Ahern crisis divides Government

The deepening crisis facing Taoiseach Bertie Ahern over cash payments he accepted when Minister for Finance in the 1990s was tonight sharply dividing his Government.

As Cabinet colleagues and loyal TDs rallied around him, his Progressive Democrats partners and one rebel Fianna Fáil backbencher claimed he was politically compromised by the money.

On Tuesday, Mr Ahern admitted accepting a €50,000 euro (£34,000) as yet unpaid loan from 12 friends in 1993/1994 and an £8,000 (€11,800) speaking engagement fee in Manchester in 1994.

Mr Ahern is due to give a full explanation on the Manchester payments during a scheduled debate in the Dáil next Tuesday.

But Government TD MJ Nolan and Minister of State Tom Parlon today both claimed the cash compromised the Mr Ahern’s role as a minister.

Minister for Finance Brian Cowen and Minister for Foreign Affairs Dermot Ahern today firmly defended their premier while TD Barry Andrews branded the escalating crisis a farce.

Dublin backbencher Barry Andrews said it would be a complete farce if Mr Ahern’s premiership comes to an end over the crisis.

“I back the Taoiseach 100%. He’s a superb leader when you look at how he has united the party and performed on issues like the economy and Northern Ireland.

Earlier Carlow TD, Mr Nolan said today: “He did compromise himself by not making an effort to repay the loans.”

“I think it’s not in anybody’s interests that a member of Government should be beholden to anybody.”

Mr Nolan was one of four rebel TDs who tabled a motion of no confidence in former Taoiseach Charles Haughey in 1991.

Tánaiste Michael McDowell has warned that he is not satisfied by Mr Ahern’s explanation on the Manchester payment and said very significant matters of concern remained.

Minister of State and Progressive Democrats president Tom Parlon said today: “I do believe, to whatever extent, he is compromised. Like Michael McDowell said, I feel that he has very serious questions to answer.”

Mr McDowell today refused to comment further on yesterday’s remarks that there were significant areas of concern about Mr Ahern’s explanations.

“I’ve said everything I want to say on this matter yesterday and I don’t want to say anything to add or subtract to that,” he said.

Mr Ahern told reporters at the National Ploughing Championships that he would answer the questions during a special scheduled debate on Tuesday.

The latest developments pose the biggest-ever threat to the two-party Coalition government, and the nine-year reign of Mr Ahern.

Mr Cowen, deemed my many to be Mr Ahern’s most obvious successor, spoke earlier today for the first time on the eight-day crisis.

The deputy Fianna Fáil leader robustly dismissed suggestions of corruption and insisted Mr Ahern broke no ministerial codes of ethics.

Mr Cowen said he believed Mr Ahern would be able to fully answer all the questions during a scheduled debated in the Dáil parliament next Tuesday.

“The Taoiseach has said the Dáil will be forum in which he will seek to account for these matters,” said Mr Cowen.

“There is no question of anything dishonest or corrupt happening here. It does not become anybody to involve themselves in that speculation.

“Where is there any evidence to suggest that he compromised the performance of his public duties?”

He reiterated that the money was unsolicited and Mr Ahern was speaking in Manchester in a personal capacity, rather than in his role as Minister for Finance.

In addition, there were no formal guidelines in place in 1993, as there are now, in relation to the acceptance of gifts by ministers, he insisted.

Earlier, Dermot Ahern reiterated that the Government was stable and there was no possibility of the Progressive Democrats pulling out.

“As far as I’m concerned the Coalition is very solid,” he said.

Manchester businessman John Kennedy, who attended the Manchester event, said the payment was neither a political donation nor a loan.

He revealed it was organised by the late Tim Kilroe, founder of Irish regional airline Aer Arann.

The dinner took place at the Four Seasons Hotel in the city, which was then owned by Mr Kilroe.

Mr Kennedy said around 27 people were at the function and that a collection was made for Mr Ahern, who did not speak at the event.

“Most of the people around the table would have met him on a previous occasion but there was no particular speech,” Mr Kennedy told RTÉ News. “Somebody came up with the idea that we should make a collection to give him something and that was done.”

Meanwhile Minister for Defence Willie O’Dea tonight blamed a “media frenzy” and not the Progressive Democrats for trying to topple Mr Ahern.

“Every half hour there is literally a new question or a new allegation,” he said.

“We’re in the height of a media frenzy, the attempt being of course to be the first person to strike the fatal blow to remove Bertie Ahern. I can assure the nation now that that is not going to happen.”

He added: “The frenzy is being led by the media. It’s journalists who are ringing the Fianna Fáil press office. It’s journalists who are ringing me, not Michael McDowell.”

Several Government TDs could not be contacted for comment tonight.

The People Before Profit Alliance announced it will be holding an anti-corruption protest outside the Dáil parliament to coincide with Tuesday’s debate.