AIB official suspected prank over Ahern meeting, tribunal hears
Mr Murphy was AIB assistant branch manager in O’Connell Street when he met Mr Ahern on December 23, 1993. Mr Ahern, the then minister for finance, said he was seeking a loan for legal costs associated with his marriage break-up.
The tribunal is probing Mr Ahern’s personal finances in relation to six banking transactions between December 1993 and October 1994 — including the loan for £19,115.97 which was the focus of yesterday’s examination of Mr Murphy.
While Mr Ahern was looking for a £19,000 loan, he had £50,000 in cash stashed away in a safe — but did not tell the bank, Mr Murphy said. Mr Ahern has said this was personal savings he had accrued from the late 1980s onwards.
No security was given when Mr Ahern got his loan and no letter of sanction was sent to him setting out the repayment schedules. Mr Murphy agreed Mr Ahern was deemed a good risk as he was minister for finance. There was no question of refusing the loan. He could not remember what Mr Ahern’s salary was or whether he had asked him if he had accounts in other banks.
Asked by tribunal lawyer Henry Murphy SC what would have happened “if anything had happened to Mr Ahern”, witness replied: “The bank would have been in an awkward position and maybe I’d have got into trouble.”
Loan repayments did not commence until June 2, 1995, and Mr Murphy said interest-only was being charged for a period. Mr Murphy said: “It would appear the possibility of a moratorium must have been discussed and agreed. I do not believe an action letter was issued for this loan.”
The tribunal heard a file containing details of Mr Ahern’s finances — including the loan application — and other documents are missing from AIB bank records.
The records that exist show Mr Ahern paid back £21,896.30 at an agreed monthly repayment of £2,861.
Tribunal counsel said it was time Mr Murphy “got real” about his evidence about the loan application.
Mr Murphy said he was “nearly sure” he had filled it out but did not know where it was. Challenged about his statement earlier this month in which he said he did not recall filling out the loan application, Mr Murphy said yesterday he was sorry and asked this reference be struck from the record.
Having told the tribunal the loan was the only business discussed by Mr Ahern on December 23, Mr Murphy was shown a special savings account (SSA), provided earlier yesterday by Allied Irish Banks.
The document shows Mr Ahern’s signature on it, and is made out for £22,500. A different day had been overwritten from the original and was replaced with “23” December, 1993.
Mr Murphy agreed a person could only have one SSA in any financial institution and there was a tax advantage in having one as the DIRT tax was less than on other deposit accounts.
Shown this document, which bore his own writing on it, Mr Murphy replied: “I’d forgotten all about that.” Asked by counsel if he was serious, Mr Murphy said: “That is the first time I’ve seen that.” When counsel suggested this would appear to form “another business” during Mr Ahern’s visit, Mr Murphy agreed.
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