Lenihan donation was lodged as payment for Haughey flying hours

The Moriarty Tribunal has been hearing evidence of the relationship between the head of one of the country's largest building societies and Charles Haughey. Dr Edmund Farrell, former chief executive of the Irish Permanent, gave Mr Haughey a total of £40,000 in two years. Half of that was intended as political donations and the other half towards the late Brian Lenihan's medical expenses. All of the money ended up going through the bank account of Celtic Helicopters, and was taken out a few weeks later.

In the 1980's and early 90's Charles Haughey and Edmund Farrell met on several occasions. They would have lunch together in the Taoiseach's offices two or three times a year, but according to Dr Farrell they would rarely discuss business or politics. In 1985 Mr Haughey was a guest of the Building Society at Barry McGuigan's world title boxing fight. Early in 1989, an election year, both men were at promotion in the Berkley Court Hotel for the Financial Services Centre. When the bulk of the guests dispersed Mr Haughey approached Edmund Farrell and said the "campaign fund is low". Dr Farrell took this to mean the Fianna Fáil fund, but Mr Haughey said he was speaking of his own personal fund. He was later given a cheque from the Building Society for £10,000. Asked how he arrived at a figure of £10,000 Dr Farrell said "Mr Haughey was a man of integrity and the Prime Minister of the country, to send down £500 would be bordering on the absurd." Dr Farrell then admitted that he never received such personal requests for money from any other politician.

During his evidence today, Dr Farrell said that around this time he was asked by Mr Haughey to come to his office, and Mr Haughey told him he was setting up a fund for his sick colleague and wanted the Irish Permanent to make a donation. Mr Haughey said that he was only approaching a small number of people to contribute. A cheque for £20,000 for this purpose was later given to Mr Haughey. Dr Farrell said that he does not remember if he received an acknowledgement.

Both of these cheques went to the bank account of Celtic Helicopters. John Barnicle, a partner in the firm, told the tribunal today that he thinks this money was an advanced payment for flying hours. He assumes this arrangement was cancelled a few weeks later and the money paid back to Mr Haughey. He said the company was not looking for loans at the time, and there could have been no other reason why the cheque was lodged.

The Tribunal has also uncovered a further payment of £10,000 from Irish Permanent to Mr Haughey given in October of 1990. At the same time Fianna Fáil was given a separate donation of £25,000, which did end up in party funds. As for the £10,000 cheque, it again went to the Celtic Helicopters account in Dublin airport. And once again the records show it was transferred out of that account a few weeks later.