Ahern admits currency formula fails to stand up

TAOISEACH Bertie Ahern agreed yesterday that a mathematical formula, developed by his legal team to show a controversial lodgement in the mid-1990s was made in sterling, did not stand up to scrutiny.

A total of 67 “theoretical mathematical combinations” had been advanced by Mr Ahern’s legal team to support the view that no dollars were involved in a controversial banking transaction.

Tribunal lawyer Des O’Neill SC put it to Mr Ahern that none of the 67 combinations was now applicable (as they were not based on actual exchange rates at the time).

It was no longer a matter of speculation, Mr O’Neill suggested. The Taoiseach replied: “Yes, that’s right.”

And when Mr O’Neill put it that not one combination stood, the Taoiseach answered: “That’s correct.”

Mr Ahern has been insisting that IR£28,772.90 lodged to an account at the Allied Irish Bank branch in O’Connell Street in Dublin was largely made up of sterling — cash he had received from Michael Wall.

Earlier evidence given to the tribunal on behalf of

AIB suggested it was “probably” dollars that were lodged.

However, the tribunal had heard that the actual daily list of foreign exchange transactions in the city centre branch no longer exists.

The foreign exchange lodgement was made by Mr Ahern’s former partner Celia Larkin on December 5, 1994 — two days after Mr Ahern says he received stg£30,000 in cash from Mr Wall for refurbishing the house in Drumcondra which the Taoiseach intended to rent.

Mr O’Neill recalled that AIB official Rosemary Murtagh’s evidence was that neither the sterling remit rate nor the dollar remit rate was the rate used for the foreign exchange transaction that day.

To do so, counsel pointed out, would have resulted in figures that did not equate to the amount of the actual remit. Therefore, a special remit rate was applied.

Mr Ahern said it came as “a total shock” to him when the tribunal first suggested, last April that a $45,000 lodgment was involved.

He said: “A total shock, because as I said then, I never dealt in dollars, I didn’t exchange any dollars, I received no dollars and there was no dollars.”

To support this assertion Mr Ahern also relied on a preliminary report by a former top banker.

In that report, Paddy Stronge, former chief operating officer of Bank of Ireland corporate finance said: “The coincidence of a round sum in dollars arising would require a breach of more than one branch procedure. I have been unable to find any evidence which would cause me to suspect that any breach of branch procedure occurred.”

Mr Stronge further stated: “I am of the opinion that the evidence does not substantiate a lodgement of $45,000 to Ms Larkin’s account.”

AIB currency department records relating to the Upper O’Connell St branch for the particular day showed less than stg£2,000 being transacted on that day, Mr O’Neill pointed out.

He put it to Mr Ahern that currency services might at their discretion give a better remit rate to benefit the customer.

Mr Ahern agreed it was a matter for the bank’s currency services to determine whether they should allow as transaction to take place at a rate higher than the published rate on the day.