IRISH PRIME MINISTER DEFUSES POLITICAL CRISIS

UNCLAS DUBLIN 001137

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV EI
SUBJECT: IRISH PRIME MINISTER DEFUSES POLITICAL CRISIS

REF: DUBLIN 1119


1. (SBU) Summary: On October 3, Irish Prime Minister Bertie
Ahern defused a weeklong political crisis by admitting to
parliament that his acceptance of payments from business
friends in 1993-4 had been an error in judgment. Ahern's
statement preserved his Fianna Fail party's governing
coalition with the Progressive Democrats, whose leader,
Deputy Prime Minister Michael McDowell, had publicly urged an
explanation of the payments. Opposition leaders, however,
criticized Ahern for flouting ethical standards for public
officials, and they hope that continued coverage of the
affair will damage the governing coalition ahead of Ireland's
2007 general elections. End summary.

An Error in Judgment
--------------


2. (U) In a move that has apparently defused a weeklong
government crisis, Irish Prime Minister (Taoiseach) Bertie
Ahern told a special parliamentary session on October 3 that
his decision to accept roughly 60,000 Irish pounds from
business friends in 1993-4 was an error in judgment (reftel).
Ahern emphasized that he had not solicited the funds (which
helped to defray the legal costs of his marital separation)
and that no favors had been requested, or given, in return.
He also insisted that the payments had not been illegal nor
had fallen afoul of ethics guidelines in effect for public
servants at the time. Ahern nevertheless offered apologies,
acknowledging that the media's disclosures about the payments
had been "upsetting" to the Irish public.


3. (U) In a subsequent public statement, Deputy Prime
Minister (Tanaiste) Michael McDowell said that Ahern had not
been right to take the payments, but was still fit to remain
in office. McDowell indicated that the governing coalition
between his Progressive Democrats party and Ahern's Fianna
Fail party would stay intact. (McDowell had expressed
concern about the viability of the coalition last week in
asking Ahern publicly for a detailed explanation of the
payments, particularly an 8,000 British sterling contribution
from UK-based businessmen. According to press reports, Ahern
drafted his parliamentary statement with McDowell's help and
repaid most of the payments this past weekend at McDowell's
urging.)

Opposition Criticism
--------------


4. (U) Opposition leaders attending the October 3
parliamentary session criticized Ahern's statement,
suggesting that they would continue to pursue the issue.
They demanded that Ahern admit he was wrong to accept the
money, and they attacked the Progressive Democrats for losing
their moral authority in supporting Ahern's explanation.
Fine Gael party leader Enda Kenny described Ahern as the
"great evader," and the Greens party leader Trevor Sargent
called on Ahern to resign. Labour leader Pat Rabbitte
remarked that the affair had damaged the Progressive
Democrats in their role as the government's watchdog.


5. (SBU) Comment: For Ahern and McDowell, the immediate
crisis for the governing coalition appears to have passed.
Public attention will now turn to the legal predicament faced
by the Irish Times, which had disclosed the payments
following a leak of confidential information from the Mahon
Tribunal investigating allegations of illegal contributions
to Ahern and other officials. The Irish Times chief editor
and lead reporter on the story told the Mahon Tribunal on
September 29 that they would not reveal their sources,
perhaps placing themselves in legal contempt. While the
opposition apparently will no longer attempt to force Ahern's
resignation, their hope is that continuing coverage of the
affair will cast a pall over the governing coalition as
Ireland moves into the 2007 general election campaign.
KENNY