Ahern to claim salary converted into sterling
Taoiseach will outline cash trail at tribunal
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TAOISEACH Bertie Ahern is planning to tell the Mahon Tribunal he had some of his salary cheques converted into sterling, changed back into punts, and then lodged to building society accounts.
Mr Ahern is expected to claim that he converted a number of Irish-pound cheques paid to him as Minister for Finance by the Collector General, into the British currency.
It is understood that Mr Ahern will say he then asked his secretary Grainne Carruth to reconvert the sterling cash into Irish pounds, and to lodge the proceeds into his account and into those of his two daughters.
The projected explanation, if offered in testimony to the tribunal, will be perceived by many observers as bordering on the bizarre as Mr Ahern comes under intense pressure over his version of events.
Ms Carruth this week conceded at the Mahon Tribunal that lodgments she made to the Irish Permanent Building Society accounts in 1994 were inextricably linked to sterling conversions made at the same time.
An outline of Mr Ahern's planned new strategy was provided yesterday by a highly-placed source. But he declined to specify why the Taoiseach would convert Irish cheques into sterling, then reconvert them to Irish pounds and lodge them, after paying foreign exchange charges and commissions on each transaction.
"There are perfectly legitimate reasons why things happened the way they did," the source insisted.
He claimed the amounts involved in the eventual lodgements to the building society accounts in 1994 -- stg£15,500 -- were well within what Mr Ahern would have earned as Minister for Finance.
Critically, the explanation could allow Mr Ahern to argue that the eventual payments into the accounts were the proceeds of his salary cheques alone -- as he stated last February.
By insisting the lodgements were salary-based, Mr Ahern would steer clear of new tax liability and stay in line with his previous claim that he had made a full disclosure to the Revenue.
Convoluted
Convoluted currency switches would also allow his testimony to not necessarily clash with that of his former constituency secretary, Ms Carruth, who agreed last week that sterling was first converted before she made the lodgements.
Mr Ahern has disclosed possible liabilities on his acceptance of claimed dig-outs in Ireland and an alleged stg£8,000 whip-round in Manchester, together with a possible benefit-in-kind from his residency at his St Luke's constituency office, for which he said he paid a nominal annual rent.
If he can show that the sterling amounts tied up in the eventual lodgements had actually begun life as fully-taxed payments to him by the Irish Exchequer, then no further tax liability would lie.
Correspondence from the Revenue Commissioners to Mr Ahern was leaked in January. In it the tax authorities declined to accept he was making "full voluntary disclosure" on potential liabilities, despite his payment of around €70,000 on account.
Meanwhile, Fine Gael frontbencher Phil Hogan called on Tanaiste Brian Cowen to say whether he still believes the Taoiseach is telling the truth about his finances.
"Brian Cowen has insisted to the Dail that Bertie Ahern was truthful in his dealings with the Mahon Tribunal. Does he still believe this is the case?" Mr Hogan asked.
"His silence is fuelling the public perception that nobody is in charge," said Mr Hogan.
"Fianna Fail has regularly complained about the high cost of this Tribunal. It is now clear that the Taoiseach, Mr Ahern, is contributing to prolonging the Mahon Tribunal as well as delaying its work," he added.
Minister of State John McGuinness said yesterday that, in hindsight, the Taoiseach may have been wiser not to give his confessional TV interview of September 26, 2006, as its contents were now "part of the difficulty." Mr McGuinness suggested that people were making a measurement in relation to what was said by Mr Ahern then, and what had subsequently emerged.
"That's what's causing concern and confusion and sadness for people," the junior trade minister said.
- Senan Molony Deputy Political Editor
