Flynn quits over money laundering probe

TAOISEACH Bertie Ahern’s most trusted troubleshooter Phil Flynn last night sensationally resigned from all his public positions.

He admitted travelling to Bulgaria with the Cork businessman at the centre of the ongoing money laundering investigations.

In addition to resigning as head of the Government’s Decentralisation Implementation Group, Mr Flynn has also given up his ministerial appointment to the board of the VHI and resigned as chairman of the Bank of Scotland (Ireland).

Speaking to the Irish Examiner last night, Mr Flynn said he had decided to resign from the Bank of Scotland because “he could see how they were beginning to suffer”.

“Once I made that decision the other two would have become the story and I didn’t have any choice. The work I’m doing in those two is very important and it would have damaged it.”

The shocking development, which leaves the Government’s decentralisation plan rudderless, came after Mr Flynn travelled to Bulgaria two weeks ago with Ted Cunningham, the founder of Cork firm Chesterton Finance.

The firm is at the centre of garda investigations into money laundering.

Mr Cunningham had been placed under surveillance by Special Branch detectives six months ago after he was spotted meeting with a pair of Bulgarian arms dealers.

However Mr Flynn, a non-executive director of Chesterton Finance, last night denied any knowledge of arms deals or money laundering activities.

“Absolutely not. I have met a whole range of Bulgarian business people but none of them selling arms,” he said.

Mr Flynn said he was cooperating with gardaí and had already handed over all files in relation to Chesterton Finance to the Criminal Assets Bureau.

But in a defiant gesture the one-time Sinn Féin vice president and ICTU boss promised to bounce back.

“I just got caught in the crossfire. I’ll be back,” he said last night.

Although a spokesperson for the Taoiseach had earlier said Mr Ahern was “looking at” Mr Flynn’s position, the Government declined to comment last night until it received official conformation of the resignations.

A Bank of Scotland statement last night confirmed that although he was “guilty of no wrongdoing” Mr Flynn and the bank had decided it was best to step down.