Ahern had £32,000 in savings account, tribunal hears

TAOISEACH Bertie Ahern had £32,000 in a building society account in May 1995 when he told AIB his savings amounted to just £5,000, the Mahon Tribunal heard yesterday.

Mr Ahern’s savings were held in the Irish Permanent Building Society. He also had £50,000 in cash — personal savings from the late 1980s onwards — secured in a safe in St Luke’s, the Fianna Fáil constituency office in Drumcondra.

The tribunal heard how his AIB account was “regularised” in May 1995, 18 months after he took out an unsecured loan of £19,115.97 and had made no repayments over the period.

Former AIB bank assistant manager Philip Murphy believes a moratorium must have been agreed whereby interest-only would apply for a period, but no record has been found of such arrangement.

The loan application form drawn up by Mr Murphy in May 1995 described Mr Ahern as employed by Fianna Fáil and resident at St Luke’s, which was valued at £90,000, for eight years. Mr Murphy said he probably would have thought Mr Ahern owned St Luke’s.

Mr Murphy told tribunal lawyer Henry Murphy SC he was not surprised that a week after he secured his loan — just before Christmas 1993 — Mr Ahern phoned to say he wanted to lodge “a couple of bob”.

In the event Mr Ahern, then Minister for Finance, took out a special savings account at Mr Murphy’s suggestion and lodged £22,500. It comprised of £15,000 in cash, a £2,500 cheque and £5,000 in a bank draft. The cheque was made out to cash, and both the cheque and draft were signed by former Fianna Fáil fundraiser Des Richardson.

Mr Murphy was sure this contact did not happen on December 23, the day Mr Ahern got his loan. “I have a recollection of him sitting across the desk from me,” he added. Documents show the savings account was taken out on December 30, 1993.

On April 24, 1994, Mr Murphy got an unexpected phone call from Mr Ahern to say he wanted “to do something for the girls”, a reference he took to mean Mr Ahern’s two daughters. Mr Murphy said he had a vague recollection of going to St Luke’s where Mr Ahern said he had money.

He thought he counted the money at St Luke’s, taking away £30,000 in cash. “I’ve a vague recollection of him saying it was savings. He said he had other money in a safe in Government Buildings. I said it was ridiculous to keep money in a safe.”

Asked for his reaction, Mr Murphy said he was delighted to get another account “from who it was”.

On August 8, 1994, he got another call “to go out again” and he was nearly sure the meeting with Mr Ahern took place in St Luke’s on that date. “My understanding was I was getting money for the girls, to formalise their account.”

Mr Ahern gave him £20,000 in cash to open an account for his daughters but witness did not recall if Mr Ahern mentioned these were savings or how he got the money. “I think I collected forms then.” To the best of his knowledge these were signed by the Ahern daughters.