"As no such monies have been paid, no repayment arises."
- Mr Charles Haughey in a letter to solicitors for the Dunnes Settlement Trust in 1994.
"As a matter of probability, Pounds 1.3 million was paid to accounts managed by Mr Traynor on behalf of our client . . . our client was not aware that Mr Dunne had transferred Pounds 1.3 million to Mr Traynor in tended for his benefit."
- Mr Eoin McGonigal SC, representing Mr Haughey, at yesterday's sitting of the tribunal.
MR Charles Haughey's response to allegations that he received more than Pounds 1 million from Mr Ben Dunne has changed dramatically. The change came after two significant developments.
First, the tribunal team successfully traced the payments along a muddy trail through several countries and many bank accounts into a Cayman Islands account maintained in Dublin, from which substantial payments were made to defray Mr Haughey's bills and expenses.
Second, they served Mr Haughey with a subpoena directing him to appear before the tribunal. They also gave him 12 to 14 ring-binders filled with evidence relating to the payments.
Up to yesterday, Mr Haughey had given no indication whether he would appear at the tribunal. But yesterday his counsel, Mr Eoin McGonigal SC, said Mr Haughey would be available to give evidence next week, or whenever required, and would provide documentation to the tribunal by next Friday dealing with all the issues concerning him.
Up to yesterday it was believed that Mr Haughey might launch a High Court challenge against any decision by the tribunal to direct Mr Ben Dunne's solicitor, Mr Noel Smyth, to reveal details of conversations he has had with Mr Haughey about the payments from Mr Dunne.
But yesterday his counsel said Mr Haughey would not do so, but would accept whatever the tribunal decided.
The clarification of Mr Haughey's position came after the tribunal team had found the missing pieces in the money trail from Mr Dunne to Mr Haughey.
Their success in doing so is deeply impressive. It comes after the taking of evidence in London from bankers, and other research over the past two months.
Mr Haughey's position now, according to Mr McGonigal, is that he probably did receive the money but did not know that it had come from Mr Dunne. He is to provide documentation that would show this, his counsel said yesterday.
His appearance is eagerly awaited.
Most people will not readily be able to conceive of circumstances in which they might receive more than Pounds 1 million and not know from whence it came. It became clear yesterday, however, that Mr Haughey's finances were handled in a different way from most people's.
Substantial sums were taken from time to time by the late Mr Des Traynor from the account of a Cayman Islands bank, held in a Dublin bank. This money was given to Mr Paul Carty, of the Haughey Boland accountancy firm.
He in turn used it to pay bills and other expenses of Mr Haughey. In 1991, another accountant, Mr Jack Stakelum, took over this function.
Yesterday, we were given an insight into how a number of wealthy people, and not just Mr Haughey, manage their finances. In particular, we heard the extraordinary lengths to which they go to keep their ownership of this money secret.
Mr Haughey's former accountant, Mr Traynor, and an associate, Mr Padraig Collery, controlled the bank account of a Cayman Islands bank, held in a Dublin bank, in which a number of Irish residents held at one stage between Pounds 30 million and Pounds 40 million. It was in this account that most of the Pounds 1.3 million allegedly paid by Mr Ben Dunne for Mr Haughey's benefit ended up.
Mr Traynor and Mr Collery managed their clients' money "in considerable secrecy", the tribunal was told. An individual who wanted for some reason to put money into an anonymous off-shore account would put it under the control of these two gentlemen.
They would lodge it in one account, mingling the money of their various clients together. The account was in the name of a Cayman Islands bank, held in the Dublin bank, Guinness & Mahon.
All the bank statement would show was a total sum in the account. Guinness & Mahon does not appear to have known the names of the beneficial owners of the monies.
But Mr Traynor and Mr Collery kept separate records of the amounts paid into and out of this account, and knew exactly how much money each of their secret clients had in it. They kept these records in "memorandum accounts", but even these had codes rather than names attached.
Mr Traynor and Mr Collery kept a separate list correlating the codes to the real owners of the money.
No reason was given yesterday as to why these people would want to go to such lengths to keep their ownership of large amounts of money secret. The most common reason is to avoid payment of tax
The tribunal team knows the identity of the other Irish residents who had money in Mr Traynor's and Mr Collery's account, according to informed sources. But its terms of reference dictate that this information is not relevant and is therefore unlikely to be made public.
Up to yesterday, there were two factors that could have delayed the tribunal's work considerably.
The first was the possibility that, if the tribunal directed Mr Noel Smyth to reveal details of his conversations with Mr Haughey about the payments, Mr Haughey could appeal to the High Court. If this challenge had then gone on to the Supreme Court, the tribunal's work could have been held up considerably.
The statement by Mr Haughey's counsel yesterday that he would accept the tribunal's decision on this has removed this possibility.
The second factor is the search for evidence in the Cayman Islands. Judgment is expected today or tomorrow on an application by the tribunal that a Cayman Islands bank and a number of individuals should be required to give evidence and release documents to the tribunal.
Whoever loses is expected to appeal the decision. That process could take until September or October.
Now, however, the money trail appears to be complete and Mr Haughey accepts the "probability" that hue got the money.