Burke's one statement on donation has failed to reassure the Opposition

What is all this about?

What is all this about?

During July and August several newspapers reported that Mr Burke had received financial contributions from construction companies. In particular the Sunday Times reported he had received £80,000 - £40,000 from Joseph Murphy Structural Engineering (JMSE) and £40,000 from Bovale Developments Ltd. This money had been handed over at a meeting in Mr Burke's home attended by five people in 1989, the newspaper said.

What's the evidence?

The word of Mr James Gogarty, a former executive with JMSE who fell out with his former employers. He was present at the 1989 meeting in Mr Burke's home but his account of it, given above, is contradicted by Mr Michael Bailey of Bovale, who was also present, and by Mr Burke himself.

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Both say that £30,000 was handed over by JMSE and not £40,000, and that nothing was handed over by Bovale.

Mr Gogarty has not yet signed a statement giving his account of the meeting. The Garda has offered him qualified immunity from prosecution should he sign a statement. Mr Gogarty is understood to have other concerns he wants addressed by the Garda before signing.

What does Mr Burke have to say himself?

Mr Burke said nothing publicly on the matter for several weeks despite the allegations appearing in the media. Fianna Fail, however, gave Mr Burke's version of events which stated that this was an unsolicited political contribution of £30,000, of which £10,000 was handed over to Fianna Fail headquarters.

He finally issued a statement on August 7th but has declined to elaborate on it or be interviewed on the matter.

His statement said he has been the target "of a vicious campaign of rumour and innuendo" for two years, and that this campaign had intensified since his appointment as Minister for Foreign Affairs. In the statement, reported in the national media at the time, he denied reports that he had received £80,000, insisting the figure was £30,000. He denied the allegation that he had received £40,000 from Mr Bailey. He denied there were five people present when the money was handed over, saying there were three.

Mr Gogarty was the only JMSE executive present, he said, contrary to reports that there were two or three.

Mr Burke said no favours were sought or given, that he had never made any representations on behalf of JMSE or Bovale or Mr Gogarty either before or after receiving the money.

"I am taking the opportunity to state unequivocally that I have done nothing illegal, unethical or improper. Indeed, I find myself the victim of a campaign of calumny and abuse", he said.

Finally he warned he would take "all necessary steps to vindicate my good name and reputation" should "any further untruths" be published about him.

Has he taken any such "necessary steps?"

Yes. He has issued defamation proceedings against Mr Gogarty following the publication in the Sunday Business Post on August 10th of an interview with Mr Gogarty during which he gave his version of events.

Has Fianna Fail done anything about this?

Yes. Mr Dermot Ahern, as Fianna Fail Chief Whip, was appointed by Mr Bertie Ahern to investigate the matter and travelled to London to speak to individuals involved. Saying he was satisfied that nothing improper had occurred, Mr Bertie Ahern appointed Mr Burke as Minister for Foreign Affairs.

"I investigated this comprehensively", Mr Bertie Ahern said in an RTE interview, "and there is no question in my mind that what was a political donation under the law . . . that there were no favours asked or done in the context of it. I am quite satisfied with the matter."

Are the Opposition parties happy then?

No. Fine Gael and Labour issued statements after Mr Burke's statement of August 7th asking a number of questions. Fine Gael asked:

Does Mr Burke know why Mr Gogarty of JMSE "decided suddenly during the course of the 1989 general election campaign to visit Mr Burke's house and make an exceptionally substantial political contribution?"

What explanation did Mr Gogarty give for the donation?

Was Fianna Fail told from whom the donation had come?

Why did Mr Burke not clarify the situation regarding the £10,000 which Fianna Fail sources have said was paid over to party headquarters?

Did the Taoiseach, in asking Mr Dermot Ahern to investigate the matter, seek to find out how much of the money was spent on election expenses by Mr Burke or Fianna Fail?

Why did the Taoiseach not direct Mr Dermot Ahern to interview the source of the allegations, Mr Gogarty?

Was the Taoiseach aware that Mr Gogarty, and not Mr Michael Bailey of Bovale Developments, as originally reported, was the source of the allegations?

Will the Taoiseach direct that the relevant sections of Fianna Fail's national accounts and Dublin North constituency accounts be published?

Is this size of political donation acceptable to Mr Ahern, and is he aware of others of that size at that time?

What evidence did Mr Dermot Ahern's inquiry uncover, and will the Taoiseach publish the result of that inquiry in full?

Is that it?

No. That's only Fine Gael. Labour asked:

Why did it take so long for Mr Burke to issue a statement?

Had he discussed it with the Taoiseach before issuing it?

Why did he not refer to the £10,000 said by Fianna Fail sources to have been passed on to party headquarters?

Was he not aware of any possible conflict of interest in relation to the business interests of the donor of the money?

Would he publish the anonymous threatening letters he says he has received in relation to the allegations?

Apart from handing over these letters to the Garda, has he discussed the matter with it in any shape or form?

Is he saying unequivocally that he received no contribution, then or at any other time, from Bovale or its principals?

Why has the Minister not taken any legal action in respect of the newspaper stories that appeared before his statement was issued?

That's a long list of questions. Have there been any answers?

Nothing since Mr Burke's statement. The Opposition parties want Mr Burke to make a statement to the Dail during next week's debate on the McCracken Tribunal report and to answer questions on the matter.

What if he doesn't?

They say the payments to Mr Burke should be investigated by the next Tribunal examining alleged impropriety by politicians.

What does the Government think of that?

The Government has not totally ruled out the possibility of Mr Burke making a statement to the Dail on the matter. It says it would be "inappropriate" to include the issue in the terms of reference as the Garda is investigating the matter. They do not appear to have ruled it out unequivocally, however. After last Tuesday's Cabinet meeting, Government sources would only confirm that "no decision was taken" to include Mr Burke in the terms of reference.

Has Mr Burke been at the centre of controversy in the past?

Yes, interestingly enough, also in relation to the construction industry. In 1974 he was a central figure in reports in Hibernia and the Sunday Independent concerning land rezonings in his north Co Dublin home base. The accounts of a Brennan and McGowan building company showed a fee payment of £15,000 to Mr Burke under the heading "planning".

Mr Burke had been actively involved in the rezoning of land for residential development in Swords, including land owned by Brennan and McGowan. Mr Burke was also the auctioneer engaged to sell the houses built by Brennan and McGowan in the area.

The reports led to a protracted Garda inquiry during the course of which Mr Burke was interviewed 20 times by gardai, according to the Magill Book of Politics. A file was sent to the Attorney General but no charges were brought.

Are these allegations inconvenient from Mr Burke's point of view?

That's putting it mildly. He is likely to become the busiest Minister in the Government shortly. He will preside over the Government's involvement in the Northern Ireland peace process. The Stormont talks are about to enter a very intensive phase.

He will represent Ireland at the annual "political week" at the UN General Assembly in New York later this month and is due to address the General Assembly on September 25th.

On October 2nd he will sign the Amsterdam Treaty on the amendment of the EU treaties. He will then be a central figure in the Government's campaign for a Yes vote in a referendum on the treaty in the first half of 1998.

He will attend two meetings of European foreign ministers in October, one in Brussels and one in Luxembourg. At the end of the year negotiations with central and eastern European countries seeking EU membership will begin, involving all EU foreign ministers.