The State's largest media group, Independent Newspapers, would not say yesterday whether it secretly funded Fianna Fail during Mr Charles Haughey's leadership between 1989 and 1992.
A spokesman for Independent Newspapers and another company controlled by Dr Tony O'Reilly, Atlantic Resources, said yesterday that he had "nothing to say" about a newspaper report that the companies made "pick-me-up" contributions to the party of between £30,000 and £50,000, by paying certain bills incurred by the party.
A Fianna Fail spokesman also refused to deny or confirm the Sunday Business Post report. "We never comment on any issues to do with fundraising", he said.
Details of three donations to Fianna Fail by companies associated with Dr O'Reilly have emerged in recent months. In 1989 Rennicks, a subsidiary of Fitzwilton, the industrial holding company now controlled by Dr O'Reilly and his brother-in-law Mr Peter Goulandris, paid a £30,000 contribution to Mr Ray Burke. In 1997 Waterford Wedgwood gave Fianna Fail £30,000 while Arcon International Resources, run by Mr Tony O'Reilly junior, gave £15,000 to the party.
Meanwhile, Fianna Fail faces further severe embarrassment over the revelation that it told the Public Offices Commission of a £11,250 "pick me up" donation - which it was obliged by law to declare - only after the Sunday Times said it would publish details of the payment.
The party admitted last Thursday that this payment was made, by the public relations company Frank Dunlop and Associates, on May 30th, 1997. By law all donations worth over £4,000 made after May 15th last year - including such "pick-me-up" payments - had to be revealed to the Public Offices Commission.
The so called "pick-me-up" system of payments involves donors paying bills incurred by political parties, rather than making direct monetary donations to the parties.
The payment made by Frank Dunlop and Associates - controlled by a former government press secretary, Mr Frank Dunlop - was to a catering company owed money by Fianna Fail for services provided at the Galway races the previous year. The company, Lydon House, had provided catering facilities at a marquee operated by Fianna Fail for fundraising purposes at the races in 1996.
Fianna Fail did not include this payment in its declaration of donations worth over £4,000, made since May 15th 1997, sent to the Public Offices Commission earlier this year. On July 6th, following public controversy over the "pick-me-up" system of donations, the Public Offices Commission asked Fianna Fail if it had omitted to declare any such payments. The party said it had not.
Fianna Fail sources suggested last week that the payment was not declared as the party believed the payment had been made before the deadline. Mr Dunlop had agreed to pay the bill in 1996, but did not receive the invoice until May 8th 1997, and paid it on May 30th.
Mr Dunlop said yesterday that he had paid the catering bill in question - of £10,000 plus £1,250 VAT - but had made no tax claim against it. While it has been suggested that some donors who help political parties by paying some of their bills have wrongly claimed these payments were legitimate business expenses, Mr Dunlop stressed he made no such tax claim.
A Fianna Fail party spokesman said yesterday that there had been an "error" but he refused to explain how the error came about. The issue was now a matter for the Public Offices Commission, he said.
It is not known yet, however, how seriously the Public Offices Commission regards the matter, and whether it accepts Fianna Fail's explanation that a genuine error was made. The penalties which the party faces upon conviction on a charge of failing to make a proper return include up to three years' imprisonment, a £20,000 fine, or both.