I was not Ahern’s close friend, says economist

TOP economist Padraic O’Connor — who signed off on a £5,000 payment that Bertie Ahern says was to go towards his marital separation legal costs in 1993 — yesterday disputed the Taoiseach’s description of him as being a personal friend.

Mr O’Connor, who was then managing director of NCB Stockbrokers, told the Mahon Tribunal his relationship with Mr Ahern was a professional one. He was a currency adviser to the Government when Mr Ahern was finance minister.

Asked by tribunal lawyer Des O’Neill SC if he was a personal friend — then or now — of Mr Ahern, Mr O’Connor replied: “I had a relationship with Mr Ahern in the early 1990s which I would describe as a professional relationship.

“It arose, perhaps, from me being an economist in the Central Bank and later as managing director of NCB. I suppose it’s flattering to be called a friend. I was not a close personal friend.

“Since I left NCB eight years ago, I suppose I met Mr Ahern once or twice.”

Mr O’Connor stressed he made no personal donation to Mr Ahern and he disputes the version by former Fianna Fáil chief fundraiser Des Richardson, that he (Richardson) requested a contribution for this purpose.

He said Mr Richardson asked him to consider being among four or five “entities” that would meet the £20,000 to £25,000 costs of running St Luke’s constituency office — Mr Ahern’s Dublin Central base in Drumcondra.

Mr Richardson has said he told Mr O’Connor in his office that the £5,000 was to meet Mr Ahern’s legal bills. He said Mr O’Connor’s contribution — the single biggest donation— formed part of the £22,500 donated by some of Mr Ahern’s “close friends”.

However, Mr Ahern had already raised a loan from AIB to meet these legal costs some days previously.

During his RTÉ interview — in the wake of last year’s “dig-out” disclosure — the Taoiseach named Mr O’Connor among 12 donors he described as his personal friends who had made contributions.

Speaking in the Dáil on October 6, 2006, Mr Ahern said Mr O’Connor’s donation was made in the form of a draft: “As far as I was aware, Padraic O’Connor personally gave me this.”

Mr O’Connor said he was “very surprised” at Mr Ahern’s reference to him during the RTÉ interview on September 26 last year. “I could not understand why this was being said.”

Mr O’Connor insisted the £5,000, was sought by Mr Richardson to run the FF constituency office.

The tribunal has discovered a bogus invoice for a “health and safety survey” for payment of £5,000 plus 21% VAT (£6,050 in total).

Mr O’Connor said he had no idea Mr Ahern was going to send him a cheque for €11,829, dated September 29, “in full and final settlement of the outstanding loan you very kindly extended to me”.

Mr O’Connor said he wrote to Mr Richardson saying it was NCB’s payment and he would hold the cheque uncashed “unless you or the Taoiseach asks me to deal with the cheque differently”.

The tribunal is seeking Mr Richardson’s bank records for 71 financial institutions from 1992 to 1996.