Haughey: lavish lifestyle

Haughey Admits Receiving Businessman's Money

The ex-Taoiseach was given the money between 1987 and 1991 by Ben Dunne, former chairman of Dunnes Stores, the Irish Republic's biggest chain store. Mr Haughey stressed that no political favours were asked or given.

In nearly two hours of giving evidence, Mr Haughey also told the tribunal at Dublin Castle that it never affected the discharge of his public duties while in office. He said no action or decision of his in government was taken to benefit Dunnes Stores.

He told the tribunal he did not know until 1993, after he left office, that Mr Dunne was the donor.

The tribunal was established in February on the orders of the previous Irish government to investigate the extent of payments by Dunnes Stores to politicians and their families over a 10-year period.

Charles Haughey admitted that while he was prime minister he accepted three bank drafts in three fictitious names for nearly £250,000. He also acknowledged that another £1 million was channelled through foreign bank accounts.

Mr Haughey said: "In hindsight, I accept that a lot of the problems and embarrassment I have caused could have been avoided if I had been more forthcoming."

His private finances had been peripheral to his life and he had left all his financial affairs since 1960 to his accountant, Des Traynor, who is now dead.

Mr Haughey said that when he left Government in 1992 he was determined to leave public life firmly behind. He also wanted to leave those following him free to manage things in their own way without any attempt by him to influence or to interfere.

The effect of this transition was that his recollection of events became increasingly remote and diffused, he added. In trying to recollect times, dates, sequence of events and details of conversations for the tribunal he had been "at this disadvantage".

Mr Haughey, 71, also admitted failing to inform fully his legal team, but told the tribunal his tax affairs were always up to date.