Saudi diplomat gave £50,000 to Haughey

At the outset of this week's evidence the Moriarty tribunal heard of accounts held by Mr Charles Haughey through which more than…

At the outset of this week's evidence the Moriarty tribunal heard of accounts held by Mr Charles Haughey through which more than £1.5 million passed in the years 1979 to 1987. Yesterday mention was made in passing of the controversial jewelled dagger and diamond necklace Mr and Mrs Haughey received in 1988.

The former minister for health, Dr John O'Connell, gave evidence concerning a £50,000 payment to Mr Haughey in February 1985 from a Mr Mahmoud Fustok. Mr Fustok is a Saudi diplomat and brother-in-law of Saudi Crown Prince Abdullah. The Saudi diplomat used to make regular trips to the Republic to attend the bloodstock sales at Goffs.

Dr O'Connell, who gave evidence wearing headphones because he has difficulty hearing, said he first met Mr Fustok in 1979 and the two men became friendly. Dr O'Connell introduced Mr Fustok to the Haughey family in the early 1980s. It was as a result of Dr O'Connell's suggestion to Mr Haughey that Crown Prince Abdullah was later invited to visit the Republic.

The visit took place in June 1988 and it afterwards emerged that members of the government were given gifts of diamond daggers.

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Mrs Haughey was given a diamond necklace reportedly worth £250,000, though during a Dail debate concerning the gifts one year later Mr Haughey said the value of the necklace had been "widely exaggerated".

The then Taoiseach rejected suggestions that he introduce legislation governing the receipt of gifts by members of the government. Given what we now know about him, that position is not surprising.

In 1985 when he was attending a social function in London, Dr O'Connell said, he was asked by Mr Fustok to convey £50,000 to Mr Haughey. He did so even though he wasn't told what the payment was for. Mr Fustok has told the tribunal, by way of a letter, that the £50,000 was payment for a horse.

Dr O'Connell said Mr Fustok was extremely wealthy and owned just under 1,000 horses at one stage.

The Saudi businessman was once involved in an attempt to corner the world silver market, he said. The attempt failed and Mr Fustok lost £176 million.

When Dr O'Connell came back to Dublin from London in 1985 and rang Mr Haughey to tell him what Mr Fustok had asked him to do, the then leader of the opposition told him to make the cheque out to cash. Dr O'Connell did this, writing out a cheque on one of his own accounts. Exactly £50,000 was lodged into Dr O'Connell's account a few days later, though how this came about is not clear.

The £50,000 was lodged to an account in the name of Amiens Securities in Guinness & Mahon bank. This is one of the accounts through which money for the benefit of Mr Haughey regularly passed during the 1980s.

Evidence was heard yesterday concerning contributions from the late Mr P.V. Doyle to Mr Haughey. Mr Doyle took out loans in 1983 and 1985 with Guinness & Mahon bank which were used for Mr Haughey's benefit. The total involved was £170,000. The evidence shows that some if not most of the interest payments were also met by Mr Doyle, and the total paid by him or his estate may be as much as £300,000.

Mr George Carville, a former senior executive with the Doyle Group, said he was told in passing by Mr Doyle that he was facilitating Mr Haughey in relation to a loan, but that Mr Haughey would repay the loan and the interest.

When Mr Doyle died in 1988 Mr Haughey's financial adviser, the late Mr Des Traynor, contacted Mr Carville and asked for a meeting. Mr Carville said the meeting was attended by Mr Doyle's widow, Margaret, and others.

Everyone was still in shock, Mr Carville said, because of the death just one month earlier of Mr Doyle. Mr Traynor told the group there wasn't "a hope in hell" that Mr Haughey would settle the outstanding debt with Guinness & Mahon. Mr Doyle's estate paid £150,230 to settle the loan accounts. Mr Traynor later served as a director for the Doyle group. Mr Carville said he was not surprised to learn Mr Doyle had given financial support to Mr Haughey.