Businessman withdraws claim that he bribed Taoiseach

The Taoiseach, Bertie Ahern, stands to win between £5,000 and £30,000 in damages after a Cork businessman who claimed to have given him a bribe in 1989 withdrew the claim.

It has been reported that Denis "Starry" O'Brien has instructed his lawyers not to contest the libel action.

Mr O'Brien told the Flood Tribunal that he gave Mr Ahern £50,000 in the car park of Dublin's Burlington Hotel on behalf of property developer Owen O'Callahgan.

The claims first appeared in the Irish Examiner and the Sunday Business Post, both of whom used Mr O'Brien as their primary source.

The articles alleged that Mr Ahern had accepted the bribe in return for rezoning favours on land where the controversial Quarryvale development was eventually built.

However, by withdrawing his defence, Mr O'Brien is now effectively saying that he will not stand over the allegations.

The Taoiseach's solicitors received formal notification of the move on Friday afternoon.

Though he was not named in the articles in question, Mr Ahern immediately denied the claims, as did Mr O'Callaghan.

Mr Ahern now stands to win substantial damages and legal costs of tens of thousands of pounds.

He could still sue the Examiner or the Sunday Business Post, but he has said in the past that he believes senior politicians shouldn't take action against the press.