Fine Gael has indicated that it will take disciplinary proceedings against former TD and senator Mr Liam Cosgrave, over his evidence to the Flood tribunal.
The party said yesterday that Mr Cosgrave's evidence, in which it emerged that he had misled an internal inquiry into political donations, had raised concern.
Should the committee make a finding against Mr Cosgrave, the range of possible penalties is understood to include the ultimate sanction of dismissal from the party.
A party spokesman said: "Fine Gael continues to closely monitor the proceedings at the tribunal. The evidence to date raises concern about the evidence given to the Fine Gael inquiry in 2000 and about the returns which were filed to the relevant State authorities. Those issues merit referral to the disciplinary committee of the party's national executive."
With Mr Cosgrave continuing his evidence to the tribunal yesterday, it was unclear when disciplinary proceedings against him might begin. While it is up to the committee to decide when to sit, the fact that the tribunal is continuing could raise legal complexities if a parallel non-statutory inquiry was initiated.
The party said yesterday it was not practice to disclose who sits on the committee. The matter is expected to be referred to the national executive as its monthly meeting for April.
A TD or senator for 20 years, Mr Cosgrave failed in his campaign for a Dáil seat in Dun Laoghaire-Rathdown constituency last year. He is the son of former taoiseach Mr Liam Cosgrave. His grandfather, the late Mr William T. Cosgrave, was also taoiseach.
Before the election last year, Mr Cosgrave accused Fine Gael of trying to erase the family name when it added a third candidate to the ticket. He has described the party's inquiry in 2000 as "sloppy" and "sinister". The report of the inquiry, chaired by Mr James Nugent SC, said it was unable to come to a definitive conclusion in relation to the payments Mr Cosgrave had received.
It emerged at the tribunal on Thursday that Mr Cosgrave had received more than £7,000 in election payments and other payments from former lobbyist Mr Frank Dunlop.
This contrasted with the sum of £3,000 to £3,500 which he declared to the Fine Gael inquiry.
Mr Cosgrave acknowledged undeclared payments of £1,000 and £2,5000 to the tribunal for the first time last Tuesday.
In addition, lawyers for the tribunal revealed that Mr Cosgrave had failed to declare the £2,500 donation under ethics legislation. This is an offence under the Electoral Act of 1997.
Mr Cosgrave denies receiving any bribes and has said he failed to disclose payments because he had forgotten or underestimated them.