Cooper-Flynn denies tax evasion

A Government backbencher tonight denied helping invest money in bogus offshore bank accounts for her father, former minister Padraig Flynn.

Beverley Cooper-Flynn is alleged to have set up the accounts to assist him evade tax on a large sum of money he was given by a planning developer in 1989.

In a statement to the Dáil the Fianna Fail TD admitted her father asked her to help invest IR£25,000 (€32,000) but insisted she knew nothing about the source of the money.

She said she had set up three investment schemes for the money while working at the Irish National Bank.

But the embattled Mayo TD was adamant that the accounts were all above board and she had not benefited in any way from the investments.

Her name was included on the accounts to allow her to control the money, she said.

“In my capacity as an employee of Irish National Bank I believe I fulfilled all of my legal and ethical obligations in relation to these investments,” she said.

“I did not own the funds invested. I did not personally benefit from the investments nor from the proceeds of the investments made by my parents.

“I did not set up a bogus non-resident account.

“I did not in any way engage in or assist tax evasion as has been alleged.”

Ms Cooper-Flynn said the allegations made against her were “false and unfounded”.

Her father, a former environment minister, is alleged to have accepted a cheque for IR£50,000 from a developer in a controversial chain of events involving various ministers including Taoiseach Bertie Ahern.

Earlier, Mr Ahern was forced to answer questions on the scandal as opposition leaders launched an attack about the allegations.

Labour leader Pat Rabbitte called for action to be taken and demanded to know whether the Taoiseach would be sacking Ms Cooper-Flynn.

Fine Gael leader Enda Kenny accused the Taoiseach of putting private party-political interest over public interest.

Mr Ahern admitted it was not credible that such a payment “would not have strings attached” and conceded it was “extraordinary” to receive a cheque made out in cash for IR£50,000 in 1989.

He said the Government would take any necessary action in light of the allegations only when the ongoing planning tribunal, set up to investigate the irregularities in 1997, published its report.