because they would keep an eye on Fianna Fáil."
