BERTIE AHERNS PROBLEMS
ADMISSION OF UNDECLARED PAYMENTS
Ahern was criticised by the Moriarty Tribunal for signing blank cheques for the then Taoiseach Charles Haughey, without asking what those cheques were for. Ahern told the tribunal that a policy of signing blank cheques was used on the Fianna Fáil party leader's account for reasons of "administrative convenience". In September 2006 The Irish Times printed claims allegedly leaked from The Mahon Tribunal that Ahern had received money from a millionaire businessman while Minister for Finance in 1993.
The editor of The Irish Times defended the publication as being in the public interest at a hearing of the tribunal, saying that it was not a party to the Supreme Court case which restrained the Sunday Business Post from publishing leaked documents. This order was directed against the Sunday Business Post but its interim order purported to restrain all media outlets from publishing confidential material from the inquiry.
Ahern has admitted that he did receive money but said on being interviewed that:
What I got personally in my life, to be frank with you is none of your business. If I got something from somebody as a present or something like that I can use it.
What Ahern said in 1996, while in opposition:
The public are entitled to have an absolute guarantee of the financial probity and integrity of their elected representatives, their officials and above all of Ministers. They need to know that they are under financial obligations to nobody. (Dáil Éireann transcript, December 1996)
This contradiction has been criticised in editorials in both the Irish Independent and The Irish Times
Six days after the payments were publicised, Ahern admitted in a television interview that he had received two payments totalling IR£39,000 (€50,000) in 1993 and 1994. Ahern regarded the money as a loan, but he conceded that no repayments had at that time (September 2006) been made and no interest has been paid. He said that he had attempted to repay it, but that his friends would not accept repayment. He claimed that he had broken no codes - ethical, tax, legal or otherwise.
On 28 November 2007, former NCB managing director Padraic O'Connor at the Mahon Tribunal, "directly contradicted Mr Ahern's claims that long-standing friends gave him a loan just after Christmas 1993."
In the same interview, he also admitted to receiving a payment of £8,000 from a group of 25 businessmen in Manchester on one occasion. He claimed that this money was again unsolicited, that it was a gift and therefore not subject to tax as it had been received when abroad, and that it was paid to him after he gave an after-dinner speech at an ad hoc function. He claimed that the money was given to him as a private citizen, not to him in his then role as Minister for Finance, and that no other payments were received by him after speaking at other similar functions. The Irish Times reported on 30 September 2006 that part of this payment was actually a cheque drawn on NCB Stockbrokers, a large Irish company. A number of his benefactors have received appointments as directors of State boards. Insisting that no favours had been offered or received, Ahern said:
I might have appointed somebody but I appointed them because they were friends, not because of anything they had given me.
Under the Standards in Public Office Commission's rules,
State appointments should be made on the basis of merit, taking into account the skills, qualifications and experience of the person to be appointed.
Members of Dáil Éireann must conduct themselves
in accordance with the provisions and spirit of the Code of Conduct and ensure that their conduct does not bring the integrity of their office or the Dáil into serious disrepute.
In the face of negative publicity, Ahern has repaid the monies advanced to him, with 5% interest totaling €90,000.
On 3 October 2006 Ahern made a 15 minute statement in Dáil Éireann defending his actions in taking loans totalling IR£39,000 (€50,000) from friends in Ireland and £8,000 (€11,800) as a gift from businessmen in Manchester in 1993 and 1994. In his statement he apologised for the distress his actions had brought saying:
The bewilderment caused to the public about recent revelations has been deeply upsetting for me and others near and dear to me. To them, to the Irish people and to this house, I offer my apologies.
'No bank account'
Further questions were raised about IR£50,000 (€63,300) which he had lodged to his bank account in 1994. He claimed this was money he had saved over a substantial period of time (1987–1994) when he had had no active bank account. During this period he was Minister for Labour and subsequently Minister for Finance. He was asked by the leader of the Labour party, Pat Rabbitte whether, in the absence of a bank account, he had kept the money in a sock in the hot-press and by Joe Higgins, the leader of the Socialist Party if he had kept the money in a shoe-box. Ahern replied that he had kept the money in his own possession.
PAYMENT IN RELATION TO HOUSE
On 5 October 2006 further information emerged[30] in the Dáil that Ahern had bought his house in Dublin from Manchester based Irish businessman, Micheál Wall, who was at an event in Manchester in 1994 where the Taoiseach received a payment of £8,000 (€11,800). This caused further tensions within the Government coalition parties.
On 10 October 2006 the Taoiseachagain told the Dáil that it was an error of judgment for him to accept loans and gifts for personal purposes in the early 1990s. Ahern expanded on his apology to the Dáil of the previous week, which he described as unqualified. Ahern said there would now be a change in the ethics law requiring office holders offered a gift from friends to consult the Standards in Public Office Commission and to accept their ruling.
MONEY FROM DEVELOPER
Allegations had been made that he had taken IR£50,000 (€63,300) from a property developer, Owen O'Callaghan, in return for favours at this time. Ahern won a libel action against a Cork businessman, Denis "Starry" O'Brien, defending himself against this allegation.
In March 2007, one of Ahern's Manchester benefactors, Paddy 'The Plasterer' Reilly, was appointed as the Fianna Fáil Director of Elections for Ahern's Dublin Central constituency.
In April 2007, it was alleged in a statement by his former official driver, that Ahern in 1994, while Minister for Finance, took a briefcase full of cash to Manchester. This has been denied by Ahern.
While the payment details initially seemed to damage Ahern's standing, the result of the 2007 general election indicated that the damage was far from lasting. In April 2007, an opinion poll found that nearly half of voters believe Taoiseach Bertie Ahern still has questions to answer over the payments controversy.
[edit]Payment to refurbish property managed by Celia Larkin
In May 2007, it emerged that Ahern's then partner, Celia Larkin, received £30,000 from the businessman Micheál Wall to contribute towards the refurbishment of the house that Ahern was to buy later. Questions for Bertie.
APPEARANCE AT THE MAHON TRIBUNAL
On 13 September 2007, Ahern commenced four days of testimony under oath at the Mahon Tribunal. On 13 September, Ahern admitted that he had not cooperated with the Mahon planning tribunal. Counsel stated that information supplied "did not encompass all of the material questions that had been asked of you" to which Ahern replied "I accept that, yes".On 14 September 2007, inconsistencies in Ahern's statements to the Tribunal emerged, after he changed his story on story on the infamous IR£25,000 dig-outs. On 21 September 2007 Ahern again changed his story and said he couldn't remember key events at the centre of the current controversy.
Tribunal chairman Judge Alan Mahon said there were "significant gaps in the money trail provided by Mr Ahern which "would have made it impossible for the tribunal to follow the trail".
Judge Gerald Keyes accused Mr Ahern of having no recollection of buying stg£30,000 in the early 1990s.
Judge Mary Faherty accused Mr Ahern of giving polar opposite accounts of why he withdrew IR£50,000 from AIB, O'Connell St in January 1995.
On 24 September there were further discrepancies, memory lapses and contradictions to his testimony under oath with Ahern agreeing with the assertions of the Tribunal that there are inconsistencies and contradictions in his statements compared to bank records and the testimony of his then partner Ms Larkin.
Ahern agreed with the Tribunal that; "It cannot be the case that Ms Larkin changed a sterling equivalent of £28,772.90 on that day, if that bank record is accurate, isn't that correct?".
Journalist Vincent Browne has asserted that "Ahern’s numbers game just doesn’t add up".
Again on 20 and 21 December 2007, Ahern spent two further days under questioning by the Mahon tribunal about his finances in the 1990's. In January 2008, it was revealed that Ahern was in discussion with the Revenue Commissioners about his liability for tax on the sums received in Manchester and on his tax clearance status as declared in 2002, before details of the Manchester payments were revealed. Opposition leader Enda Kenny has said that, it is not acceptable to have a Taoiseach who cannot declare compliance with the tax codes.