The Department of the Taoiseach is investigating all the circumstances of Mr Paddy Duffy's non-executive directorship of the public relations company Dillon Consultants Ltd.
Amid opposition demands for an inquiry by the Public Offices Commission, a spokesman for Mr Ahern said last night an investigation by Department officials was "ongoing", and that he would answer questions on the matter in the Dail on Tuesday.
The National Millennium Committee has confirmed that Mr Duffy is no longer a member. In a statement, it said the former Government adviser had been appointed in that capacity as an ex-officio member of the NMC: "As Mr Duffy has resigned from his position as senior adviser, he ceases to be a member of the committee."
The statement followed yesterday's report in the Irish Independ- ent that Mr Duffy was both a non-executive director of Dillon Consultants and a member of the millennium committee when the public relations firm was representing Dublin's Gaiety Theatre in an application to the committee for £3 million for a refurbishment scheme.
A committee source told The Irish Times that a grant had been approved, but for "far less than that amount - something closer to £500,000". This must now be agreed by Cabinet.
The source added that while several members were enthusiastic supporters of the Gaiety application, Mr Duffy had not been prominent among them.
In a statement yesterday Mr Duffy said his involvement with the committee's consideration of the Gaiety proposal was "proper and above board". The refurbishment was a "worthy cause" which he supported on merit, as he had many other projects.
The statement added: "As I have already clearly stated, I was not involved in any day-to-day operations nor had any financial dealings with Dillon Consultants at any time. That is the truth. It is unfair and unfounded to try and link me with any business Dillon Consultants Ltd were engaged with."
Both Fine Gael and Labour have called for an independent investigation by the Public Offices Commission.
Fine Gael's Mr Ivan Yates said the latest revelation was in many ways more serious than that concerning Dillon's representation for NTL, the company which bought Cablelink, "because Mr Duffy was the Taoiseach's appointee to the committee and the Taoiseach had a direct personal duty to vet his credentials".
Labour's Mr Pat Rabbitte also called on Mr Duffy to make a statement on "any other areas where he has had contacts with Dillons in his official capacity as Government adviser".
A spokeswoman for NTL said its relationship with Dillons remained suspended.
