Taoiseach silent over allegation that he met Burke and developer

The Taoiseach has declined to comment on an allegation that he met the former minister for justice, Mr Ray Burke, with the developer, Mr Michael Bailey, when Mr Burke's suitability for office was being investigated in 1997.

However, sources close to the Taoiseach said last night that he had already denied the claim in a conversation with the Minister for Social, Community and Family Affairs, Mr Dermot Ahern.

The Taoiseach does acknowledge speaking by phone to Mr Bailey about the allegations concerning Mr Burke.

The new allegation is contained in a statement furnished to the planning tribunal within the past few weeks by Mr Dermot Ahern which raises fresh questions about the thoroughness of the investigation into Mr Burke's suitability for Ministerial office.

In 1997, the Taoiseach asked Mr Dermot Ahern to investigate the allegations then circulating about Mr Burke.

After he reported back on Mr Joseph Murphy jnr's denial that he had paid money to Mr Burke, the Taoiseach appointed Mr Burke to the Cabinet.

However, a few days later, Mr Murphy made serious allegations at a second meeting.

Mr Ahern's statement comprises two memorandums summarising his meetings with Mr Murphy in June 1997. At their first meeting, in London on June 24th, Mr Murphy denied that he or his company, Joseph Murphy Structural Engineering, paid any money to Mr Burke.

This has since been contradicted by evidence JMSE itself has produced at the Flood tribunal, which shows that £30,000 in cash and a cheque were drawn from company accounts to pay Mr Burke.

Mr Dermot Ahern related Mr Murphy's denial to the Taoiseach, and Mr Burke was appointed to the Cabinet two days later, on June 26th.

However, four days later, Mr Murphy called to arrange a second meeting, at which he made a number of allegations. At the meeting, in Dublin on June 31st, he told Mr Dermot Ahern that the Taoiseach had a three-hour meeting with Mr Burke and Mr Bailey.

Mr Murphy also claimed that payments were made to Mr Burke and two other senior Fianna Fail politicians. He also claimed Mr Bailey proposed that the two men jointly give £100,000 to Mr James Gogarty to buy his silence about the Burke payment, according to yesterday's Sunday Business Post.

Mr Dermot Ahern referred last year to "other issues" raised by Mr Murphy. He told the Dail he referred these to the tribunal rather than "raising hares" in the Dail. Mr Ahern explained that he had no direct evidence and all he was told was hearsay.

In 1997, the Taoiseach said he had gone "to extraordinary lengths" to get to the bottom of the allegations against Mr Burke. Mr Ahern has been criticised for failing to talk to Mr Bailey and Mr James Gogarty, the two men who admit to having been present in Mr Burke's home when the politician was paid at least £30,000 in June 1989.

Mr Murphy and Mr Bailey declined to comment yesterday on the latest revelations, except to deplore the leaking of another tribunal document.

A spokesman for Mr Bailey said he was appalled at the "vicious and deliberate" leaking of a confidential tribunal document. He was constrained from further comment on legal advice that the leak was a "direct interference" with the conduct of the tribunal.

Mr Bailey has denied giving money to Mr Burke in 1989 as alleged by Mr Gogarty at the tribunal. He has made political contributions to Fianna Fail on other occasions and has been a member of a party cumann in Mr Burke's area for over 20 years.

Mr Murphy jnr says he did not attend the meeting in Mr Burke's house, as alleged by Mr Gogarty. JMSE claims Mr Gogarty was acting on a "frolic" of his own.