MRS Margaret Heffernan was "stunned" when she heard her brother, Mr Ben Dunne had given more than £1 million to former Taoiseach Mr Charles Haughey, Mr Michael Irwin told the tribunal.
The former chief accountant for Dunnes Stores said he had visited Mr Dunne at his home in Castleknock in 1993 when he had been removed as chairman. Mr Dunne was in a wheelchair following an accident.
"Did he say anything of relevance to this tribunal?" asked Mr Denis McCullough SC, counsel for the tribunal.
"He told me had paid £1 million to `Charlie'. I asked him if that meant Charles Haughey and he said `yes, it did'," Mr Irwin said.
Mr Dunne told him that Mr Haughey had been in financial difficulties and had approached Mr Noel Fox through Mr Des Traynor. Mr Irwin asked him where the money had come from and Mr Dunne told him not to worry about that.
Mr Irwin said he had no previous indication of this payment. As far as he was concerned, no political advantage or benefit to Dunnes Stores flawed from it. He believed Mr Duane had helped Mr Haughey because he was in financial difficulties.
"A lot of people would find it staggering. Knowing him as you do, were you surprised?" counsel asked.
"No. He is very generous," Mr Irwin said.
"Is Mr Dunne the kind of man who would give £1 million to someone in financial difficulties and look for nothing in return?"
"Yes."
"That is your sworn evidence?" Mr McCullough asked.
"Yes," Mr Irwin replied. He said the next day he contacted Mr Noel Fox and arranged an urgent meeting. He told him what Mr Dunne said. Mr Fox's reaction was "pretty muted". Mr Irwin said it was difficult to say if he knew already.
Then there was a phone call to Mr Fox's office and he asked Mr Irwin to leave the room. When he returned some minutes later he was told Mr Frank Dunne had called and wanted to meet him to discuss the matter.
Mr Irwin went to Mr Frank Dunne's home in Dunboyne and related to him his discussion with his brother, Ben. Mr Frank Dunne was "taken aback".
He met Mrs Heffernan and her sister, Miss Duane, in Mrs Heffernan's office. He told them about the same discussion with Mr Ben Duane. Mr Irwin said: "I think they were stunned."
There was laughter in the tribunal gallery when Mr McCullough asked: "Was she [Mrs Heffernan] stunned speechless or did she say anything?"
"Mrs Heffernan made a comment that she would have to talk to Mr Haughey to ascertain if he ever got Dunnes Stores money, Mr Irwin said.
He then met Mr Frank Bohan of Bond La Touche, joint auditors for Dunnes Stores, and told him. He was also taken aback, Mr Irwin said.
Counsel for the Dunnes Settlement Trust, Mr Patrick MacEntee SC, put it to him that this meeting never took place. Mr Irwin said he had a clear recollection of the meeting in Mr Bohan's office.
Earlier, Mr Irwin had told the tribunal about the sterling cheque drawn on the account of Dunnes Stores in Bangor. He came across it in the intercompany account. The cheque was payable to Mr John Furze. He had never heard of him.
When he asked Mr Ben Dunne if he could explain it, he was referred to Mr Noel Fox. When asked to explain it by Mr Drumgoole in the Dunnes Stores auditors, Oliver Freaney and Co, he referred him to Mr Fox, who was in the same company. It was never dealt with but left in the "suspense account".
Yesterday's tribunal hearing began with Mr Matthew Price, manager of Dunnes Stores in Bangor, who said he was asked to arrange for a cheque to be made out to Mr Furze. The note he kept of the instructions indicated it was for "private" purposes. He had no idea who Mr Furze was until six weeks ago, when he read it in the national newspapers, he said.