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Haughey issues statement on Lenihan funds

The former Taoiseach, Charles Haughey, has said funds raised for Brian Lenihan's liver transplant operation were properly applied. The Moriarty Tribunal earlier heard that two cheques from the Irish Permanent Building Society made out to Mr Haughey in 1989 ended up in the bank account of Celtic Helicopters, a company run by Mr Haughey's son, Ciarán. One of the cheques had been intended for Mr Lenihan. In a statement, Mr Haughey said a full statement on how the funds were used will be made later when his legal team have access to the records.

The Moriarty Tribunal heard that two cheques from the Irish Permanent Building Society made out to Mr Haughey ended up in the bank account of Celtic Helicopters in June 1989. Directors of the Society have said in statements that one cheque for £10,000 was a political payment to Mr Haughey and that the second for £20,000 was intended for the late Brian Lenihan as he was undergoing a liver transplant at the time. In a statement to the Tribunal, Enda Hogan, a director of the Society said that at the time of Mr Lenihan's illness it was felt they should make a contribution. Their cheque stubs for the £10,000 payment was called 'sub' and the second for £20,000 was signed 'B Lenihan'. One of Charles Haughey's private secretaries told the Tribunal today how she paid the medical bills for Brian Lenihan's liver transplant treatment in 1989. Mr Lenihan's medical insurance was not adequate to cover the costs at the time. Eileen Foy said Mr Haughey was given several cheques towards Mr Lenihan's expenses, some in large amounts.

Earlier, the tribunal heard that An Taoiseach, Bertie Ahern, co-signed a cheque for £25,000 cash in June 1989 which was drawn on the party leader's account and made its way into an account which was run for the benefit of Charles Haughey. The cheque which was dated June 16 1989 was made out to cash, and was signed by the then chief whip, Bertie Ahern, and the then Taoiseach, Charles Haughey. It was drawn on the party leaders account in the Allied Irish Bank in Baggot Street which was used to assist party leaders by providing funds for salaries and expenses of party officials.

Tribunal lawyers said this morning that the money appears to have ended up in an Amiens account in Guinness and Mahon bank through which large sums of money were channelled to Charles Haughey. John Coughlan for the Tribunal said that Bertie Ahern had provided a statement to the tribunal about the account. Mr Ahern said that he had no recollection of ever signing a cheque made out to cash in any substantial amount. Mr Ahern said the likelihood was that he had signed a series of blank cheques in advance of the 1989 general election. He said that the party had a practice of pre-signing blank cheques for administrative convenience. He agreed that it was his signature on the cheque for £25,000, but the rest of the writing was not his. The Tribunal heard that no records of the party leader's account were now available from Mr Haughey's time as leader.