Committee Reports::Final Report - Northern Ireland Relief Expenditure::13 July, 1972::Appendix

(Note. The Committee requested witnesses to furnish preliminary statements. The replies received are printed hereunder in alphabetical order of surname).

1. Blaney, Mr. Harry J.

It was with amazement that I read your letter of the 19th February* since it implies that your committee believes the lying statement of Supt. Fleming which attempted to involve me in the disbursement of the Government £100,000 Grant-in-Aid to the Six Counties.

As already stated, I had no hand or act or part in disposing of this Government Aid, and I reiterate emphatically my earlier statement that Mr. Fleming is a liar.

Harry J. Blaney

2. Blaney, Deputy Neil T.

I am in receipt of your letter* i/c above. I have no documents or evidence to tender to your Committee.

Neil T. Blaney

3. Brady, Mr. Séamus J.

Submission by Seamus J. Brady, St. Anthony’s, Nashville Road, Howth, Co. Dublin, by way of a statement to the Dáil Committee of Public Accounts.

I would refer the Committee to the submission† made to it by the Department of Finance and in particular to a clipping in that submission from the Sunday Independent of May 10, 1970, in which an attack made personally upon me by Deputy Garrett Fitzgerald is reproduced. That attack was made under privilege in Dail Eireann, and I now welcome the opportunity of replying to it under like privilege.

I am not and have never been employed by Deputy Neil Blaney as a public relations officer; I have known him since childhood and have always given him help or advice from my professional experience whenever he asked for it as a friend.

My association with Government publicity began in March, 1966, when the late Donagh O’Malley, then Minister for Health, invited me to accept the post of part-time publicity officer to the Department of Health. This was a post which was created by Deputy Tom O’Higgins, when he was Minister for Health in the 1954-57 Inter-Party Government, and to which at that time Mr. Seamus Kelly of the Irish Times was appointed. The post had remained vacant after the change of Government in 1957. I accepted Mr. O’Malley’s offer and subsequently, when he was transferred to the portfolio of Education in September, 1966, I was seconded to the Department of Education as part-time publicity officer for that Department.

I resigned voluntarily some months after the death of Donagh O’Malley as it had become obvious that the work entailed in publicity for the Department of Education required a full-time officer. My fee on resignation was the same as it had been when the post was first created in 1954, namely £600 a year.

I have never been employed in any capacity by any other Government Department or Minister.

I have been engaged professionally by the Fianna Fail Party as press relations officer for three of the Party’s Ard-Fheiseanna. I was also engaged to assist in publicity work for Fianna Fáil during two general elections and in the national referendum, and in all cases on a professional part-time basis.

I have 30 years’ experience in professional newspaperwork and for the past two years have been a partner in a public relations consultancy. The criticism made of me by Deputy Fitzgerald is damaging to me professionally, and in the ordinary way, were it not made and here repeated under Dail privilege, would constitute grounds for libel. I would, therefore, ask the Committee’s indulgence to reply to this criticism.

Deputy Fitzgerald was referring to Friday, May 8, 1970, when Mr. Paddy Kennedy, M.P. gave a press conference in the Shelbourne Hotel sometime before noon that day. Sometime that afternoon, Captain James Kelly issued a statement at his home, and at 5 p.m. that afternoon a press conference was given in the Gresham Hotel by a number of representatives of Northern delegations which, over the months previous, had travelled to Dublin to meet the Taoiseach and several of his Ministers.

I was engaged professionally to arrange the press conference in the Gresham Hotel and attended there during the conference. I had no part in the press conference arranged by Mr. Kennedy. I left the Gresham Hotel at approximately 7.30 p.m. to attend a meeting of the Dublin North-east Comhairle Dail Ceanntair of Fianna Fail of which I am a member. Shortly before 9 p.m. I had a call by telephone from my wife to say that Captain Kelly’s wife had asked if I could go to their home in Terenure to help persuade newspaper cameramen to leave the outside of the house. I drove to the Kelly home and advised Captain Kelly, then accompanied by his solicitor, to permit cameramen to take pictures. He agreed and the cameramen then left.

I had no knowledge of Captain Kelly’s statement until I saw it on television that evening. I am informed by Captain Kelly that earlier that evening he personally contacted Mr. Richard Walsh of the Irish Times, Mr. Mike Burns of RTE and a BBC man who was in Dublin that day, and invited them to his home where he made his statement.

I apologise to the Committee for setting out these points which are not relevant to their proceedings, but, since the matter has been raised by the Department of Finance in its submission, and since I accept that Deputy Fitzgerald may have been acting on misinformation, I feel that I am owed the right to clear my name of any imputation wrongly ascribed to me.

In regard to the matters about which I feel I can be of help to the Committee, I wish to stress that I have kept in my possession all relevant documents and am glad to make these available.

I should begin by pointing out that I was asked to return from a visit to relatives in Derry to join the Government’s propaganda unit and duly reported to Mr. Eoin Neeson, Director of the Government Information Bureau, at 10 a.m. on Tuesday, August 19th, 1969. I was instructed to operate in the Six Counties on a fulltime basis to collect information and data for the propaganda unit. My fee for this fulltime work was £200 a month, which represented a considerable loss to my consultancy firm, since it is economically necessary for a consultant in private practice to gross not less than £500 a month.

Following a private report on the Northern situation which I submitted to the Director of the Bureau for the Taoiseach, I was asked to meet the Director of Army Intelligence, Colonel Michael Hefferon, and his personal assistant, Captain James Kelly, at McKee Barracks. This meeting took place with the full consent of Mr. Neeson. At that meeting I met both Captain Kelly and Col. Hefferon for the first time, and was asked to assist Captain Kelly by introducing him to various contacts in parts of Northern Ireland. This I agreed to do.

I should make it clear that I was fully aware of the nature of Captain Kelly’s work for army intelligence and I never, therefore, became involved in his inquiries: when I introduced him to certain persons in the Six Counties, I always took care to withdraw from their conversation. On one occasion, at a meeting with a certain person outside a farmhouse, I spent two hours walking up and down a country lane while Captain Kelly spoke in private with this person in my car.

During the last weeks of August and the beginning of September, it was put strongly to me by prominent members of various defence committees in the North that while propaganda beamed at the outside world was one thing, there was an urgent need for propaganda inside the Six Counties aimed at countering the Stormont propaganda machine. I mentioned this to Mr. C. J. Haughey when I met him casually sometime early in September and he said he would discuss it with Mr. Neeson.

Some days later I discussed this matter with Mr. Neeson and with his knowledge I made inquiries with a number of printers to work out costings for a weekly newspaper. At the same time I was instructed by him to arrange for the printing of two booklets dealing with the Northern situation; one was an account of the August pogrom in Belfast, entitled “Terror in Northern Ireland”, while the other was an account of attacks on various civil right demonstrations by a civil rights leader (name supplied). During my work in the North for the Bureau, I had met the civil rights leader concerned for the first time and had taken down on tape his account of various civil rights incidents in which he had been either involved or had witnessed; these tapes were transcribed by the typing staff in Government Buildings and edited for print by me.

Mr. Neeson instructed me to arrange to have both booklets printed privately on the basis that the Government would purchase half the print order in each case and distribute these copies abroad through the propaganda unit. The balance in each case was to be given free to the author in lieu of any fee. The price to the Government was to cover the entire cost of the printing.

I would refer the Committee to the submission made to it by the Department of Finance and a letter therein from Mr. N. S. O Nuallain of the Department of the Taoiseach to Mr. C. H. Murray, Secretary of the Department of Finance, in which it is stated: “Furthermore, the Director of the Bureau had no advance information of the proposed activities of Mr. Brady in the period subsequent to his resignation and that, consequently, the question of support, financial or otherwise, for any of his subsequent activities did not arise.”

I submitted my resignation on September 21, 1969. The production of the booklets referred to was not completed until October, 1969, and I arranged for copies to be delivered to the Bureau propaganda unit headquarters at 65 Merrion Square.

On instructions from Mr. Neeson I sent him two bills for these printings—one setting out the true cost of production and the other expressing this cost in terms of the sale of the books to the Government.

I found it difficult to get payment for these printings and wrote to Mr. Neeson on January 15, 1970. I subsequently was paid by the Department of the Taoiseach in February, 1970.

January 15, 1970.

In the two weeks prior to my resignation from the propaganda unit, I was actively engaged in contacting writers from the North for the proposed newspaper and in obtaining firm costings from a printer. I was also asked by Colonel Hefferon, Director of Army Intelligence, to prepare costings for a possible mobile radio station beamed from the Border into Northern Ireland if the Government decided to provide such a propaganda station to supercede the clandestine radio stations then operating inside “Free Derry” and “Free Belfast”.

I prepared these costings and discussed both projects with Mr. Neeson. So far as I can recollect this discussion took place in Mr. Neeson’s office on Thursday, September 18th, 1969. I have a clear recollection that my involvement in both projects was discussed between us on the basis that, as in the case of the production of the two booklets, the Government and the Information Bureau would not be publicly connected with such projects but would privately support them, financially and otherwise.

I submitted my resignation to Mr. Neeson as a member of the propaganda unit on September 21, 1969. My reasons for this were two-fold: I did not see that I had any further purpose in the unit, and my involvement in the proposed newspaper, and in any proposed radio service, would require to remain unconnected with the Bureau.

I received a letter from Mr. Neeson dated September 23, 1969, in reply to my resignation letter. I met him by appointment for lunch on September 25th, 1969, in the Royal Hibernian Hotel, and enclose copy of letter which I sent to him that same afternoon.

dated September 23, 1969.

under date September 25, 1969.

The discussion at the lunch meeting between Mr. Neeson and myself was wholly concerned with the newspaper, which was now to be titled “Voice of the North”. Mr. Neeson arranged with me that my fee would remain at £200 per month and that I should submit a weekly true bill to him of all expenditure in connection with the newspaper; but, he also instructed me to submit to him a covering bill each week for the amount made out as against “preparation of manuscripts for the Bureau”. He also offered to provide pictures and material from the propaganda unit if required for the newspaper.

I did use certain material from the Bureau. As evidence of this I submit copy of a letter which I wrote on October 6, 1969, to Mr. Tim Dennehy, then acting in charge of the photo library in the Bureau propaganda unit. I also enclose a copy of the first issue of the Voice of the North, which used the picture concerned on Page One.

propaganda unit.

On the morning of September 25, 1969—the day on which I met Mr. Neeson for lunch at his invitation to go into details of the Voice of the North—I called at the Bank of Ireland branch in Ballymun, Dublin, where I have my personal account and where my firm has its account. I opened a special account there with £10 of my own money for the Voice of Ulster Publications and arranged that cheques drawn on this account should for safety purposes be signed on two signatures—that of myself and my partner, Mr. Karl Johnston. Mr. Johnston took no other part in the project.

On October 31st, 1969, since no bills had yet been paid by the Bureau, but since I had no reason to doubt at that time that these would be paid, I arranged to lodge £650 from my firm’s account to the Voice of the North account. This was to meet bills which were due.

Some days previous to October 31st, 1969, I had gone to see Mr. Haughey, then Minister for Finance, about payment of these bills more promptly. I went to Mr. Haughey because I was finding some difficulty at this time in contacting Mr. Neeson, who was abroad during this period as I recollect.

Following this meeting with Mr. Haughey, I wrote to Mr. Neeson. I also enclosed in the letter a statement for monies due to me under the cover arrangement which Mr. Neeson had instructed me to follow.

under same date.

On November 3rd., 1969, I submitted a true bill of expenditure to date on the newspaper to Mr. Neeson, I enclose a copy of this statement, but I have crossed out the names of certain persons within another jurisdiction.

Since I heard nothing by reply from Mr. Neeson, and was unable to contact him by telephone, I again called to see Mr. Haughey. He said he would raise the matter with the Taoiseach. He later informed me that the Taoiseach had decided that no monies would be advanced from the Bureau propaganda unit for the newspaper.

I felt very angered at the manner in which I had been treated in this matter. I had organised distribution for the newspaper throughout the North, I had personally produced three issues of the newspaper to date; I had put my firm to the expense of paying £650 towards the project, apart from the loss of my own earnings in time, travel, etc. Moreover, a committee had been set up in the North, composed of prominent members of the defence committees in Belfast, Derry and Tyrone, to run the newspaper, and a managing editor had been appointed in the North.

I at once contacted Captain James Kelly, whom I was aware was in close contact with the Northern defence committees and told him to advise them that the newspaper could not be continued.

On November 6th or 7th, 1969, he came to me with £600 in cash. He said that his contacts in the North wished the newspaper to continue as they considered it was performing a useful propaganda exercise in highlighting grievances and abuses which the ordinary Press was ignoring. He told me they were prepared to subsidise the cost of production of the newspaper. I lodged this £600 in the Voice of the North account.

I offered to give my personal services voluntarily to assist the committee running the newspaper to make it a viable project if possible; but I warned them at a meeting (held in the North) that without advertising revenue it would be necessary to subsidise it for some considerable time. The committee arranged that copies be sent each week to each M.P. at Westminster in an effort to counter Unionist propaganda.

In December, 1969, I received a written invitation from Mr. Neeson to attend a dinner function in Dublin to wind-up the propagada unit with a thank-you from the Taoiseach. I enclose the invitation.

Captain Kelly continued to provide me with funds as required to meet the subsidy costs of the newspaper. On November 17, 1969, he gave me £1,000 in cash and gave me permission from his Northern contacts to clear off any debts then due to Press Associates. This money was lodged in the Press Associates account in Ballymun and is so shown in the firm’s books. This £1,000 was in repayment of the £650 paid in by Press Associates to the Voice of the North account, as well as to pay off part of the expenses which Press Associates had incurred in organising distribution of four issues of the newspaper through Northern Ireland. I set out below a breakdown of these expenses:—

On November 25 or 26, Captain Kelly gave me a further £600 in cash, which I lodged to the Voice of the North account on November 26, 1969.

Captain Kelly gave me a cheque for £800 about the 8th or 9th December, 1969. It was drawn on the Munster and Leinster Bank, Baggot Street, Dublin, and was signed “Ann O’Brien”. I did not question this in any way because I knew him to be a reputable army officer engaged in secret intelligence work involving the North. Moreover, I was aware to some extent as a result of appeals I had brought to the Government from persons in the North for financial aid, that this aid was being distributed through accounts located near the Border, because the British Red Cross had refused to allow the Irish Red Cross to operate inside Northern Ireland. I had no knowledge, however, where these accounts were placed nor by whom they were administered. I had not until now, moreover, any knowledge of any other accounts in the Baggot Street bank, and I cannot throw any light on these.

I think it is only fair to state here that I became aware during the course of my work for the Government in the North that funds were being made available to the Northern defence committees from other sources, both within and without the jurisdiction of this State, than the Government aid relief grant. A prominent member of the Northern defence committees had also confirmed to me in December, 1969, that monies were being provided by them to subsidise production of the Voice of the North.

I received further cheques from Captain Kelly, all drawn on the Ann O’Brien account so far as I can recollect. These were lodged in the Voice of the North account as follows: £500 on December 31, 1969; £600 on January 14, 1970; £500 on February 12, 1970; £500 on March 3, 1970; and finally £1,000 on March 26th 1970.

This last cheque was returned to me by the Ballymun bank after the bank strike had ended. The cheque was marked “R.D.” I was not aware until October 29th 1970, when the cheque was returned to me, that it had not been paid.

I put in here returns from the Bank of Ireland, Ballymun, for the Voice of the North account covering the period from the opening of this account on September 25, 1969, to June 10, 1970. These show all Lodgements prior to the beginning of the banks strike in May, 1970. These records show clearly that I lodged in this account all monies received from Captain Kelly, except £1,000 which is accounted for here.

These returns also show all payments made out of the account in the same period. I also enclose cheques cleared through the banks for these payments. They show that from October 31, 1969 to April 10, 1970 a total in cheques was paid to the printers—Anglo Celt, Cavan—of £5,507. 9. 6d. In the same period a total of cheques of £573. 1. 6d. was paid to persons in the North and represented payment for articles, pictures, towards distribution costs, etc. Also during the same period I was repaid the £10 with which I originally opened the account. I was also paid a cheque for £30 for travel expenses to the North and Cavan, while a total of £135 was paid to Press Associates—representing recoupment for telephone, postage, and secretarial expenses over the period from Nov. 1, 1969 to Jan. 1, 1970.

This gives the following cash movement through the account from its first opening on September 25th, 1969 to June 10th 1970:—

Add £1000 cash paid per Captain Kelly to Press Associates in repayment for £650 loan above plus £350 recoupment of expenses incurred by Press Associates to Nov 1, 1969.

The Committee is no doubt aware that I have been accused by the United Irishman of accepting “Fianna Fail gold” and of receiving “£400 a week” in connection with the financing of this newspaper. These allegations are untrue as the figures I now have this opportunity of presenting fully prove.

Last May I instructed my solicitor, Mr. Rory O’Connor, at Lower Ormond Quay, Dublin, to institute proceedings for libel against the United Irishman and its editor. He later informed me that proceedings could not be brought against this publication since neither it nor its publishers is registered under the Companies Act; he further informed me that he had not been able to serve a writ on the editor of this publication.

These accusations were taken up and repeated under privilege by several Deputies in Dáil Éireann. I am, therefore, grateful to the Committee for this opportunity of clearing my name and reputation.

If there is any other matter arising out of this statement about which the Committee feels it requires further information, I shall be glad to furnish it.

I am in deep trouble over the bill for printing of the booklets “Terror in Northern Ireland” and “Eye-Witness in Northern Ireland”, which you authorised last August.

The total bill for printing is £656. 2. 3. and the printer is hounding me for payment.

You may remember we agreed to print 1,500 copies of “Terror in Northern Ireland” with a soft cover, for distribution at the Labour Party Conference in Brighton. The cost of this was £79. 9. 9. We then agreed, since the type was held, to do an art cover and print off 7,000 copies. Of these, half were to be bought by the GIB and the other half to be given to the CDC people in Belfast. These retailed at 2/6 each. The cost of printing together with the blocks cost and art work for the cover came to £243. 7. 3.

We also agreed to print 5,000 copies of “Eye witness in Northern Ireland,” 2,500 to be bought by the GIB and the balance to be given to the author. The cost here, for printing, blocks and artwork for the cover came to £333. 5. 3. As a matter of interest, the author had a further 15,000 copies printed at his own expense and has succeeded in selling them.

The copies of the booklets required were delivered to Col. Jim Breen at 65, Merrion Square, Dublin 2.

I enclose a bill made out to cover this expenditure and I would be very glad if you could do anything to close this matter up.

I am sorry to have to tell you that I wish to tender my resignation from the Government Information Bureau temporary publicity unit since I feel I can no longer contribute usefully to the exercise as presently operated.

I have arranged to pick up material in Belfast and Derry from the Defence Committees in both areas and am travelling Northwards early tomorrow for that purpose. This will complete the work I have in hands for the Bureau.

Thank you for your letter which came as a surprise to me. I did not anticipate that you would be taking this step, as you did not mention it on Thursday when we spoke. We are, as you know, extremely short of writers when we need them most.

However, I assume that you have decided on this course in view of the work which will arise from the other matters which we discussed, all too briefly at the time, I’m afraid, due to factors outside my control. If you are free on Thursday, I’d welcome the opportunity of going into these points in more detail with you over lunch—say 12.45 in the Hibernian, if that suits you. I think we left it on the basis that you would give me an outline on paper which I could process.

I enclose my expenses from September 1st to date. Following our discussion today I would suggest that I come off your payroll as from this date and work on the basis we discussed.

I can submit my fee and expenses that arise in the weekly detailed account which I shall furnish to you under the other cover arrangement.

I enclose a list of personalities [not printed] whose pictures would be worth having for your files.

P.S. Would it be possible to borrow your picture of the B Special with the axe handle for use this weekend in our new paper effort? If this is okay, you could give it to the messenger.

The Minister for Finance, Mr. Haughey, whom I saw today, authorised payment of £1,000 on account for “Voice of the North”, and asked me to get in touch with you about it.

The time remains the same, 7.30 p.m. for 8, but the new venue will be the Hibernian Hotel.

It is the intention of the Taoiseach to attend before dinner to express his personal appreciation to you.

Details of Cheques drawn on the account of Messrs. Karl Johnston and Seamus Brady in respect of “Voice of Ulster Publications”

I am enclosing a further submission* arising out of some of the evidence given to the Committee by Mr. Neeson, Director of the Government Information Bureau. I do so, because I feel I am entitled to clear my name and reputation.

I am sorry to have to raise this matter at a time when the Committee has more important issues before it, but I am only concerned that the truth should be made plain.

4. de Barra, Leslie Bean T.

The Irish Red Cross Society is a statutory body inaugurated by an Act of the Oireachtas in 1938. It is governed by a Central Council of 42 members: 12 of whom are nominated by the Government. The Council delegates its powers to a working Executive of 12, elected annually from the Council. It meets monthly.

The Chairman of the Society is appointed by the President of Ireland on the recommendation of the Government and the term of office of the Chairman is three years, with the condition of re-appointment if the President is so advised by the Government.

The Society has a very small salaried staff and its General Secretary is the Chief Executive Officer. No member of the staff has ever applied for overtime allowances even though they have almost worked round the clock on the Society’s relief operations. All the other members of the Society are Volunteers, as are the Chairman and members of the Central Council.

Section 2 of the 1938 Irish Red Cross Act states “The Minister for Finance may, out of moneys provided by the Oireachtas, afford assistance to the Society by way of grant or loan on such terms as he shall think proper”.

Since its inception, the Society has been the channel used by successive Governments to implement Government decisions on relief and help for victims of war, internecine strife and natural disasters at home and abroad.

On the Society’s work for the relief of distress in the Six Northern Counties after the disturbances started on August 12th, 1969, the following is an absolute and accurate account.

Following the outbreak in the Six County area, August 12th, 1969, Mr. Charles J. Haughey, T.D., the then Minister for Finance, telephoned me at my home in Cork on Saturday, August 16th inviting me, as Chairman of the Irish Red Cross, to meet him to discuss relief for the victims of the disturbances. I travelled immediately to Dublin and met him by appointment at his office, Government Buildings, on Monday, August 18th at 10.15 a.m. He informed me that the Government had decided to supply all possible aid to the victims, that the Army was opening up Field Hospitals and Refugee Camps at vital spots: Gormanston Camp and Finner Camp, and that the help of the Red Cross was needed.

I reported to him that already without our issuing an appeal considerable donations in cash and relief supplies had come into our Headquarters and to our Branch centres throughout the country. I assured him, on behalf of the Society, that the members would do everything possible to operate this relief venture successfully.

As from 16th August the Society’s personnel were on active duty at Gormanston Camp.

On Sunday, 17th and Monday, 18th I was at Headquarters with the General Secretary and, with the help of members, supplies started to flow north to relief centres opened by various groups in Belfast and Derry.

On Monday, August 18th, we announced at a Press Conference at our Headquarters our plans and our appeal for help. We also drew the attention of the public to the press release issued from the Government Information Bureau which appeared in the four daily newspapers on that morning which stated:—

‘The Minister for Finance has announced that the Government is making available adequate funds for the relief of victims of the disturbances in the Six Counties. These funds will be administered mainly by the Irish Red Cross Society.

The Government are aware that groups and organisations who are concerned about the distress of their fellow Irishmen and Irishwomen are anxious to collect funds for Northern Relief.

The Government are anxious that such efforts should be coordinated and request that all such funds and contributions should be sent to the Irish Red Cross Society.

His Grace, the Archbishop of Dublin, Dr. J. C. McQuaid, this afternoon forwarded to the Taoiseach, a cheque for £1,000 drawn from charitable funds at his disposal, to help the refugees. The Taoiseach has informed His Grace that he has passed this cheque to the Irish Red Cross Society.’

On Wednesday, August 20th, accompanied by the General Secretary, Miss M. B. Murphy, I flew to a pre-arranged meeting with the Vice-Chairman and Headquarters’ Staff of the British Red Cross Society, London, to discuss the possibility of organising combined Irish/British Red Cross teams for service in the disturbed areas.

On Thursday, 21st August, again accompanied by Miss Murphy, I visited His Eminence William Cardinal Conway at Armagh and informed him the Society proposed to send regular relief supplies and cash to the leaders of the major religious denominations inside the Six Counties. We subsequently sent cash donations of £2,000 to Most Rev. Dr. N. Farren, Bishop of Derry, £2,000 to His Grace, Most Rev. G. O. Simms, Archbishop of Armagh, £2,000 to Trench House Relief Co-ordinating Committee, £250 to Most Rev. Dr. Phiblin, Bishop of Down and Connor, and £2,000 to Rev. Dr. J. T. Carson, Moderator, Presbyterian Church.

C.I.E. then made the generous offer to transport goods to the main relief centres for us. These centres were Trench House, Belfast, later transferred to Relief Co-ordinating Centre, 26 South Link, Andersonstown, and the Derry Relief Committee. Many requests from these centres came to us for special items — medical supplies, tea, sugar, butter, carrycots, prams, bedding and blankets. We complied at once.

I have read the statement being forwarded by Miss M. B. Murphy, General Secretary, and also your Red Book No. I. These contain details of the moneys transferred during the period under investigation and there is no necessity for me to repeat them in this statement. The General Secretary had and always has had my complete confidence and also that of the full Society.

Should further information be required please advise me and I shall attend to it.

Leslie, Bean T. de Barra,

Chairman

5. Deacon, Mr. Herbert T.

COMMITTEE OF PUBLIC ACCOUNTS OF DÁIL ÉIREANN (PRIVILEGE AND PROCEDURE) ACT, 1970.

STATEMENT OF HERBERT T. DEACON of 1 Palmerston Gardens, Rathmines, Dublin, made 14th January, 1971, in pursuance of and in compliance with the provisions of the above Act.

I am the manager of the Munster & Leinster Bank branch at 2 Lower Baggot Street, Dublin since 11th June, 1968. At the time of my transfer to the branch Mr. William C. Walsh was acting as Deputy Manager there, in which post he continued until his transfer on promotion to Crumlin Cross Branch on the 24th December, 1969.

I was not personally involved in the opening of the joint account at the branch in the names of John White, John Loughran and Roger Murphy, or of the separate account opened in the names of George Dixon and Ann O’Brien. I was however advised by Mr. Walsh, the Deputy Manager, of the opening of the accounts and the manner in which they were being conducted from time to time.

During the period that the accounts were in operation I had several telephone conversations with Mr. Fagan relating to the funding of accounts, as strict control was being exercised and no arrangements for overdrafts had been authorised. On one occasion I recollect speaking to Mr. Fagan about his providing for a cheque for £12,000 which had been drawn on the account of George Dixon for “cash” on the 12th February 1970. Mr. Fagan explained that there would be a little delay in arranging to fund the account as a “vote” was required before such sum could be made available. The £12,000 withdrawal was covered on the 20th February by a lodgment of that amount to the Dixon account. This amount came from the joint account in the names of John White, John Loughran and Roger Murphy, to which a lodgment of £12,000 had been previously made on the same day by the bankers to the Irish Red Cross.

I produce* all relevant accounts, dockets and vouchers in my possession. I also refer to three cheques which came to my notice since the re-opening of the banks, namely:

1. Cheque No. 925410, dated 25th March 1970 for £1,000 drawn by Ann O’Brien in favour of Seamus Brady.

2. Cheque No. 925412 dated 6th April 1970 for £8,500 drawn by Ann O’Brien in favour of Weluks Limited.

3. Cheque No. 925413 dated 15th April 1970 for £300 drawn by Ann O’Brien in favour of “cash”.

These cheques were in the banking system prior to 1st May 1970 but not dealt with until after the banks re-opened. They were all returned through the Clearing unpaid.

I recollect having met Captain James Kelly at the branch on many occasions and having assisted him to procure cash for cheques drawn on the subsidiary accounts. The cheques were in all cases drawn strictly in accordance with the authorities and specimen signatures held.

At all times during the operation of these accounts I considered the Bank to be acting as agent of the Department of Finance in providing a means for the disbursement of moneys voted for relief purposes in Northern Ireland. I have no knowledge that the moneys withdrawn from the account at the branch were otherwise used.

6. Gibbons, Deputy James, Minister for Agriculture and Fisheries.

On April the 30th, 1970, I sent for Captain James Kelly who had submitted his resignation from the Army. I met him in my office in Leinster House. It then seemed clear to me that he had been an active agent in an attempt to import arms into this country.

Among other questions, I asked him from what source the money for this operation came. He replied that it came from the Fund for the Relief of Distress in Northern Ireland. This was the first intimation that I had received as to the source of the money. Up to that time I had no knowledge whatever as to the means of dispensation of this Fund or to whom payments were made. I knew nothing whatever about it nor have I any document relating to it.

7. Gleeson, Mr. Bernard.

COMMITTEE OF PUBLIC ACCOUNTS OF DÁIL ÉIREANN (PRIVILEGE AND PROCEDURE) ACT, 1970.

STATEMENT OF BERNARD GLEESON of 1, Mallow Street, Limerick, made the 20th January, 1971, in pursuance of and in compliance with the provisions of the above Act.

At all times material to the accounts under investigation I was employed at the Baggot Street, Dublin Branch of the Bank in the capacity as Manager’s Secretary. I was not involved in the opening of the accounts. I did not assist anybody in cashing cheques on or making lodgments to the accounts in question. I have no recollection of ever meeting any person connected with the accounts.

As Manager’s Secretary I was requested by him on a number of occasions to bring the relevant ledger cards to him in his office. This was how I became aware of the accounts initially.

On one occasion I was instructed to telephone the National Provincial Bank in London (the Bank’s Agents) requesting them to cash cheques up to a maximum of £6,000 for George Dixon if required on a specific date.

I also recollect having on at least one occasion telephoned Mr. A. J. Fagan of the Department of Finance on the instructions of the Manager. The purpose of the telephone call as far as I remember was to request a lodgment to an account in relation to Northern Ireland Relief. I did not get to speak to Mr. Fagan but was put on to a lady official in his Department. I believe I left a message with her to the effect that Mr. Fagan should telephone me.

I have no knowledge of the identities of John White, John Loughran, Roger Murphy, George Dixon or Ann O’Brien.

8. Hefferon, Colonel Michael J.

STATEMENT OF PROPOSED EVIDENCE BY COL. M. J. HEFFERON OF 67 BALLYTORE ROAD, RATHFARNHAM, DUBLIN.

I was Director of Intelligence at Army Headquarters from October 1962 until my retirement on the grounds of having reached the age limit for my rank on the 8th. April 1969.

On the 21st. August 1969, I was summoned to the office of the Minister for Defence, where he acquainted me with a Direction from the Government to the effect that Intelligence Officers were required as a matter of some urgency to take statements from refugees then in our Refugee Camps with a view to documenting the atrocities or infringements of the human rights of these refugees during the recent disturbances in Northern Ireland. It was my understanding, that these statements would form the basis for a dossier at some later date, which if the need arose, might be placed before some International or supra-national body. Teams were organised very quickly, and set to work at Gormanstown and Finner Camp initially, and later at Kildare.

In the early days of September, I was summoned to the Officer’s Mess, McKee Barracks, where the Minister for Finance had been having a working lunch with the Minister for Defence and officers of the Defence Council. When I arrived, their discussions, which I understood concerned themselves with matters of armament, equipment and manpower for the Army had reached finality. I was introduced to Mr. Haughey as the Director of Intelligence. After a few sociable remarks, the Minister for Finance said he wanted to apprise me of the Government’s concern at the grave situation which resulted here as a result of recent happenings in Northern Ireland and their awareness of the important role that Intelligence could, and indeed would be expected to play in it. He wished to give me an assurance that the Department of Finance would support Army Intelligence in any necessary demands they (that is Army Intelligence) might find it it expedient to make in order to carry out their tasks.

I thanked the Minister for his assurances, but immediately indicated that the situation was so confused just then that I could give no estimate of the extent to which it might be necessary to call for such support. I did however mention that apart from our usual Intelligence preoccupations, we had a pretty sizable refugee problem on our hands, and that just then I had teams of Intelligence Officers busily engaged in interviewing refugees in our camps—which as he knew was a mandatory task, by Government order. About mid August an office had been set up in Monaghan by a voluntary body, which had already been helpful to us in the many problems which the refugee influx had presented to us, and that I could see a good potential in supporting this institution and keep it going, financially helping if necessary.

Some time previously, my liaison with the Monaghan office informed me that the office was in fact in some financial difficulties and that they might have to shut down if these difficulties were not speedily solved. The sum mentioned to tide them over their immediate difficulty was one hundred pounds.

I considered this a modest and reasonable request in view of the Office’s proven value to us, and requisitioned the sum from the Department of Finance, when or how I do not now remember. At any rate I received a payable order for one hundred pounds from the Department on September 9th. which I transmitted in cash on that day to the office.

This transaction was done clandestinely lest the connection of the office with any Government Agency should be embarrassing or damaging to either party.

In forwarding this sum, I instructed my contact with the office to investigate the estimated costings of keeping the Office operating on a more or less permanent basis. This he did, and supplied me with some figures which formed the basis for a submission to Mr. Fagan for the Minister’s attention making a case for the necessary funds. I believe this letter is still somewhere on D/F files.*

As a result of this submission, I received a further payable order for five hundred pounds from the Department per Mr. Fagan on the 17th October, the covering letter dated the 15th. October.

As a result of further negotiations and enquiries I agreed to purchase some items of equipment locally in Dublin for delivery in Monaghan, and make available to them further monies with which they themselves could make purchases of items (specified) in local towns.

The total amount of expenditure incurred in support of the Monaghan Office was two hundred and fifty pounds—that is the one hundred pounds forwarded on the 9th. September plus the one hundred and fifty pounds spent on office equipment etc.

A further sum of one hundred pounds advanced for local purchase was returned unspent, because it was becoming apparent that disagreements among the personnel operating the office, was leading towards a break-up. The break-up eventually happened about the first or second week of November. The £100 was returned intact to my contact, and is not of course shown as an expenditure. I merely mention it to emphasise the carefulness and straight dealing of the people we operated with.

About the payable order issued by Mr. Fagan on the 3rd October, it came about in this way. One day towards the end of September, Mr. Fagan rang me to say that the Minister for Finance, Mr. Haughey would like to see me at his home, and that I was to bring along Capt. James Kelly with me. We met the Minister, and Capt. Kelly who had been active since mid-August on duties involving liaison with the Northern people active in Defence and aid, told him he proposed meeting representatives of the various defence committees at Bailieboro’ on the week-end 3/4 October. The purpose of the meeting was to coordinate the efforts of the various bodies. At this time there were areas in both Belfast and Derry barricaded and cut off from the remainder of these cities. Vigilantes were on constant duty at the barricades and it was my understanding that subsistence allowances were being paid to them, from funds at the disposal of the Defence Committees. Captain Kelly asked the Minister would he authorise a payment to meet the expenses of the meeting and possible follow-up meetings. As far as my recollection goes no specific sum was mentioned. The Minister agreed, and on the 3rd of October I received a payable order for £500 from Mr. Fagan for Capt. Kelly’s meeting. I rang and explained the background to him, and as the payable order was made out to me in error for Capt. Kelly, I would endorse it and hand it to Capt. Kelly—time would not permit of sending it back, and having a new one made out. I endorsed the P/O, handed it to Capt Kelly and got a receipt.

I lodged the balance from the £600, I received, as already detailed, namely the sum of three hundred and fifty pounds to the credit of the Department of Finance.

Two hundred and fifty pounds represents the total expended by me from Northern Ireland Aid funds

9. Kelly, Captain James J.

As regards a preliminary statement, there is nothing I can usefully add to the information supplied in my letter to Mr. Murray.*

I have no documents in my possession relevant to the enquiry and as regards the document, you specifically requested, it is completely irrelevant.†

10. Luykx, Mr. Albert A.

Sometime before 1st April 1970 Capt. Kelly asked me to accompany him to the Continent as an interpreter to facilitate government business in which he was involved.

I agreed to do so and both of us flew to Brussels, and went by car to Antwerp on 1st April. On the trip across Capt. Kelly explained that he was investigating an arms-shipment which had failed to arrive in Dublin from Antwerp on March 25th.

In Antwerp we met with no success in tracing the arms, so Capt. Kelly decided to go to see Mr. Schlueter in Hamburg. Because train-connections were bad and all the flights from Brussels to Dusseldorf and Hamburg were booked-out, we went by taxi. En route I rang Mr. Schlueter and made an appointment to meet him the following day.

We stayed overnight in Dortmund and while we were having dinner in the hotel, Capt. Kelly telephoned Ireland got an order telling him to come back home immediately, because of more trouble that had arisen in Northern Ireland. Capt. Kelly decided to confirm the order and eventually he got in contact with Mr. Blaney and as a result of this communication, Capt. Kelly decided to see Mr. Schlueter as arranged before returning to Ireland. Because of some difficulties with German telephone operators I assisted Capt. Kelly in putting through the call to Mr. Blaney.

The next day we went by taxi to Hamburg where we met Mr. Schlueter, who told us that the German radio had given-out the news that some British soldiers were shot in the North, and we had a discussion of several hours. Capt. Kelly seemed to feel that it was important that the arms should be brought in as quickly as possible because of the order he got on the previous evening to return and he made arrangements with Mr. Schlueter to fly the arms from Vienna to Dublin right-away.

There was some question of a balance of £4,000 being outstanding for some bullet-proof vests and Capt. Kelly said he would try and make arrangements to have the money transferred as soon as possible, but he did not seem happy because the vests were too dear, I think.

At that meeting I met Mr. Schlueter for the first time, and I discussed with him the possibility of I becoming his agent in Ireland.

Mr. Schlueter told Capt. Kelly that he had 400 extra sub-machine guns and a lot of ammunition immediately available, and as they were good value he suggested that Capt. Kelly should purchase them. The charter of an aeroplane, Mr. Schlueter stated, would cost the same for carrying a full load or a half load.—After some thought Capt. Kelly decided to buy the lot, but Mr. Schlueter wanted money and Capt. Kelly had not money with him, and asked me if I could oblige him for a few days. So I gave my cheque to the amount of £8,500 to cover the goods and the charter of the plane.

A few days later, in fact on Monday 6th April Capt. Kelly handed me a cheque signed by Ann O’Brien for £8,500, which I lodged in the Munster & Leinster Bank. 100 Grafton Street on that day.

Capt. Kelly paid all the expenses of this trip and gave me £50 for my time and trouble and out-of-pocket expenses.

On April 17th, I accompanied Capt. Kelly to the Continent again at his request, having previously arranged Capt. Kelly’s meeting with Mr. J. Squire, of Air Turas.

On this trip we went to Frankfurt, where we met Mr. Johnston of Air Lingus. We went from there to Vienna to the firm of Kirchner & Co.

In Vienna we stayed in the Intercontinental Hotel; we met Mr. Schlueter and we saw some arms.

The balance of the £4,000 was discussed, but during that stay no money changed hands.

I made arrangements with Mr. Schlueter to come to Ireland for a demonstration for the Army on May 4th.—Mr. John Kelly arrived in Vienna on Sunday, almost at the same time as I was leaving for Dusseldorf, to look after my own business.

I met Capt. and John Kelly again in Dusseldorf on April 21st from where we took the Air Lingus plane home.

Capt. Kelly, as far as I know, paid for all expenses; but I don’t think I got any out-of-pocket expenses for that trip.

When the Arms trial was over and the banks had re-opened again, I was informed by my bank that the cheque for £8,500 had bounced “refer to drawer”; and since that day I have been wondering when the government will refund that money, plus the interest accrued.

I would of course never have given my cheque for £8,500 to Capt. Kelly, and of course I never would have had anything to do with the whole affair if I had known that everything was not above board.—But why should I have had any doubt, as I was introduced to it by a senior Minister and since my participation I had heard and knew that several other Ministers and (sic) full knowledge of my activities.

We enclose herewith to the Debit of your account, unpaid cheque for £8,500.0.0 dated 6th April, 1970 drawn by Ann O’Brien on Selves, Lr. Baggot Street, with answer “Refer to Drawer”.

Yours faithfully,

11. Mac Eoin, Mr. Gearóid.

This Statement is being made at the request of the Public Accounts Committee in connection with its inquiry into the expenditure of the Grant-in-Aid for Northern Ireland Relief. I am not certain if this Statement is relevant but reading the evidence already submitted to the Inquiry, and because of the references to Bank Accounts in the Baggot Street Branch of the Munster & Leinster Bank, I feel it may be relevant.

Towards the end of April 1970 I met by appointment Mr.—* I cannot be certain of the venue but it was either at my home or at the Shelbourne Hotel. Mr.—* informed me that he had a cheque for £1,200 drawn on the Munster & Leinster Bank, Baggot Street Branch, which he could not cash as it was after Banking hours. I told him I felt I could give him portion of the sum involved immediately and that as I was well known in the Bank I would have no difficulty in cashing the cheque subsequently.

I was able to give Mr—* £1,000 in cash and he gave me the cheque. In or about 30th April 1970 I presented the cheque at the Munster & Leinster Bank, Baggot Street. The cheque was passed for payment by Mr. Patrick Morrissey who is a personal friend of mine. I paid the balance of £200 in cash to Mr—* a few days later.

This is the only occasion on which I was involved in the expenditure of the Grant-in-Aid for Northern Ireland, provided this transaction falls within this category. At the time I gave Mr.—* the monies in respect of the cheque I was under the impression that the monies were required urgently for the relief of distress in Northern Ireland.

I have no document in my power or control relevant to the matter being examined.

Gearóid Mac Eoin,

Lisin

Ascal Butterfield

Rath Fearnan

ATH CLIATH 14

12. Mac Eoin, Lt. General Seán.

By sealed order of the Government dated 28th August, 1946, effective from 2nd September, 1946, the Minister for Defence was authorised to exercise military command over the Defence Forces and all executive and administrative powers in relation to the said Forces, including the power to delegate command and authority. (Section 299 of the Defence Act 1954 continued in force this order of 28th August, 1946).

Sec. 13 provides for the establishment of the three principal military branches—

By sealed orders of the 26th November, 1954, (effective from 1st January, 1955) the Minister for Defence assigned to the Chief of Staff, Adjutant General & Quartermaster General certain matters for which they will be responsible to the Minister.

The effectiveness of the military measures designed to ensure the safety of the State in accordance with the general policy of the Government.

Military Intelligence .....................................................................

Pursuant to Sub-Section (4) of Section 13 of the Defence Act, 1954 (No. 18 of 1954), the Minister for Defence has by sealed order dated the 22nd December, 1954, effective as on and from the 1st January, 1955, delegated to the Officer for the time being acting in the appointment of Chief of Staff the co-ordination of the business of the branches of the Chief of Staff, the Adjutant General and the Quartermaster General.

Defence Force Regulations C.S. 4 sets out the organisation and establishment of the various components of the Defence Forces including Army Headquarters.

(b) It has been the practice since the foundation of the Defence Forces for the Director of Intelligence to have direct access to the Chief of Staff and to the Minister for Defence.

(c) Except where a special delegation of command has been made by the Minister for Defence pursuant to Section 17 of the Defence Act, 1954, the Chief of Staff does NOT exercise military command over the Defence Forces. Command, in the sense of ‘control’ is of course exercisable by the Chief of Staff over his staff and sub-sections by virtue of his position as head of the Branch.

13. Moore, Mr. Thomas D. A.

COMMITTEE OF PUBLIC ACCOUNTS OF DAIL EIREANN (PRIVILEGE AND PROCEDURE) ACT, 1970.

STATEMENT OF THOMAS D. A. MOORE of 2A Lower Baggot Street, Dublin, made on the 14th January, 1971, in pursuance of and in compliance with the provisions of the above Act.

I am an official of the Munster & Leinster Bank Limited, acting as Head Ledger Keeper at its branch at 2 Lower Baggot Street, Dublin. I have been employed at the said branch at all times material to the present investigation.

I refer to the ledger card of an account maintained at the branch in the names of John White, John Loughran and Roger Murphy, which is designated “Relief Committee— Belfast Fund for the Relief of Distress”, and I say that the instruction which appears on the heading of this ledger card, namely “Do not send out statement. No correspondence to be sent out. All enquiries to A. J. Fagan”, was typed by me personally on the instructions of one of my superiors. I believe that the official who directed me to place this cautionary note on the ledger card was Mr. William C. Walsh, former Deputy Manager at the branch. I am quite certain that these instructions did not emanate from Mr. Fagan but were placed on the account to ensure as great a degree of privacy and security as possible. I have never to my knowledge met John White, John Loughran or Roger Murphy and have no knowledge of any such persons.

During the period in which this account was operated at the branch I came in contact with Mr—† whom I believe to be the person who handed in the completed mandate governing the operation of the joint account in the names of John White, John Loughran and Roger Murphy designated as above. I recollect having dealt with him on one or more occasions when he was cashing cheques drawn on the accounts at the branch. To the best of my belief payment of cheques so cashed was made in English currency notes.

I also recollect having met a Mr. Kelly, whom I now know to be Captain James Kelly, at the branch and having assisted him in a similar manner.

I refer to the ledger cards of accounts in the names of George Dixon and Ann O’Brien which are also maintained at the branch, and I say that the cautionary notes at the head of each of such ledger cards was typed by me personally on the instructions of Mr. Walsh, the then Deputy Manager. On no occasion did I contact Mr. Anthony J. Fagan of the Department of Finance or receive any instructions from him.

At no time during the operation of these accounts had I any knowledge that the moneys drawn from them were used or likely to be used for any purpose other than that for which they were expressly opened, that is to say for the relief of distress in the North.

Signed: T. D. A. Moore.

14. Morrissey, Miss Mary.

Statement of proposed evidence by Mary Morrissey, Executive Officer, Department of Finance, to the Committee of Public Accounts

I am an official of the Department of Finance. During the period between August 1969 and June 1970 I worked as assistant to Mr. A. J. Fagan. I occupied the same office as Mr. Fagan and as part of my duties I opened all his correspondence (including even envelopes marked “confidential”), answered his incoming telephone calls and put through his outgoing calls. All files and papers, including the one on Northern Ireland Relief, were in my custody. That particular file was kept in a locked filing cabinet for which only Mr. Fagan and I had keys.

When Mr. Fagan was particularly busy I would make telephone calls on his behalf. In this way, a number of times, at his request, I phoned Miss M. Murphy of the Irish Red Cross about payments which the Department were making to the Red Cross with a request that the amount involved be transferred to a Northern Ireland Relief account in the Munster and Leinster Bank, Baggot Street. These telephone calls were always confirmed by letters which Mr. Fagan signed.

At the time I knew Col. M. Hefferon as Director of Army Intelligence and Capt. J. Kelly as an Army Intelligence officer, both of whom telephoned or called to see Mr. Fagan from time to time.

Towards the end of 1969, I put through a call to the Munster and Leinster Bank, Baggot Street for Mr. Fagan and was present during his conversation with an official of the bank. His conversation, as I recall it, was that he would be glad if they (the bank) could facilitate a Mr. Kelly who wished to open an account; that the account would be in connection with aid for Northern Ireland and that because of the very delicate situation in the North the whole matter had to be treated very confidentially; that Mr. Kelly was assisting the Government in this matter.

No names were mentioned by Mr. Fagan in connection with the account other than Capt. Kelly’s. During the conversation Mr. Fagan, in reply to a remark by the official of the bank said that he would send Mr. Kelly across.

I was present, afterwards, when Mr. Fagan told Capt. Kelly that he was expected at the bank and asked him to go across. Capt. Kelly said that he would and left.

At no time did I open correspondence for Mr. Fagan containing a cheque book, a bank mandate or any other documents relating to any account in the Munster and Leinster Bank, Baggot Street, nor did I ever see such documents in the office.

Sometime around the Spring of 1970 Mr. Fagan was about to leave the office when he had a telephone call from the bank to say that there was no money in the Northern Ireland account. He asked me to get in touch with the Red Cross to have the payment expedited.

I spoke to the Red Cross who, on checking, told me that the cheque had in fact been lodged.

I passed this information on to the bank but was told by an official that there must have been some misunderstanding—that their problem was not that the Red Cross cheque had not been lodged, but that a transfer had not been made between some accounts in the bank. As I was aware of only one account I promised to make some further enquiries and call them back.

Mr. Fagan was out of the office and I tried a number of times, without success, to contact Capt. Kelly by phone.

When I called the bank to say I had been unable to contact the person concerned I was told that it was not necessary anymore; that Mr.—— had been in and had fixed up everything. I cannot remember the name used but it was not Capt. Kelly’s.

I don’t recall telling Mr. Fagan about this afterwards. I may have, but as there was no particular problem it is possible that I did not.

The only account dealing with Northern Ireland aid of which I had any knowledge was the one named the “Belfast Fund for the Relief of Distress” in the Munster and Leinster Bank, Lower Baggot Street.

I was on holidays for the latter half of October 1969 and I do not recall knowing anything about the Clones account other than seeing, at a later stage, references to it on the Departmental file.

Sometime last Summer, after I had ceased to work for Mr. Fagan, he asked me if I had ever heard the names of White, Loughran, Murphy, George Dixon or Ann O’Brien in connection with the Northern Ireland Aid Account in Baggot Street. I had never heard the names White, Loughran, Murphy or Ann O’Brien but Dixon was familiar and I recalled that I had heard a reference somewhere to a “Dixon Account”. I was not sure where but I could only conclude that it might have been during my conversation with the official of the bank earlier in the year. I do not remember Mr. Fagan ever having referred to the name Dixon or my having mentioned it to him. Mr. Fagan said that he would have to report my recollection of this to the Special Branch and that I might be required to make a statement. He told me afterwards that the Special Branch did not think it necessary to take a statement.

Signed: Mary Morrissey

Date: 26th January 1970

15. Morrissey, Mr. Patrick Joseph.

COMMITTEE OF PUBLIC ACCOUNTS OF DÁIL ÉIREANN (PRIVILEGE AND PROCEDURE) ACT, 1970.

STATEMENT OF PATRICK JOSEPH MORRISSEY of 6, Fortfield Drive, Dublin, made on the 19th January, 1971 in pursuance of and in compliance with the provisions of the above Act.

I am an official of the Munster & Leinster Bank Limited and I am at present employed at the Baggot Street Branch of the said bank in the capacity of Assistant Manager.

During the period 10th November, 1969 to 31st December 1969 I was not working at the branch at No. 2 Baggot Street where the accounts material to this Inquiry were maintained, so that any knowledge or recollection which I have of matters relating to the accounts must necessarily date from the early days of January, 1970 until the closure of the banks to the public on 1st May, 1970.

As Assistant Manager at the Branch it was my duty, among other things, to deal with referred cheques, that is to say cheques which might be returned to the drawers unpaid for one reason or another, or in respect of which some problem arose. I recollect that in or about the month of February, 1970 a cheque for £12,000 drawn on the account of George Dixon in favour of “cash” was referred to me as there were insufficient funds in that particular account to meet it. Neither were there funds in the joint account in the names of John White, John Loughran and Roger Murphy adequate to cover it. Since the cheque had to be dealt with immediately a certain amount of anxiety arose. In consequence I telephoned the Department of Finance and asked to speak with Mr. Anthony J. Fagan. I was informed that he was not available. I then spoke to a Miss Morrissey, and having explained discreetly to her that funds were required by the Bank—no figures or names of accounts being mentioned—I was assured that the matter would be taken care of. The account of George Dixon was subsequently on the 20th February, 1970 put in funds with a lodgment of £12,000. According to the Bank’s records the account was funded from the joint account in the names of John White, John Loughran and Roger Murphy which had on the same date been put in funds by a credit transfer from the account of the Irish Red Cross.

I have never to my knowledge met George Dixon, Ann O’Brien, John White, John Loughran or Roger Murphy, nor do I know who these people may be in reality. To the best of my recollection I cashed approximately 5 cheques drawn on one or other of the relevant accounts and also dealt with a number of lodgments.

16. Murphy, Miss Mary B.

On the morning of 7th October, 1969, I went to the Office of the then Minister for Finance, Mr. C. Haughey, T.D., at his request. The Minister stated it had been reported to him that there were many cases of distress in the North, people who were not receiving any assistance. He asked if the Society would make available a sum of £5,000 to be sent to a Joint Account in the Bank of Ireland, Clones, in the names of Messrs. F., G. and H.

The Minister stated these were reputable men and that a statement of expenditure would be submitted in due course. I conveyed the Minister’s request to the Chairman of the Society and, following approval, I arranged for the Society’s bankers to transfer the sum of £5,000 from the Society’s Emergency Relief Fund to the Joint Account in the Bank of Ireland, Clones.

Two further transfers of £5,000 each were made to this Joint Account in Clones on 15th and 31st October. On 9th October a sum of £20,000 was transferred to the Belfast Refugee Re-establishment Committee, Munster and Leinster Bank, Belfast, and ten transfers were made to the Belfast Aid Account at the Munster and Leinster Bank, Baggot Street, Dublin, as follows:

The foregoing payments, other than the first £5,000, were made by the Society in accordance with the written instructions of the Department of Finance and represent the total funds received from the Government for Six County Relief.

I have read document Book I* and it appears to include all relevant correspondence between the Department of Finance and the Society.

17. Neeson, Mr. Eoin.

I have just recently returned home from hospital after a heavy operation and am confined to bed under strict doctor’s orders. The doctor has advised me that it will be the end of the month at the earliest before I am fit to resume work.

So far as I am aware all documents conceivably relevant to the matter being examined, which might have been in my power or under my control, are already in the possession of the Committee or are otherwise out of my hands.

I will check on this at the first opportunity when I resume work. I regret, because of the state of my health, that it will not be possible to do so before Friday, 22nd instant as you requested.

I had no function in regard to the disposal of the funds which are the subject matter of the inquiry. I doubt if I would be in a position to offer any evidence which would be relevant to the matter under inquiry, but I would be quite willing to attend any preliminary inquiry or the formal public inquiry as soon as I am fit to do so.

My doctor has ordered me to take a convalescent holiday at the earliest possible date after my return to work. Under the circumstances I anticipate being absent from the country from the 25 February to 17 March.

I have no direct knowledge relating to the matter under investigation by the Committee— that is the disposal of funds in the Northern Relief Fund.

Any information I do have I have learned as a result of evidence already given before this Committee and newspaper reports of the Arms trials.

In oral evidence to the Committee, Mr. Seamus Brady has made certain submissions and statements in respect of the publication—“The Voice of the North”—and the alleged association of the Government Information Bureau with same. This submission is intended to deal generally with that matter and to set straight the record in regard to these allegations.

The first information that I had about Mr. Brady’s selection and appointment to the Government Information Bureau temporary extended service was as a result of a casual meeting on Friday, August 15, 1969, with the then Minister for Finance, Mr. C. J. Haughey, who informed me that he had arranged for Mr. Brady to join the Bureau “for the duration” at a fee of £200 a month. Mr. Haughey instructed me to write him a note in respect of Mr. Brady’s appointment.

I arranged for Mr. Brady, together with two other members of the expanded information service, to act as reporters, particularly to interview refugees from the North, and supply Government Information Bureau headquarters with reports.

When, on August 29, it was agreed at a reassessment conference at Government Information Bureau headquarters that any further emphasis in this respect would be mere propaganda, it was decided to withdraw this reporting team and establish a general production unit in headquarters producing factual material for distribution abroad.

This was a consistent and deliberate policy, in accordance with my instructions, that the purpose of the unit was to supply information on an international basis to news media and opinion leaders in their own countries, and to avoid propaganda and inflammatory material. On September 6, 1969, the possibility of extending the activities of the unit to provide information specifically for the Northern public in addition to our overseas campaign was considered at a conference and rejected.

Little of Mr. Brady’s material was distributed as his approach tended to be propagandist. Mr. Brady seldom attended the daily conferences at Government Information Bureau headquarters in connection with our work.

On Thursday, September 18, following a conference which Mr. Brady had not attended, he came into my office as the conference was breaking up at lunch-time. I had a taxi waiting and was about to leave. Mr. Brady, who also seemed in a hurry, said that he wished to talk to me. I said that I didn’t have time and asked him if he could leave it until next week as I would be away over the week-end.

Mr. Brady said that he would be away at the beginning of the following week himself, that what he wished to talk about concerned a newspaper “the people in the North” were starting and on which they had asked him to advise them.

I asked him to give a note about it. He agreed to do this. I never received this note. The conversation lasted two minutes at most and was conducted as I walked from my office to the hallway where Mr. Brady and I separated.

I held a conference in my office on the following Monday morning September, 22. I received a letter of resignation from Mr. Brady (copy attached) dated the previous day, which gave as his reason for so doing that “I feel I can no longer contribute usefully to the exercise as presently operated”. I was in agreement with this view, although it was the first indication I had that Mr. Brady contemplated resigning.

Following the conference one of the other temporary officers, who shared an office with Mr. Brady, told me that he was of the opinion that Mr. Brady intended to take an active interest in the production of a newspaper, which I assumed to be the one he had mentioned casually to me on the previous Thursday. This was the first indication I had that Mr. Brady’s intention was to engage actively in the production of a newspaper, about which I, as yet, had no knowledge. I wrote to Mr. Brady on Tuesday, 23 September (copy attached). In this letter I expressed my surprise at the suddenness of his resignation and, in the light of what I had since learned, assumed the reason to be because of work which would arise in connection with what he had briefly discussed the previous Thursday.

I mentioned to the then Minister for Finance that Mr. Brady had resigned from the Government Information Bureau extended service, and he said that he knew this. I asked the Minister if he had any idea what Mr. Brady intended to do. He said that Mr. Brady was going to start a paper—“The Voice of Ulster”—and possibly a mobile radio station to beam “stuff” across the Border. He added that I should see Mr. Brady and get further information from him. Accordingly, in the letter to Mr. Brady mentioned above, I asked him to meet me for luncheon.

During luncheon Mr. Brady outlined to me a scheme that I considered clearly contrary to Government Information Bureau policy. This, as he described it, was a purely “propaganda” exercise to counter “Unionist propaganda”, and was to be directed at the Northern public. Mr. Brady told me that this had already been discussed by him with the Minister for Finance.

Since my views on propaganda, especially inciting and inflammatory material, were well known to and had been frequently conveyed to Mr. Brady, and since he was clearly committed to this scheme which he claimed to have discussed in detail with the Minister for Finance, I listened to what he had to say but did not comment upon it or argue about it.

He suggested that the scheme could be financed by the cost of printing being subsidised. The manner he suggested was that he would submit a bill each week for material supplied which would equal the cost of printing. He also proposed to raise money by sales and advertising and appeared confident that this would enable the paper to be self-supporting in a short time. He also mentioned the mobile radio station and said their main problem was in getting a transmitter. I have no idea who the other people he had in mind might have been. He also claimed to have discussed these matters in detail with the Minister for Finance.

I did not indicate in any way that I agreed with or gave approval to the project at all. I had no intention of giving any support to the scheme outlined by Mr. Brady, which was completely contrary to Government Information Bureau policy.

The Government Information Bureau already had ample authority to produce any publication thought desirable.

At the same time I had no indication of the extent of any authority Mr. Brady might have for such a project from the then Minister for Finance, other than what Mr. Brady claimed. As indicated above Mr. Brady’s connection with the Government Information Bureau had already terminated. Because I was concerned at the way in which Mr. Brady was associating this project with the Government Information Bureau, at the conclusion of the luncheon interview I asked him to put his entire proposal in detail in a written memorandum to me, which he agreed to do.

I never received this memorandum. Shortly after this interview I sought the views of the then Minister for Finance on Mr. Brady’s scheme. I did not get any information from him.

Although I received neither the memorandum from Mr. Brady nor information from the Minister I subsequently received bills from Mr. Brady, without any accompanying or prior explanation, for the Voice of the North publication. I made no note at the time of when I actually began to receive these bills, but it was towards the end of October, 1969. Because of the circumstances outlined above I felt I had no justification in passing these accounts for payment. Accordingly I reported the matter to the Taoiseach at the first opportunity and I told him of my concern regarding this publication. I recommended to the Taoiseach that neither the Government Information Bureau nor the Government should have anything to do with it. The Taoiseach agreed with this view and at his suggestion, I gave the Taoiseach the bills and invoices I had received and he said he would give them to Mr. Haughey. So far as I can recollect one of these bills reached me via Mr. Tony Fagan of the Department of Finance. Having explained the situation to Mr. Fagan he undertook to deal with the matter and I returned the bill to him. Subsequently he returned it to me with a note on it to say that the Minister for Finance had approved payment of it and that it should be charged to the vote of the Department of the Taoiseach. I gave this bill together with others I had received to the Taoiseach. At a later date some of these bills were again sent to me. I gave these to the Taoiseach and again he said he would pass them to Mr. Haughey. I am aware that he did so. I was not thereafter aware of how the claims by Mr. Brady in this connection were dealt with.

Your sincerely,

Seamus Brady,

However, I assume that you have decided on this course in view of the work which will arise from the other matters which we discussed, all too briefly at the time, I’m afraid, due to factors outside my control. If you are free on Thursday I’d welcome the opportunity of going into these points in more detail with you over lunch—say 12.45 in the Hibernian, if that suits you. I think we left it on the basis that you would give me an outline on paper which I could process.

18. O‘Donell, Mr. Brendan.

With reference to your communication of 15th January* I would like to say that I have no document in my power or control relevant to the matter being examined.

I was a Higher Executive Officer in the Department of Finance and acted as Private Secretary to the former Minister from April 1967 until May 1970. I was on annual leave in August 1969 when the Government took the decision to make money available to provide aid for the victims of the unrest in the Six Counties at the time. When I returned from leave in mid-September I became aware that Mr. Fagan was concerned with the grant-in-aid. At around this time also Col. Hefferon, and later Capt. Kelly, were in touch with the Minister’s Office and visited the Minister. They were also in touch with Mr. Fagan and visited him in his office. I did not know what the purpose of these visits were.

I had no direct knowledge of the disbursement of funds from the grant-in-aid nor have I any recollection of the former Minister giving me any instructions or directions in relation to it at any time.

Mise le meas,

Brendan O’Donnell

21/1/71.

19. Walsh, Mr. William C.

COMMITTEE OF PUBLIC ACCOUNTS OF DÁIL ÉIREANN (PRIVILEGE AND PROCEDURE) ACT, 1970.

STATEMENT OF WILLIAM C. WALSH of Crumlin Cross in the City of Dublin, made on 14th January, 1971 in pursuance of and in compliance with the provisions of the above Act.

I am an official of the Munster & Leinster Bank Limited, and between the period September, 1968 to 24th December 1969 I was employed as Deputy Manager at the branch of the Bank at 2 Lower Baggot Street, Dublin.

I refer to the ledger card of an account maintained at the branch in the names of John White, John Loughran and Roger Murphy, which is designated “Relief Committee— Belfast Fund for Relief of Distress”, and I say that this account was opened at the branch in pursuance of instructions received by me personally from Mr. Anthony J. Fagan of the Department of Finance on or about the 11th November, 1969. I have known Mr. Fagan for a number of years and regard him as a person of the highest integrity.

In the course of a telephone conversation with Mr. Fagan on or about the 11th November, 1969 he (Mr. Fagan) stated that funds had been made available for the relief of distress in the North but that the Government did not wish to be directly involved in disbursing these funds, and he discussed the opening of an account at Baggot Street branch in a manner which, though facilitating disbursement, would not involve the Government in any way. I suggested that an account could be opened in the names of 3 persons and designated for the relief of distress in Belfast. Mr. Fagan explained that the funds which would be credited to such account would be provided through the Irish Red Cross. I subsequently prepared a form of mandate governing the opening and conduct of an account to be maintained in the names of John White, John Loughran and Roger Murphy, all of Cook Street, Belfast and designated “Relief Committee—Belfast Fund for the Relief of Distress”. To the best of my recollection the three names inserted in this mandate were furnished to me in the course of my telephone conversation with Mr. Fagan. I sent this form to Mr. Fagan.

I refer to the ledger card of the account in the joint names of John White, John Loughran and Roger Murphy, designated as above, and I say that the cautionary note typed at the head thereof was typed on my instructions by Mr. Thomas D. A. Moore, Head Ledger Keeper at the branch. I considered this step desirable in the interests of securing the maximum privacy concerning this account. Otherwise the statements, vouchers and communications relating to the account or any operation on foot of it might be made direct to any of the parties whose names appear thereon but concerning whom the Bank had no information.

I recollect that some days after the above account, which I shall refer to as the “main account”, was opened I received a further telephone call from Mr. Fagan in the course of which he stated that for easier withdrawal or disbursement of moneys from the main account, which required 2 signatures on all cheques and withdrawals, it was proposed to open separate accounts in single names, which would be funded from the main account. It was stated that a Mr. Kelly would call to see me later and having introduced himself would make the necessary arrangements. Later that day, a Mr. James Kelly, whom I now know to be Capt. James Kelly, called to the branch and introduced himself as Mr. Kelly of whom Mr. Fagan had spoken. Arrangements were then made for the opening of two further accounts in individual names and specimen signature cards were handed to Mr. Kelly for completion. One of these cards was returned with the name “George Dixon” inserted as the account-holder, together with a separate piece of paper containing 3 specimen signatures of a person named Ann O’Brien. I detached one specimen signature in the case of Ann O’Brien and affixed it to the specimen signature card, pinning the other two to the back of it. I did not witness the signature on either card but subscribed my name for internal purposes to vouch that the account was opened on my authority and was in order.

I refer to the cautionary notes on the headings of the ledger cards of the two subsidiary accounts, and I say that these were typed on the ledger cards on my instructions in the interests of providing maximum privacy. Subsequent to the opening of the above accounts I had no further contact with Mr. Fagan or the Department of Finance.

On several occasions prior to my departure from the branch on 24th December, 1969, I saw Captain Kelly conducting business at the branch, and I recollect having on a few occasions assisted him in connection with the cashing of cheques drawn on the subsidiary accounts in the names of George Dixon and Ann O’Brien. These cheques would, of course, have been already signed in accordance with the mandate or instructions held at the branch.

I am now the Manager at the Crumlin Cross branch of The Munster & Leinster Bank Ltd., where I was transferred on appointment on 24th December, 1969. In the month of April last a cheque for £300, drawn on the account of Ann O’Brien in favour of “cash” was negotiated by Capt. James Kelly at the branch. Following the presentation of this cheque for payment at the Munster & Leinster Bank Ltd., Baggot Street on resumption of normal banking facilities it was returned unpaid.

At no time did I ever meet any of the parties whose names appear on the main account or on the subsidiary accounts, and at no time during the operation of these accounts had I any knowledge that the moneys withdrawn from them were used other than for the purposes of providing relief of distress in the North.

Signed W. C. Walsh

APPENDIX 3

PRELIMINARY STATEMENTS*

1. Blaney, Mr. Harry J.

2. Blaney, Deputy Neil T.

3. Brady, Mr. Séamus J.

4. de Barra, Leslie Bean T.

5. Deacon, Mr. Herbert T.

6. Gibbons, Deputy James, Minister for Agriculture and Fisheries.

7. Gleeson, Mr. Bernard.

8. Hefferon, Colonel Michael J.

9. Kelly, Captain James J.

10. Luykx, Mr. Albert A.

11. Mac Eoin, Mr. Gearóid.

12. Mac Eoin, Lt. General Seán.

13. Moore, Mr. Thomas D. A.

14. Morrissey, Miss Mary.

15. Morrissey, Mr. Patrick Joseph.

16. Murphy, Miss Mary B.

17. Neeson, Mr. Eoin.

18. O‘Donell, Mr. Brendan.

19. Walsh, Mr. William C.