The Taoiseach has confirmed he has issued defamation proceedings against the businessman who alleged last April that he had paid Mr Ahern £50,000 in 1989. Mr Ahern said yesterday he had is sued the proceedings against Mr Denis O'Brien, who claimed he gave Mr Ahern the money in the car-park of a Dublin hotel on all-Ireland final day in 1989.
Mr O'Brien alleged he had given the money on behalf of Cork property developer Mr Owen O'Callaghan. Mr Ahern and Mr O'Callaghan vehemently denied the claims, which were made by Mr O'Brien to the Flood tribunal and subsequently published in the Sunday Business Post.
Solicitors for Mr Ahern wrote to Mr O'Brien demanding a full retraction and an apology. However Mr O'Brien has said he stands over his allegations.
"As no retraction and apology was received," Mr Ahern said yesterday, "I had no other option but to institute defamation proceedings to vindicate my good name and reputation. These proceedings were issued on August 18th, 2000, solely for that purpose, and were served on Mr O'Brien's solicitors. I trust the case will come on for hearing quickly so that the truth can be established without delay.
"These allegations were also made to the Flood tribunal with which I fully co-operated by filing a detailed statement and furnishing all documents that they sought from me."
There is speculation that the tribunal does not see Mr O'Brien's allegations as meriting an airing at a public tribunal session.