Companies associated with Dr Tony O'Reilly departed from their established practice of donating money to Fianna Fail at election times by giving £30,000 to Mr Ray Burke in 1989. Until then, the contribution from the companies had come through a legal associate of his, Mr James Cawley, who was a member of the Fianna Fail general election fund-raising committee.

Mr Cawley was a partner with Dr O'Reilly in the firm of Cawley, Sheerin, Wynne, solicitors, until they parted company some years ago. He was also a member of the board of Independent Newspapers plc.

Sources close to Fianna Fail's fund-raising committee have confirmed to The Irish Times that it was the practice for the companies to source their donations to the Fianna Fail election fund through two channels - Fitzwilton plc or Atlantic Resources.

The donations usually amounted to between £25,000 and £30,000.

Shortly after the then Taoiseach, Mr Charles Haughey, called the general election on May 25th, 1989, Mr Paul Kavanagh, head of Fianna Fail's fund-raising committee, set out to bring in political donations from the party's top subscribers. There were up to 10 members on the committee, which had been revamped by Mr Haughey after his long battle to remove Senator Des Hanafin as secretary some years earlier.

Apart from Mr Kavanagh, who was European president of Stream International, they included Mr Denis McCarthy, head of Odearest; Mr Conor Crowley, a senior partner with accountants Stokes, Kennedy, Crowley; Ms Lee Flynn, wife of the builder John Flynn; the late Mr Peter Hanley; Mr Noel Hanlon, chairman of Aer Rianta; Ms Emer Haughey, Mr Haughey's daughter; and Mr Cawley.

The modus operandi of the committee, according to informed sources, was that each member would pursue a few companies or known subscribers to Fianna Fail to receive donations and pass them on to Mr Kavanagh.

Mr Cawley was the usual conduit for donations which came through Atlantic and Fitzwilton.

Mr Cawley got a message by telephone from Mr James McCarthy, a director of Independent Newspapers and Fitzwilton, to say that the subscription was being looked after. It would be done through Mr Robin Rennicks, who was friendly with Mr Ray Burke, who was then outgoing minister for industry, commerce and communications.

The Fianna Fail fund-raising committee was surprised. Members had never heard of Rennicks Manufacturing Ltd, which had become a wholly-owned subsidiary of Fitzwilton some time earlier. This was the first time that Mr Cawley was not the conduit for the Fitzwilton/Atlantic Resources contribution.

It was the first time that the money was not directed to the Fianna Fail election fund. It was also the first time that the donation was paid through a minister.

When the political contribution did not come to the Fianna Fail fund-raising committee, Mr Kavanagh contacted Mr Burke to look for the cheque. Mr Burke sent in £10,000, accompanied by a Rennicks compliments slip. "Ray Burke" and "Robin Rennicks" were hand-written on it.

The committee was perturbed at receiving only £10,000 when the normal contribution was in the region of £25,000 to £30,000. Mr Kavanagh contacted Mr Burke again to ask him for the remainder of the money.

Mr Burke reported that he had been given to understand that it was at his discretion how he spent it. His constituency needed £20,000. They still had debts from the previous election to clear off.

Fianna Fail has forwarded to the Flood tribunal the official party receipt, made out in the name of Rennicks, acknowledging receipt of a sum of £10,000.

Receipt No. 4170 is dated "9 Mmh, 1989", stamped "General Election Fund" and signed "Catal O hEocaid, Eoghan Mac Gearailt and Padraic O Floinn", uachtarain and cisteoiri oinigh, Fianna Fail, respectively.

Mr Burke told the Dail last September that £30,000 was the largest contribution he had received "during any election campaign, either before or since 1989". It was, he said, "an exceptional contribution". He was referring to the cash payment of £30,000 from Joseph Murphy Structural Engineering.

The Taoiseach, Mr Ahern, told the Dail on May 28th that he was appraised in the latter half of March this year of the Rennicks contribution.

"Up to then, I had been given to understand that the £10,000 received by Fianna Fail from Ray Burke in 1989 was drawn from a contribution he had received from Joseph Murphy Structural Engineering and, even bearing in mind that he would certainly have received other smaller contributions, it was reasonable to presume that, in the main, it came from that source", he stated.

Mr Ahern concluded: "I was more than surprised when we discovered in March that another contribution of £30,000 had been made."