A defiant Mr Liam Lawlor TD is to resist any attempt to expel him from Fianna Fail, telling a party inquiry today he received no improper payments from Mr Frank Dunlop or anyone else.
Mr Lawlor said yesterday there was "no question" of his resigning from the party and said he would give a public account later today of the details he gives to his party's Standards in Public Life Committee this morning.
While he would not comment further yesterday, it is believed he will say that significant sums of money he received from Mr Dunlop or others were either political donations or consultancy fees for work unconnected with his political life.
A number of other Fianna Fail Dublin councillors and former councillors are believed to have "questions to answer" following their initial meetings with the committee. Yesterday the party inquiry held second meetings with a number of individuals, and there may be more repeat visits to party headquarters before next weekend.
The Fianna Fail inquiry team has substantially accelerated its pace and is now likely to finish its interviews at the end of the week. It is expected to meet all day on Saturday to draft an interim report. The report may be sent as early as next week to the Fianna Fail parliamentary party and National Executive.
The inquiry committee will not make recommendations in relation to individuals it has interviewed. Under the party Code of Ethics it will be the National Executive, chaired by the Taoiseach, Mr Ahern, which will decide on penalties - up to and including expulsion - for anyone involved in wrongdoing.
It is widely believed that Mr Lawlor is the "powerful individual" described at the Flood tribunal by Mr Frank Dunlop as having received £40,000 in connection with his support for the controversial Quarryvale rezoning. This individual also received £8,500 from Mr Dunlop in April and May of 1991.
Mr Lawlor has admitted he received money from Mr Dunlop but has not confirmed the amount.
What is likely to be the most dramatic encounter of the Fianna Fail inquiry comes as the Dail prepares to vote for the Government's strategy of setting up an all-party committee to consider the future of political funding and anti-corruption measures.
The Government yesterday failed to produce any proposals on reform of political funding, despite statements on Monday from both Coalition parties that they would do so. Differences are apparent within Fianna Fail and the Progressive Democrats on the issue.
However, the Government has won the support of three key independents - Ms Mildred Fox, Mr Tom Gildea and Mr Jackie Healy-Rae - for its strategy of putting the issue into an all-party committee. The fourth independent who usually supports the Coalition, Mr Harry Blaney, was not in Leinster House yesterday because of a family bereavement.
The independents will ensure the passage tonight of a Government proposal to defer consideration of a Labour Party Bill to ban business donations, until December 1st.
Ms Fox will then become a member of the seven-member committee which is to report to the main ail party leaders by September 30th. Ms Fox, told The Irish Times last night that if the Fianna Fail inquiry found anyone guilty of wrongdoing, he or she should resign their Dail seat.
The all-party committee, according to the Government, will consider the Labour Bill, anti-corruption measures, the regulation of political lobbyists and State funding of political parties.
The Labour leader, Mr Ruairi Quinn, immediately accused the Government of seeking to win "six months' grace" through a ruse to postpone hard decisions.
Meanwhile, Fine Gael Senator Mr Liam Cosgrave has written to his party leader, Mr John Bruton, protesting strongly at what he says was unfair treatment in the report of the internal Fine Gael inquiry. Mr Bruton said last week that he would not allow Mr Cosgrave run for the Dail again unless he provided additional information concerning donations he says he received.