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The tearful secretary and the cash scandal that could bring down Ahern

By David McKittrick, Ireland Correspondent
Saturday, 29 March 2008

The spectacle of Bertie Ahern's secretary reduced to public tears has inflicted substantial political damage on the Irish Prime Minister, whose personal finances are being investigated by a tribunal in Dublin.

The secretary's near-breakdown under cross-examination produced both a wave of public sympathy for her and a surge of anti-Ahern feeling, the allegation being that she had been pushed to carry the can for her boss. Now her discomfiture and the legal drama is having political repercussions, with Mr Ahern's coalition partners, whose support he relies on to stay in power, demanding he explain glaring discrepancies in accounts of his finances.

For years, a judicial investigation has been trying to trace the trail of Mr Ahern's money in the 1990s when he often operated without bank accounts.

The Taoiseach's secretary, Grainne Carruth, had a nightmare time in the witness box as bank records were produced to contradict her sworn evidence that she had not lodged cash for Mr Ahern while serving as his constituency assistant.

The Prime Minister, too, has already testified that the lodgements, including an amount of £15,000, were his pay cheques.

Mr Ahern's Fianna Fail party, which legendarily values loyalty above almost all else, is so far not joining in the agitation about his finances. But it is noticeable that most ministers, far from providing the familiar chorus of support, have said little or nothing, apart from Noel Ahern, the Taoiseach's brother, who has dismissed the various allegations as "all innuendo". Events at the tribunal have heightened speculation that Mr Ahern, who won a third successive term in 2007, may step down sooner rather than later.

In the witness box, Ms Carruth broke down and admitted her evidence was "factually incorrect" after she was threatened with jail and shown incontrovertible evidence that she had made the lodgements. She said she "shook for two hours" after being shown the documentation, adding: "I can't dispute it. It's here in black and white in front of me. I don't recall it but it is here in black and white in front of me." Fighting back tears, she said: "I'm hurt and I'm upset." Asked by the tribunal chairman if she wished to consult her solicitor, she replied in a whisper: "I just want to go home."

Ms Carruth's public humiliation and distress have rebounded badly on Mr Ahern. Her emotional reactionstarkly contrasted with the performance of many wealthy individuals who had been asked to explain donations to Mr Ahern. Some brazened it out with versions of events which seem suspicious and implausible. A widespread perception is that some of them care little whether or not they are believed, so long as wrong-doing cannot actually be proved against them.

Several cloudy episodes have not been explained satisfactorily. Mr Ahern, who cast himself as a politician uninterested in amassing wealth, has been involved in various large transactions. For instance, other tribunal sessions have been told of a Manchester-based Irish businessman bringing £28,000 in sterling notes to Mr Ahern in a briefcase.

Mr Ahern has staunchly defended his actions on television, in the Irish parliament and at the tribunal. He is to appear again at the tribunal within weeks, when he can expect to face the closest of questioning .

His coalition partners are for the first time expressing concern , after opposition taunting that they had been strangely silent. On Thursday Mary Harney, of the Progressive Democrats said: "There is considerable public disquiet as a result of Grainne Carruth's evidence and that public disquiet needs to be dispelled quickly."

The Green party leader, John Gormley, added: "There is evidence of growing public interest in this issue and there are concerns. More information from the Taoiseach would help here. I think he knows it's in his best interest and that of his party and the country at large that a clarifying statement is made."

The Labour leader, Eamon Gilmore, said: "The country is now being swept by a tide of public scepticism and disbelief that has robbed Mr Ahern of all political credibility and authority."

Opposition leader Phil Hogan, said: "The public concern with these issues did not begin the day the Taoiseach shamefully hid behind his constituency secretary and forced Grainne Carruth into an impossible position."

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