It is alleged that Mr Callely claimed expenses using mobile phone receipts from a company that had ceased trading.
In a statement this evening, the senator said that he submitted to the Houses of the Oireachtas in November 2007 the four receipts to cover the period of January 2002 to July 2006, totalling €1,907.64.
Mr Callely said he did not know how these receipts were issued by a company that had ceased trading and had no reason at the time to believe that they were not in order.
He said he received the receipts in good faith and submitted them in good faith for vouching purposes in the belief that they were correct.
The statement said Mr Callely had 'refunded all monies to the Leinster House authorities in respect of the said invoices concerning the amount paid on mobile phone expenses (Total €2,879.45 ).'
Earlier this week, the senator was suspended from membership of Fianna Fáil, pending an internal inquiry into allegations.
Green Party TD Paul Gogarty lodged an official complaint with the gardaí about the expense claims.
The senator's statement indicates that recent media coverage has caused his family considerable distress, and while he regrets the difficulties his expense claims have caused, he has contacted his legal advisors to assist the investigation and vindicate his position.
