Minister for Labour

In 1987, Fianna Fáil returned to power as a minority government.^[20] Ahern became Minister for Labour, which was not considered an important portfolio. In the following years, the department was important in stimulating Ireland's ailing economy.^[21] On behalf of the government Bertie Ahern negotiated the first national wage agreement between unions and employers, The Programme for National Recovery. This and the subsequent national wage agreement came to be known as the 'Irish model' and have been adopted by a number of European countries^[22]

In 1989, Haughey called an early general election. Fianna Fáil lost seats and was forced into a coalition government with the Progressive Democrats.^[23] Ahern retained his position as Minister for Labour in the government of the 26th Dáil. In 1990, Ahern negotiated the Programme for Economic and Social Progress.

In 1990, Ahern was campaign manager for the presidential bid of his cabinet colleague, Brian Lenihan.^[24] It proved to be Ahern's least successful campaign as the apparently unbeatable Lenihan lost to Labour Party candidate Mary Robinson. Ahern was damaged in the short term by being seen as the first Fianna Fáil presidential election campaign manager to lose a presidential election.

In 1991, the Fianna Fáil–Progressive Democrats programme for government was reviewed. Ahern was a key player in these talks yet again. His involvement prompted Haughey to remark of Ahern:

He's the most skilful, the most devious, the most cunning of them all.^[25][26]

Minister for Finance

In November 1991, Reynolds, then Minister for Finance, launched a leadership challenge to Haughey. Ahern publicly backed Haughey.^[27] The challenge failed and Reynolds and his supporters were dismissed from the cabinet. In the reshuffle that followed, Ahern became Minister for Finance. According to statements given by Ahern while serving as Minister for Finance, he did not hold a personal bank account.

Reynolds succeeds

In early 1992, Charles Haughey resigned as Taoiseach. Ahern was encouraged by Haughey and others to bid for the position. He was apprehensive, and remained out of the contest, allowing Reynolds to become party leader and Taoiseach. It is believed that Reynolds and Ahern struck a deal in which Ahern would withdraw and thus remain in the cabinet, to succeed subsequently. Ahern and Michael Woods were the only two senior members to remain in the new Reynolds cabinet, with Ahern retaining his Finance portfolio.

Following the 1992 general election, Fianna Fáil formed a coalition government with the Labour Party. This lasted until 1994, when the Labour Party withdrew from government, due to unhappiness with Reynolds's proposed candidate for President of the High Court. Ahern briefly succeeded Labour leader Dick Spring as Tánaiste. However, the government fell after a motion of no confidence, proposed by Fine Gael and Leader of the Opposition John Bruton, seconded by Fianna Fáil's former coalition partners the Labour Party. Reynolds resigned as Taoiseach and Fianna Fáil leader.

During 1993, while he was Finance Minister, Ahern accepted payments of IR £39,000 from various businessmen: see below for details. These payments did not become public knowledge until 2006.

In 1993, Ahern said in an interview, that tax cheaters would be jailed.^[28]

He is also under scrutiny from the Mahon Tribunal for this cash payment and subsequent revelations in May 2007, of cash received from businessman Micheál Wall.

First term (1997–2002)

Early issues

Ahern shaking hands with then President of the European Commission Jacques Santer in 1997

Ahern with President Bill Clinton in 2000

Ahern's first government saw some teething problems during its first six months. Firstly, Ahern tried to nominate David Andrews as Minister for Defence and as a Minister of State at the Department of Foreign Affairs. This was unconstitutional as one Minister cannot be subordinate to another.

Secondly, in July, Charles Haughey gave evidence to the McCracken Tribunal on corruption confirming that he had received IR£1.3 million (€1.7 million) in gifts from businessman Ben Dunne, which he had previously denied. This damaged Haughey's reputation more than the Government's.

Thirdly, earlier allegations resurfaced about Ahern's Foreign Minister, Ray Burke. Burke eventually admitted to receiving IR£30,000 (€38,000) in a corrupt payment and chose to resign. Arising from those two matters, the government established the Moriarty Tribunal and the Flood Tribunal.^[30] One of the high points of the first six months was the renewal of the Provisional IRA ceasefire, which paved the way for resumed negotiations in Northern Ireland.

Second term (2002–2007)

US President George W. Bush, UK Prime Minister Tony Blair, and Ahern at Hillsborough Castle in Northern Ireland on 8 April 2003.

Controversy arose when it was announced shortly afterwards that financial cutbacks were needed due to the drop in the international and Irish economies. This contradicted Fianna Fáil's promise during the election campaign when Finance Minister McCreevy was quoted several times saying that "no cutbacks, secret or otherwise, were planned". The government was accused of lying to the public, particularly concerning the war in Iraq (see below). The Government's rating fell badly in opinion polls and Ahern's popularity dropped to its minimum.

Another issue in the government's agenda for 2002, was the upcoming 2002 Referendum nicknamed "Nice 2", this was a second attempt to pass the Treaty of Nice.

During 2003, the government was subject to more controversy when it became public that US military aircraft, carrying large numbers of troops, were refuelling at Shannon Airport, despite widespread opposition to the 2003 Invasion of Iraq. Ireland's policy since the foundation of the State has been to be a neutral party in any conflict. The Government had maintained that troops had not used Shannon but when this was disproved, it then claimed that such permission had been available for 50 years.

The drop in opinion poll ratings for Ahern and his government after the 2002 election, was followed in 2004, by Fianna Fáil's worst local election results in 80 years. Despite speculation, no leadership challenge occurred and Ahern recovered in the polls. His reputation for inaction in changing cabinet Ministers ended with his long-heralded 2004 Cabinet reshuffle in which he failed to sack Séamus Brennan from the cabinet. The reshuffle was not as extensive as some had hoped as only three new members entered government.

The unpopular phase seemed short-lived as the government rearranged its priorities and the economy grew. A notable law enacted by this government was the ban on smoking in workplaces and enclosed areas in March 2004. Improvements had been made in the transport infrastructure with the launch of the Luas light rail system in Dublin, many new motorways being built and the break-up of Aer Rianta, the state-owned Airport Management company.

President George W. Bush accepts a bowl of shamrock from Taoiseach Bertie Ahern during a ceremony celebrating St. Patrick's Day in 2005.

In November 2004, Ahern celebrated ten years as leader of Fianna Fáil. In April 2006, he became the second longest serving Taoiseach, after Éamon de Valera.

One of Ahern's achievements in 2004, was his Presidency of the European Council,^[40] during which EU leaders agreed a European Constitution, there was recovery in EU-US relations, the EU formally admitted 10 new members, and selected José Manuel Barroso as President of the European Commission. Briefly, it appeared as if Ahern himself might become President of the European Commission, however, he declined in favour of domestic politics. The treaty was subsequently defeated in referendums in the Netherlands and France.

Ahern's government spent €52 million on the Nedap Electronic Voting system. This was challenged as being insecure and could have been tampered with to change results.^[41]

His coalition partners in government, the Progressive Democrats, said that he had questions to answer as details of an £8,000 (€11,800) payment for speaking engagements, in Manchester in 1994, emerged. The continued appearance of details of his appearances in Manchester and the names of those who were present at functions threatened to destabilise his coalition government, especially so when it transpired that one of the businessmen Micheál Wall subsequently sold a house to Ahern. The strains in the coalition eased after Ahern apologised for the second time in the Dáil and agreed to tighten up on ethics legislation.^[42]

The Moriarty Tribunal^[43] reporting in December 2006, criticised Ahern for having signed blank cheques for the then party leader Charles Haughey, who misappropriated taxpayers' funds for personal use. The disbursement of funds to Fianna Fáil and their investigation by the tribunal have raised questions of the involvement of Ahern in the administration of these funds.

In May 2007, he became the first Irish leader to address a joint session of the UK Parliament.^[44]

Third term (2007–2008)

Ahern at the World Economic Forum in Davos, January 2004.

Following the general election of 2007 Ahern was elected to a third term as Taoiseach, leading a rainbow coalition of Fianna Fáil, the Green Party and the Progressive Democrats, and also supported by several Independent TDs. This was the first Rainbow coalition comprising Fianna Fáil, with all their previous coalitions comprising just one partner.

Requiring 83 seats to return the government, Ahern's options were to attempt to govern with the Progressive Democrats plus two "gene-pool"^[50] Independents (Jackie Healy-Rae and Beverley Flynn; both former Fianna Fáil members) and one or more of the other three Independents, Michael Lowry, Finian McGrath or Tony Gregory (both left-wing Independents). The other options were an alliance with the Green Party or the Labour Party. In the event, Fianna Fáil negotiated a programme for government with the Green Party and formed a new rainbow coalition with the Green Party and the Progressive Democrats, supported by Healy-Rae, Flynn, Lowry and McGrath.

Ahern's reputation was damaged by the accusation of cash gifts received that have transmuted to loans from businessmen. His reputation as the Teflon Taoiseach (no allegation of unethical behaviour had stuck to him until September 2006) was damaged. He was criticised in the foreign press as well as in the Irish media.^[51][52]

To the surprise of many observers, polls taken during and after the payments' crisis indicated a sharp rise in support for the Ahern government and a corresponding fall in support for the Opposition parties. While 55–64% of the public believed that he was wrong to accept the payments, support for his party rose to 39–42%, while support for the main Opposition parties Fine Gael and the Labour Party fell to 20–26% and 10–11%. Two-thirds believed he should not have resigned. The polls provoked complaints from the media.^[53][54] The Irish Times commented they were a "poor reflection of ourselves".

Ahern stated in an interview in the Village on 22 May 2007, that he intended to retire from politics when he turned 60 years of age. He stated this would mean standing down as Taoiseach before the end of the Dáil term, which would have ended in 2012 at the latest.^[55]

On 4 July 2007, Ahern stated at a conference in County Donegal, that he did not understand why people sitting on the sidelines, "cribbing and moaning" about the economy, did not commit suicide.^[56][57] These comments came at a time when Ireland's economy was beginning to falter,^[58] and with property prices falling by up to 10% as part of the Irish property bubble. Ahern later accepted responsibility for the overheating of the property sector but took no responsibility for the failings of the Central Bank of Ireland.^[59]

In an opinion poll taken in September 2007, subsequent to Ahern's initial two-day appearance at the Mahon Tribunal, fewer than one-third of voters believed Ahern's accounts of his finances.^[60]

Opposition parties had previously been muted in their reaction but in September 2007, Labour Party leader Eamon Gilmore, called for Ahern to resign in light of his appearance at the Mahon Tribunal and on 23 September 2007, Leader of the Opposition Enda Kenny was heavily critical of the "rambling, incoherent" answers offered by Ahern to the Mahon tribunal in September 2007. Kenny said there was now a situation whereby a witness before a tribunal, testifying under oath, "is continually changing his story". It "create[s] a credibility problem and that's the issue the Taoiseach has got to deal with".^[61]

On resumption of the Dáil on 26 September a motion of no confidence in Ahern's government was moved by Fine Gael leader Enda Kenny and seconded by the Labour Party, based on Ahern's statements to the Mahon Tribunal. The Green Party, PDs and Independent TDs who supported the government voted for Ahern in the motion of no confidence. In a stormy^[62] three-hour Dáil debate, Ahern was accused of telling "lies" and was called upon to resign.

The no-confidence motion was defeated by 81 votes to 76, with all six Green Party TDs, two PDs and four Independents, Finian McGrath, Beverley Flynn, Michael Lowry and Jackie Healy-Rae voting with the Government. In an opinion poll published^[63] in November 2007, some three-quarters of voters indicated that they did not believe that Ahern had given a full disclosure about his personal finances to the Mahon Tribunal. The opinion poll also showed more than half of the electorate believing that the whole episode was by then a serious political issue for Ahern.

A later opinion poll taken on 22 January 2008, on the issue of Mr Ahern's personal finances and tax liabilities, found that "78% of people do not believe he has given the full picture (up 6%) while just 14% believe he has given the full picture (down 3%)."^[64]

The Minister for the Environment and leader of the Green Party, John Gormley said on 22 February 2008, that revelations concerning the Taoiseach at the Mahon Tribunal were distracting from the work of government.^[65]

Opposition parties on 22 February 2008, branded the Taoiseach's financial affairs as a "national embarrassment", which should prompt his immediate resignation.^[66]

Grainne Carruth's acceptance as a matter of civil probability that she had lodged sterling sums to Ahern's account at the Drumcondra branch of the Irish Permanent Building Society in the 1990s had reportedly sent shock waves through the ranks of Fianna Fáil.^[67] On 27 March 2008, the unease at Ahern's declarations at the Mahon Tribunal, as contradicted by his former secretary at the tribunal, were highlighted when Progressive Democrat coalition partner leader Mary Harney, traditionally a stern supporter of her former colleague, called on Ahern to make a statement.

The disquiet within the coalition was further emphasised when Green Party leader John Gormley, said that Ahern should clarify the contradiction between his evidence and that of his former secretary Grainne Carruth.^[68][69]

An opinion poll published^[70] on 25 November 2007, showed that support for Fianna Fáil had dropped by seven percent, "following the announcement of large pay increases for the government and senior public servants against a backdrop of continuing economic uncertainty and high-profile failures in the health service."

On 2 April 2008, Ahern announced his intention to resign as Taoiseach and as leader of Fianna Fáil on 6 May 2008.

On 30 April 2008, in Washington D.C., Ahern became the sixth Irish leader to address the United States Congress.^[71][72] He is also the sixth person who has addressed both the UK Parliament and the United States Congress.^[73]

On 6 May 2008, he performed his last official duty as Taoiseach in opening the Battle of the Boyne visitors centre with then First Minister of Northern Ireland Ian Paisley.

Explanation for not reacting to property bubble

In May 2010, Ahern said of the property-based tax incentives which aggravated the Irish economic collapse that "We probably should have closed those down a good bit earlier but there were always fierce pressures, there was endless pressures to keep them. There was endless pressures to extend them." He stated that the pressure to retain such incentives had come from developers, owners of sites, areas that did not have the developments, community councils, politicians and civic society.^[76]

Ahern said that his decision in 2001, to create a new financial regulator was one of the main reasons for the collapse of the Irish banking sector, saying that "if I had a chance again I wouldn't do it."^[77] "The banks were irresponsible," he admitted. "But the Central Bank and the Financial Regulator seemed happy. They were never into us saying – ever – 'Listen, we must put legislation and control on the banks.' That never happened."^[78]

Pay-rises

On 25 October 2007, Ahern^[79] was criticised after the government accepted a recommendation from the Review Body on Higher Remuneration that senior civil servants and ministers receive pay increases.^[80][81] The pay-rise for his position (up €38,000 to €310,000 per annum), would have made it higher paying than that of the US President and made him the highest paid Head of government in the European Union.

Criticism from opposition parties concentrated on the timing of the announcement (following highly publicised budgetary concerns at the Health Service Executive) and the fact that Ahern's increase alone would amount to about four times the basic social welfare payment. On 12 December 2007, it was announced that the first part of the pay-rises would be deferred by a year, with the remainder paid in 2009 and 2010.

Attempt to take credit for the Gregory deal

Independent TD Maureen O'Sullivan, accused Ahern of attempting in his autobiography to take credit for the Gregory deal by claiming he was present in negotiations between Charles Haughey and Tony Gregory and that he had provided Haughey with estimates from Dublin City Council. The Gregory deal was an agreement negotiated between the independent socialist TD Tony Gregory and Fianna Fáil leader Charles Haughey in the aftermath of the February 1982 general election, which resulted in a hung Dáil. In return for supporting Haughey, Gregory was promised a deal worth 100 million pounds at the time, which was to be used to redevelop North Inner City Dublin and to provide a greater number of houses and employment in an area which was considered Ireland's poorest and most disadvantaged.^[82][83] Ahern had gone with Haughey to the negotiations with Gregory; he was immediately asked to leave by Gregory and was forced to wait publicly in his car outside for three and a half hours. Although both had been elected to the same constituency, they were fierce rivals and the relationship between them was often sour. O'Sullivan was an election agent for Tony Gregory and successor as a TD.^[84]

Admission of undeclared payments

Ahern was criticised by the Moriarty Tribunal for signing blank cheques for the then Taoiseach Charles Haughey, without asking what those cheques were for. Ahern told the tribunal that a policy of signing blank cheques was used on the Fianna Fáil party leader's account for reasons of "administrative convenience".^[85] In September 2006 The Irish Times printed claims allegedly leaked^[86] from the Mahon Tribunal that Ahern had received money from a millionaire businessman while Minister for Finance in 1993.

The editor of The Irish Times defended the publication as being in the public interest at a hearing of the tribunal, saying that it was not a party to the Supreme Court case which restrained the Sunday Business Post from publishing leaked documents. This order was directed against the Sunday Business Post but its interim order purported to restrain all media outlets from publishing confidential material from the inquiry.

Ahern has admitted that he did receive money but said on being interviewed that:

What I got personally in my life, to be frank with you is none of your business. If I got something from somebody as a present or something like that I can use it.

What Ahern said in 1996, while in opposition:

The public are entitled to have an absolute guarantee of the financial probity and integrity of their elected representatives, their officials and above all of Ministers. They need to know that they are under financial obligations to nobody. (Dáil Éireann transcript, December 1996)

This contradiction has been criticised in editorials in both the Irish Independent^[87] and The Irish Times^[88]

Six days after the payments were publicised, Ahern admitted in a^[89] television interview^[90] that he had received two payments totalling IR£39,000 (€50,000) in 1993 and 1994. Ahern regarded the money as a loan, but he conceded that no repayments had at that time (September 2006) been made and no interest has been paid. He said that he had attempted to repay it, but that his friends would not accept repayment. He claimed that he had "broken no codes – ethical, tax, legal or otherwise".

On 28 November 2007, former NCB managing director Padraic O'Connor at the Mahon Tribunal, "directly contradicted Mr Ahern's claims that long-standing friends gave him a loan just after Christmas 1993."^[91]

In the same interview, he also claimed that he received a payment of £8,000 from a group of 25 businessmen in Manchester on one occasion. He stated that this money was again unsolicited, that it was a gift and therefore not subject to tax as it had been received when abroad, and that it was paid to him after he gave an after-dinner speech at an ad hoc function. He claimed that the money was given to him as a private citizen, not to him in his then role as Minister for Finance, and that no other payments were received by him after speaking at other similar functions. The Irish Times reported on 30 September 2006, that part of this payment was actually a cheque drawn on NCB Stockbrokers, a large Irish company. In its final report, the Mahon tribunal found that, contrary to his sworn evidence, no 'dig-outs' in 1993 and 1994 were arranged to give money to Mr Ahern and that large dollar and sterling cash lodgements were made to his bank accounts in the mid-1990s.^[92] A number of his benefactors have received appointments as directors of State boards.^[93][94] Insisting that no favours had been offered or received, Ahern said:

I might have appointed somebody but I appointed them because they were friends, not because of anything they had given me.

Under the Standards in Public Office Commission's rules,

State appointments should be made on the basis of merit, taking into account the skills, qualifications and experience of the person to be appointed.

Members of Dáil Éireann must conduct themselves^[95]

in accordance with the provisions and spirit of the Code of Conduct and ensure that their conduct does not bring the integrity of their office or the Dáil into serious disrepute.

In the face of negative publicity, Ahern has repaid the monies advanced to him, with 5% interest, totalling €90,000.^[96]

On 3 October 2006, Ahern made a 15-minute statement in Dáil Éireann defending his actions in taking loans totalling IR£39,000 (€50,000) from friends in Ireland and £8,000 (€11,800) as a gift from businessmen in Manchester in 1993 and 1994.^[97][98][99] In his statement he apologised for the distress his actions had brought saying:

The bewilderment caused to the public about recent revelations has been deeply upsetting for me and others near and dear to me. To them, to the Irish people and to this house, I offer my apologies.

Confirmation of sterling cash lodgements

On 20 March 2008, at the Mahon Tribunal the disclosure, ^[100][101] of lodgements of £15,500 sterling into building society accounts of Ahern and his daughters was accepted as a matter of probability by Ahern's former secretary Grainne Carruth.

Previously in her evidence, Carruth, on 19 March 2008 had said, that she had not lodged sterling for Ahern, while she accepted (as a matter of probability), a day later, that she must have lodged sterling on Ahern's behalf based on the paperwork available although her recollection is that she never had sighting of sterling at any time.^[100]

Ahern had told the tribunal during his evidence in February 2008, that the lodgements to his and his daughters' accounts had come from his salary as a politician.

"No bank account"

Further questions were raised about IR£50,000 (€63,300) which he had lodged to his bank account in 1994. He claimed this was money he had saved over a substantial period of time (1987–1994) when he had had no active bank account. During this period he was Minister for Labour and subsequently Minister for Finance. He was asked by Labour leader Pat Rabbitte whether, in the absence of a bank account, he had kept the money in a "sock in the hot-press" and Socialist Party leader Joe Higgins asked if he had kept the money "in a shoe-box". Ahern replied that he had kept the money "in his own possession".

Payment in relation to house

On 5 October 2006, further information emerged^[102] in the Dáil that Ahern had bought his house in Dublin, from Manchester-based Irish businessman, Micheál Wall, who was at an event in Manchester in 1994, where the Taoiseach received a payment of GBP£8,000 (€11,800). This caused further tensions within the government coalition parties.

On 10 October 2006, the Taoiseach^[42] again told the Dáil that it was an "error of judgement" for him to have accepted loans and gifts for personal purposes in the early 1990s.

Ahern expanded on his apology to the Dáil of the previous week, which he described as unqualified. Ahern said there would now be a change in the ethics law requiring office holders offered a gift from friends to consult the Standards in Public Office Commission^[103] and to accept their ruling.

Money from developer

Allegations had been made that he had taken IR£50,000 (€63,300) from a property developer, Owen O'Callaghan, in return for favours at this time. Ahern won a libel action against a Cork businessman, Denis "Starry" O'Brien, defending himself against this allegation.

However, broadcaster Eamon Dunphy, has testified in the Mahon Tribunal that he was told by developer Owen O'Callaghan, that Ahern was "taken care of" to support a shopping centre development in the 1990s.^[104] This followed the initial allegations, denied by Ahern and O'Callaghan, by retired developer Tom Gilmartin, that O'Callaghan told him that he had given Ahern a payment of £50,000 in 1989, and a payment of £30,000 in 1993, in connection with a development of lands at Quarryvale, west Dublin. Gilmartin further alleged being told that O'Callaghan had paid Ahern in excess of £20,000 in relation to tax designation of a site in which O'Callaghan had an interest in Athlone, the designation having been Ahern's last act as Finance Minister, before the Fianna Fáil-led Government fell in December 1994.

Ahern was responsible for placing disgraced former Dublin West TD Liam Lawlor, as head of the Dáil Ethics Committee, despite having been told by Tom Gilmartin many years beforehand that Lawlor had corruptly demanded money and had thwarted Gilmartin's plans when Gilmartin refused to comply.

In March 2007, one of Ahern's Manchester benefactors, Paddy "The Plasterer" Reilly, was appointed as the Fianna Fáil director of elections, for Ahern's Dublin Central constituency.

In April 2007, it was alleged^[105] in a statement by his former official driver, that Ahern in 1994, while Minister for Finance, took a briefcase full of cash to Manchester. This has been denied by Ahern.

While the payment details initially seemed to damage Ahern's standing, the result of the 2007 general election, indicated that the damage was minor. In April 2007, an opinion poll found that nearly half of voters believed Ahern still had questions to answer over the payments controversy.^[106]

Money given to Celia Larkin

On 2 February 2008, it emerged at the Mahon Tribunal that a house was bought by Ahern's former partner Celia Larkin in 1993, with money donated to Ahern's constituency organisation in Drumcondra.^[107] There was no documentation to back up this loan to Larkin or to prove around IR£30,000 in other expenditure from this account.

Dublin businessman Tim Collins, has denied that Ahern was joint holder of the so-called BT account from which Larkin was loaned IR£30,000 without documentation to describe the loan agreement.^[108] Tim Collins denied that the BT account referred to Bertie and Tim, even though he operated a joint account with Des Richardson known as the DT account.^[109]

Appearance at the Mahon Tribunal

On 13 September 2007, Ahern commenced four days of testimony under oath at the Mahon Tribunal. On 13 September, Ahern admitted that he had not cooperated with the Mahon planning tribunal.^[110][111] On 14 September 2007, inconsistencies in Ahern's statements to the Tribunal emerged, after he changed his story on the infamous IR£25,000 dig-outs.^[112]

On 21 September 2007, Ahern again changed his story and said he could not remember key events at the centre of the controversy.^[113]

Tribunal Chair, Judge Alan Mahon, said there were "significant gaps" in the money trail provided by Mr Ahern which "would have made it impossible for the tribunal to follow the trail".^[114]

Judge Gerald Keyes accused Ahern of having no recollection of buying £30,000 of luxury items in the early 1990s.^[115]

Judge Mary Faherty, accused Ahern of giving "polar opposite" accounts of why he withdrew IR£50,000 from AIB in January 1995.^[116]

On 24 September 2007, there were further discrepancies, memory lapses and contradictions to his testimony under oath^[117] with Ahern agreeing with the assertions of the tribunal that there are inconsistencies and contradictions in his statements compared to bank records and the testimony of Larkin.^[118][119]

Journalist Vincent Browne, has asserted that "Ahern's numbers game just doesn't add up".^[120]

Again on 20 and 21 December 2007, Ahern spent two further days under questioning by the Mahon tribunal about his finances in the 1990s.^[121] In January 2008, it was revealed that Ahern was in discussion with the Revenue Commissioners about his liability for tax on the sums received in Manchester and on his tax clearance status as declared in 2002, before details of the Manchester payments were revealed.^[122][123] The then opposition leader Enda Kenny said it was not acceptable to have a Taoiseach who could not declare compliance with the tax codes.^[124]

On 12 February 2008, it emerged^[125] that the Mahon tribunal did not have all of the information provided to it, contrary to Ahern's assertion in the Dáil that he had provided all information to the tribunal. Ahern has taken a High Court action to prevent the tribunal from questioning him on the information that he released in the Dáil in 2006.^[126]

The total value of lodgements and other transactions involving Ahern was said to exceed £452,800. The lodgements and transactions occurred between 1988 and 1997, although the vast bulk of the money was lodged in the period to 1995.^[127]

On 4 June 2008, Ahern admitted that he knew about sterling deposits before his secretary's testimony,^[128] but said to laughter at his Tribunal appearance on that day that those deposits were winnings from horse racing.^[129]

Tax Clearance Certificate

The Standards in Public Office Commission was asked to investigate the Ahern's declaration of tax compliance after the 2002 general election.^[130] In mid-January 2008, it emerged in the press,^[131] reportedly as leaks from parties to the Mahon tribunal, that Ahern would not be in a position to present a Tax Clearance Certificate to the Dáil, as required under ethics legislation. This certificate is issued by the Revenue Commissioners to persons who have shown themselves to be tax compliant. To meet legal requirements, this certificate should have been presented to a Dáil committee by 31 January 2008, by all those elected to the Dáil. A caveat allowed that in the absence of this, a certificate stating that the Dáil member was in negotiation with the Revenue Commissioners would suffice. An inability to declare tax compliance by a prominent individual such as Ahern would prove highly embarrassing, and could potentially have had more serious repercussions. The Standards in Public Office Act (2001) determines the tax clearance requirements for persons elected to the Oireachtas, and others. The making of a false declaration would also be an offence.^[132]

Ahern's inability to furnish a tax clearance certificate led to further calls for his resignation. He was, at the time, the only member of the Oireachtas not to have a tax clearance certificate.^[124] On 14 January 2008, while on a visit to South Africa, Ahern accused Enda Kenny, Leader of the Opposition of telling^[133] a "bare-faced lie" about Ahern's tax situation. Ahern and Fianna Fáil's response has not addressed the issue, but has attacked the leaking of Ahern's tax affairs so as to attempt to enable the non-compliance issue to be ignored.

Ahern admitted to the Mahon Tribunal on 21 February 2008, for the first time, that he did not pay tax on substantial payments that he received when Minister for Finance in the 1990s.^[134]

Mahon Tribunal Final Report

The Mahon Tribunal report was made public on 22 March 2012.^[135] A key finding was that:

Much of the explanation provided by Mr Ahern as to the source of the substantial funds identified and inquired into the course of the Tribunal's public hearings was deemed by the Tribunal to have been untrue.

— Mahon Tribunal

While the report did not accuse Ahern of corruption, it stated that it totally rejected his evidence and that of related witnesses about the sources of monies in his own and related bank accounts, and that Ahern failed to truthfully account for a total of IR£165,214.25 passing through accounts connected with him.^[136][137]

In 1993, the then Taoiseach Albert Reynolds and Ahern, who was then Minister for Finance, wrote to developer Owen O'Callaghan seeking a substantial donation. At the time O'Callaghan was heavily involved in lobbying for state support for a stadium project at Neilstown, County Dublin. According to the report, O'Callaghan felt compelled to donate a sum of IR£80,000 to Fianna Fáil to get funding for the stadium. The Mahon Tribunal said it did not find the payment to be corrupt. However, the report said pressurising a businessman to donate money when he was seeking support for a commercial project was "entirely inappropriate, and was an abuse of political power and government authority".^[138]

Family

In 1972 Ahern met Miriam Kelly, a bank official who lived near the Aherns' family home. They were married in St. Columba's Church, Iona Road in 1975.^[185] Ahern has two daughters from his marriage: Georgina and Cecelia. Georgina is married to the Westlife member Nicky Byrne.

Ahern and his wife separated in 1992. Until 2003, Ahern maintained a relationship with Celia Larkin. Ahern was the first, and is the only, Taoiseach to have a legal separation from his wife.^[186]

Larkin was appointed to the board of the National Consumer Agency in July 2005, on the recommendation of the Department of the Taoiseach.

Ahern is an enthusiastic and vocal fan of sport. He is a supporter of Dublin GAA and attends inter-county matches in Croke Park.^[13] He also supports English soccer outfit Manchester United Football Club and attends matches at Old Trafford, as well as Scottish soccer outfit Celtic Football Club and rugby matches at the Aviva Stadium. He appeared as a pundit on RTÉ Two's The Premiership programme in 2001.^[14]

Religious faith

Ahern is a practising Roman Catholic. He attends Mass every^[187] Saturday evening in St Mary's Pro-Cathedral in Dublin. However, he was publicly criticised by Cardinal Desmond Connell, then Archbishop of Dublin, for his public relationship with Larkin.

Ahern has said that he lives by the Ten Commandments, the Beatitudes and his own conscience, and hopes to get to heaven when he dies. Speaking to Gay Byrne in RTÉ's The Meaning of Life series, Ahern described himself as a regular Mass-goer, but said he had not been to Confession for 40 years. In a lengthy interview, Ahern said that he and the former DUP leader Ian Paisley, bonded over their shared faith when they had their first formal meeting together. The meeting took place in January 2004, at the Irish Embassy in London. He recalled how Paisley began a prayer in the Irish Embassy and he joined in with him. He said the prayer was "like our Confiteor" and officials had wondered why they had spent so much time alone. The pair started discussing their values and the rules by which they lived. His government came under severe criticism for the deal they made with the religious orders, capping their contribution to the redress board at €128 million while taxpayers will have to pay out €1 billion.^[188]

As a Catholic, Ahern said he wanted the church "to do well" but that it could not retreat behind canon law. "There was one time when the church tried to put up the defence of canon law and my colleagues just looked up to the sky and thought they were joking. Unfortunately, they weren't joking, they made bad decisions." Ahern said he was convinced that life "did not end at the graveyard" and he often prayed to dead relatives for guidance. He used Mass as an opportunity to pray for people in trouble and stayed off alcohol in November and at Lent. He rationalised inexplicable events, such as the death of a young person, by stating that God "cannot influence every single thing". He said he received a "fair amount of hate mail" about "living in sin", but it upset other people more than it did him and he admitted that he had not lived up to his parents' "stereotype" of married life.^[188]