At the Moriarty Tribunal, Mr Michael Smurfit retook the stand today to answer further questions about a payment of £60,000 he made in 1989. He had already told the Tribunal that it was a political donation to Fianna Fáil. On the direction of Des Traynor, Mr Haughey's financial adviser, he paid into Ansbacher Cayman bank in London. Mr Smurfit earlier told the Tribunal that he was first contacted by Mr Haughey to give a donation to Fianna Fail and that he subsequently contacted him about it.
Mr Smurfit reaffirmed his original statement that this is what happened. He was asked to comment on Mr Haughey's evidence that "Mr Traynor never did nor never would seek a political contribution for Fianna Fáil" and therefore if Mr Traynor was involved it had to have been for Mr Haughey's personal finances. Mr Smurfit said that this was incorrect.
Counsel for the Tribunal, John Healy, pointed out that all other Fianna Fáil donations made on behalf of Mr Smurfit had been done through his companies or foundation and that this was the only payment that had taken such a "strange route". Mr Smurfit once again denied that the "clouding" of the payment suggested it was a personal payment to Mr Haughey.
The former Taoiseach Charles Haughey stated to the Moriarty Tribunal in private session last February that he "never lifted a finger" to direct Government business towards Celtic Helicopters. The company was owned by his son Ciarán. He described the company, which was established in the mid-1980s, as a small, minuscule and very often fledgling operation who had to compete for a share in the market place with other operators. The main one was Irish Helicopters which was State owned.
"When the air and sea rescue contract was set out to tender Celtic helicopters never tendered for it because they were unlikely to get it and they knew that, " the former Taoiseach stated in evidence. Celtic Helicopters received their initial capital by bank loan from Guinness and Mahon and an £80,000 cash injection from outside investors.
Earlier, Charles Haughey told the Moriarty Tribunal why he was reimbursed from the leader's account for functions held at his own home, Abbeville. The former Taoiseach said that he was paid because his home was used for "State purposes". He described his residence as a "major centre of Government activity, foreign affairs, diplomacy, party activity and business".
Mr Haughey described how he vetoed a plan for a Taoiseach's residence in the Phoenix Park when he came into office for the first time, in 1979. It was decided to use his own home at Abbeville for State purposes. He said that delegations from Northern Ireland were received there, to allow meetings in privacy and out of the glare of the media.
As a result of the use of Abbeville in this way, Mr Haughey said that it was appropriate that State funds would be used to repay him for its use. He thought Fianna Fáil would have agreed that he should be reimbursed.
Mr Haughey gave these details in the context of explaining how the party leader's allowance account was managed. He said that a broad balance was kept between money that was taken out of it for his personal expenditure and the amount he had put into it. He said that, on a regular basis, his secretary Ms Eileen Foy would say, "You owe us," or "I owe you".
Mr Haughey also explained why a total of £26,000 was given to the Sligo Leitrim TD, John Ellis, out of the leader's allowance account to save him from bankruptcy. Mr Haughey said that he remembered his secretary, Catherine Butler, receiving a phone call telling her that Mr Ellis was on the verge of bankruptcy.
Mr Haughey said that, since Mr Ellis risked losing his seat in the Dáil and Fianna Fáil would have been down a vote, it was "panic stations". He said that it was seen as a crisis situation and he agreed that £12,400 would be paid to save the Sligo Leitrim TD from bankruptcy in December 1989. He later agreed to pay a further £13,600 in March 1990 after a further threat of bankruptcy. Mr Haughey said that he believed that these payments were made as loans. Mr Haughey gave this evidence during private sessions.
