Former head of VHI tells of request about Lenihan's costs

The former Taoiseach, Mr Charles Haughey, asked the chief executive of the Voluntary Health Insurance at the time, Mr Tom Ryan, if the VHI would make a contribution towards the medical costs of the late Mr Brian Lenihan.

Mr Ryan told the Moriarty tribunal that on a date he could not recollect, but probably in early May 1989, he got a call from the Taoiseach's office asking that he go there. "He referred to Brian Lenihan's illness and proposed treatment in the USA," Mr Ryan said. "He outlined the likely total cost and likely hospitalisation bill, and asked would the VHI pay the hospital account."

Mr Ryan said Mr Haughey had some papers which seemed to contain estimates of the likely cost. The liver transplant operation in the Mayo Clinic was put at $80,000 or £50,000, representing one-third to one-half of the total estimated costs. He gave Mr Haughey an outline of the board's attitude to such applications.

He told Mr John Coughlan SC, for the tribunal, that all applications for ex-gratia payments went to him, and he knew of no application to the VHI in relation to Mr Lenihan's treatment other than the request from Mr Haughey. However, he had read recently a book written by Mrs Lenihan in which she referred to making inquiries to the VHI. He had not been aware of those inquiries at the time.

Applications for significant ex-gratia payments had to be approved by the board, and he placed the matter on the agenda for a meeting on May 18th. Beforehand he discussed it with the then chairman, Mr Des Cashell.

The board agreed to meet the cost of Mr Lenihan's operation. A precise figure was not available at the time as the operation had not yet occurred, but a figure of in and around £50,000 was mentioned.

Mr Ryan said he did not recall conveying the decision of the board to Mr Haughey or anyone else acting on behalf of Mr Lenihan. The operation occurred on May 23rd. A payment was made by way of US dollar draft to the Mayo Clinic in August. The payment was for $82,000 or £57,000 approximately.

He had no memory of ever signing the cheque although it would have had to be signed by a senior executive and a member of the board.

He said that as a result of recent inquiries he believed the total cost of Mr Lenihan's treatment in the US clinic was $160,000.

Mr Cashell said the VHI almost always approved applications for ex-gratia payments which were put to the board. By the time such applications got to the board, they in effect had the backing of the management. He had not known that the proposal had originated from Mr Haughey.

Mr Noel Fox, a member of the VHI board in 1989 and a financial adviser to the Dunnes Stores group, said he had no knowledge as to whether Mr Ben Dunne had contributed to the fund for Mr Lenihan. He himself had made no contribution.