Gardaí in Letterkenny have said they are at an advanced stage of an investigation into an alleged attempt by a developer to make a cash payment to Donegal North East TD Niall Blaney over a planning matter.
Mr Blaney said last May that a developer had left a "brown envelope" in his offices. While the sum involved has not been released, it is believed to have been around €2,000.
The money was returned to the developer, who has been behind a number of housing projects in Co Donegal.
Mr Blaney said he had immediately passed on the relevant information to the chief superintendent of the Garda in Donegal and to the chairman of the Dáil Public Accounts Committee.
A spokesman for Letterkenny gardaí confirmed yesterday that their investigation was at an advanced stage.
"We are progressing very well with the investigation and are not looking to speak to anyone else in relation to the matter," the spokesman said.
The spokesman would not go in to any other detail of the investigation for operational reasons. However, it is believed that Mr Blaney, members of his family, and others involved in the investigation have made statements to gardaí.
Mr Blaney said his solicitor had advised him not to comment on the matter.
In a statement issued through Letterkenny-based solicitor Dessie Shiels last May, the Fianna Fáil TD condemned the attempt to make the payment regarding a planning matter in the Milford Electoral Area.
"The factual circumstances of this matter are as follows: The developer in question last week arranged for an envelope to be left with a third party to be passed to my client," the statement said.
"My client was contacted by the developer who queried whether my client had received the envelope. Upon the envelope being opened a cash sum was found to be contained therein.
"My client immediately contacted me to instruct me to return the cash sum to the developer. The cash sum has been returned by me to the developer as Deputy Blaney's solicitor."