Diplomat denies paying for passports

A SAUDI ARABIAN diplomat has told the Moriarty Tribunal he is "positive" he bought a horse - or a share in a stallion - with the £50,000 (€73,076) he gave to former Taoiseach Charles J Haughey in 1985.

The tribunal has heard the money - then more than a Taoiseach's annual salary - was routed through former Ceann Comhairle Dr John O'Connell. Dr O'Connell wrote a personal cheque - made out to cash - for £50,000. This cheque, the tribunal has heard, was lodged to an account used to pay some of Mr Haughey's domestic bills.

In a letter dated December 27, 2005, Mahmoud Fustok, a US-based diplomat with extensive bloodstock interests there, told the tribunal: "Under no circumstances did any official in Ireland ask me for a financial gift or donation of any kind." He said he was "positive" the £50,000 "was a purchase of a horse or a share in a stallion that I truly do not recall. I assure you everything was proper and legal".

He said his friendship with the Irish official concerned - taken to mean Mr Haughey - "was mainly for the promotion of the Irish economy."

The tribunal is examining how 15 people of Lebanese and Palestinian origin - connected to Mr Fustok - came to be granted Irish certificates of naturalisation despite doubts by Department of Justice officials.

Dr O'Connell made personal representations on their behalf to Mr Haughey and the Department of Justice. The late Seán Doherty, then Justice Minister, waived some of the requirements for naturalisation, despite advice from civil servants he could be leaving himself open to accusations the information was not adequate to proceed.

In a letter faxed to the tribunal dated January 15 last, Lebanese businessman Sleiman Moubarak - described in documents as one of Mr Fustok's friends - rejected an Irish official's view that he fraudulently obtained an Irish passport.

Tribunal lawyer Jacqueline O'Brien SC said it was hoped it would be possible for Dr O'Connell to attend to give evidence in the near future. He is receiving medical treatment in Britain.

The tribunal adjourned without setting a resumption date.