Farrell denies link to Haughey funds

The former managing director of the Irish Permanent Building Society, Dr Edmund Farrell, has denied he gave money belonging to the society to Mr Charles Haughey for his own use.

Dr Farrell was called to give evidence yesterday following comments concerning him which had been made by Mr Haughey when he gave evidence in private earlier this year.

Mr Haughey said in evidence that a Fianna Fail fund-raiser, Mr Paul Kavanagh, told him Dr Farrell was someone anxious to assist or prepared to assist him "personally/politically".

Dr Farrell said yesterday this was not the case. He had never said to Mr Kavanagh he would assist Mr Haughey personally. He had given £10,000 to Mr Haughey's personal political fund around the time of the 1989 general election and £20,000 to the appeal to assist the late Mr Brian Lenihan. Otherwise all donations had been to the Fianna Fail party and subsequent to a request for funds.

Dr Farrell said two cheques made out to Fianna Fail for £50,000 each, written in 1986 and lodged to the party leader's account controlled by Mr Haughey, had been made subsequent to the receipt of letters soliciting donations and were intended for Fianna Fail.

When Mr John Coughlan SC, for the tribunal, put it to Dr Farrell that the party had said no such letters were issued in 1986, Dr Farrell said: "I can only assure you that I got letters of request."

Dr Farrell said the letters of request would have been kept in files in the society but these particular files had gone missing. That there were two separate payments indicated to him there must have been two separate letters of request.

Mr Kavanagh said he remembered meeting Dr Farrell and Mr Patrick Kevans in the Shelbourne Hotel in 1987 and a conversation in which Dr Farrell wondered how Mr Haughey managed to maintain his lifestyle.

Dr Farrell said he could not recall any such meeting or conversation. Nor could he recall a conversation about how Mr Haughey could be funded.

Such a conversation would have left an impression, he said. "It would be a unique situation in my life to have the Prime Minister of my country, by whatever means, seeking to be funded."

Mr Kavanagh said he subsequently told Mr Haughey that if he wanted to seek donations from Dr Farrell he might get more if he did it directly.

He said what he had in mind were donations to support Mr Haughey in personal political activities. He said he had no role in that regard as he raised money for the party.

Mr Coughlan put it to Mr Kavanagh that Mr Kevans, then a director of the Irish Permanent, could not remember meeting Mr Kavanagh in the Shelbourne or the conversation referred to occurring. Mr Kavanagh said he had a clear recollection of the conversation. Mr Kevans said he had "racked" his mind, but he could not remember any such meeting or conversation.