£10,000 cheque part of start-up capital

A cheque for £10,000 from multi-millionaire blood-stock breeder and former senator Mr John Magnier to the then chairman of Aer Lingus, Dr Michael Dargan, formed part of the start-up capital of Celtic Helicopters in 1985, counsel for the Moriarty tribunal, Mr John Coughlan SC, said yesterday.

The cheque was lodged to an account in Guinness & Mahon bank controlled by the late Mr Des Traynor. Mr Coughlan said the payment was a legitimate payment to Dr Dargan from business dealings he had had with Mr Magnier's Coolmore Stud. Dr Dargan, Mr Coughlan said, had no knowledge as to how the cheque came to be lodged to the account. He had said it was never his intention that the money should be invested in Celtic Helicopters. Mr Coughlan gave no further details.

Mr Magnier is a wealthy businessman who was appointed to the Seanad by Mr Charles Haughey in 1987. He is a partner in Coolmore Stud, Co Tipperary, and a friend of Dr Michael Smurfit and Mr Dermot Desmond.

Dr Dargan has had a long and successful career as a businessman. He was chairman of Aer Lingus in 1985, when the cheque was issued, having resigned as chief executive the year before. He was chairman of Cement Roadstone Holdings from 1973 to 1987, and has served on the board of a number of companies, including the Bank of Ireland. He lives in Balgriffin, Co Dublin, and is involved in the blood-stock industry. He is a director of Goff's Blood-stock Sales Ltd.

Last night, Dr Dargan said he would deal with the payment when he was called before the tribunal, probably today. He said he never made any contribution to Celtic Helicopters "or to any of the affairs of Mr Charles Haughey". He was never asked to.

The £10,000 formed part of £160,000 used to set up Celtic Helicopters. The tribunal has heard that £80,000 of this came from a number of investors, including Mr Seamus Purcell, the late Mr P.V. Doyle and Mr Joe Malone. Mr Malone was then on the board of Aer Lingus, as was Mr Traynor. Celtic Helicopters is a competitor of the Aer Lingus subsidiary Irish Helicopters.

Evidence was heard yesterday from Ms Sandra Kells, finance director with Guinness & Mahon bank. She said that Mr Traynor opened an account in the name of Amiens Securities in January 1985, and closed it in the following April. On March 26th, March 27th and March 28th, 1985 there were five lodgements totalling £75,000. One was for £10,000 and was the cheque from Mr Magnier. The second, for £15,000, came from a sterling account in the Ansbacher deposits.

The third and fourth were lodgements of £10,000 and £25,000, both from a sterling account in the Ansbacher deposits. On March 28th, a lodgement of £10,000 was made. This money came from a Guinness & Mahon account in the name of Purcell Exports Ltd. The £75,000 lodged was then transferred to an account in the name of Celtic Helicopters with Guinness and Mahon bank. A further £5,000 deposit to the Celtic Helicopters account came from the former Minister for Health, Dr John O'Connell.

At the same time, Mr Traynor negotiated an £80,000 loan from Guinness & Mahon bank. This was the second half of the £160,000 used to set up the helicopter company. A note from the Guinness & Mahon credit committee recorded that a number of investors, including Mr Purcell, Mr Malone and the late Mr Doyle, were involved.

Evidence was heard from a former official with Smurfit Paribas, Mr Michael Curneen, who met the two directors of Celtic Helicopters in 1986. Mr Ciaran Haughey and Mr John Barnicle were looking for a £90,000 leasing facility. They discussed their business for over an hour with Mr Curneen, who subsequently in a memo wrote that Mr Charles Haughey owned 12.5 per cent of the company.

Mr Barnicle told the tribunal he was certain that neither he nor Mr Ciaran Haughey had told Mr Curneen this and that it was not the case. Mr Curneen said his note was based on what he had learned at the meeting. Mr Barnicle also said Mr Charles Haughey pre-purchased £50,000 worth of flying with the company in February 1992. The booking was under Mr Haughey senior's code-name, Gary Heffernan.