The Progressive Democrats said last night that they were "keen to get back to Government business" in the wake of the Taoiseach's robust defence of a £10,500 interest-free loan to Fianna Fail by a passport investor. Mr Ahern had dealt "satisfactorily" with the issue, a PD spokesman said, after the normal business of the Dail was suspended to enable the Taoiseach to deal with a report in yesterday's Irish Times.
Mr Ahern described the report as "a load of lies" when the Opposition pressed him early yesterday to make a statement. Both the Taoiseach in the Dail, and Government spokesmen throughout the day, denied that money had been diverted into Fianna Fail accounts from any account set up by a passport applicant for the purpose of channelling investment into Ireland.
It emerged that the passport investor set up three accounts in the ICC Bank in 1991 when he began moves to obtain an Irish passport. A Government spokesman explained that the accounts were set up simultaneously. Two of the accounts were investment accounts for channelling funds into Irish companies. The full amount in the third account, a joint deposit account, including the interest accrued, was transferred to a Fianna Fail account in July, 1993.
Mr Brian O'Carroll, the Roscommon-based architect who was the joint signatory on this deposit account along with the American passport investor, Mr Gerry Lindzon, told The Irish Times last night that this deposit account was set up for the purposes of making a political donation to Fianna Fail.
The Taoiseach told the Dail that Mr Lindzon and his wife, Elena, had opened two investment accounts in ICC in 1991 with the intention of obtaining an Irish passport. A third account was also opened, which was "a joint deposit account" with Mr O'Carroll.
In July, 1993 Mr O'Carroll "transferred" £10,524.59 from the account in ICC, on which he had signing powers. "I am assured by the account-holder that this was not an investment account", Mr Ahern stated.
He later explained that "the joint account-holders" (Mr Lind zon and Mr O'Carroll) agreed to make a loan of £10,500 to Fianna Fail. The money - £10,524.59 - was transferred from their account in the ICC Bank into the Fianna Fail fundraising account. The official names on the Fianna Fail account in the Bank of Ireland were Mr Albert Reynolds and Mr Bertie Ahern, party leader and party treasurer, respectively.
Mr Ahern added that the interest-free loan of £10,524.59 "has not yet been repaid nor has any request been made to repay it".
The Labour leader, Mr Ruairi Quinn, confirmed yesterday that he had supported the application for the passport on the basis of a genuine wish to invest in Penncastle, a ceramics company in Shanagarry, Co Cork.
Mr O'Carroll explained last night that he was a joint signatory for the account, along with Mr Lindzon. He said that he had no involvement in the opening of any accounts for money which was to be invested in Ireland by Mr Lindzon. He had acted in a consultancy role for a number of foreign nationals seeking passports, but not for Mr Lindzon.
He said he thought he had suggested to Mr Lindzon, a US lawyer, that he might make the loan, although he [Mr Lindzon] "might have been aware Fianna Fail was looking for money".
Menawhile, a Government spokesman said last night that he had no knowledge whatsoever as to whether immunity from prosecution had been offered informally to - and later withdrawn from - Mr Ray Burke during Mr Burke's discussions with the Flood tribunal team.
Mr Ahern told the Dail: "I have no knowledge of a request for immunity. Nobody raised anything about immunities for the former deputy, Ray Burke."
