The former Fianna Fáil fundraiser Mr Paul Kavanagh was appointed to the board of An Post by the former Minister for Public Enterprise, Ms O'Rourke, on her last day in office.
An accountant, Mr Kavanagh is seen by some observers as favourite to succeed Mr Stephen O'Connor as chairman of the State postal company when he retires at the end of the year. Mr O'Connor was appointed in 1995 by the Rainbow Coalition and his term of office was extended by two years in 2000.
Mr Kavanagh's appointment was not formally announced by the Government although a spokeswoman at the Department of Public Enterprise confirmed that he had been selected on Wednesday.
He has appeared at the Moriarty tribunal in connection with his fundraising activities for Fianna Fáil in the 1980s and early 1990s. He was appointed secretary of the fundraising committee in 1982 by the-then leader of the party, Mr Charles Haughey, whose use of party funds has drawn controversy.
Mr Kavanagh was perceived to be a highly successful fundraiser although the party's expenditure during election campaigns was often greater than the amounts collected. The committee was disbanded when Mr Albert Reynolds succeeded Mr Haughey.
Mr Kavanagh joins the An Post board as the company deals with projected day-to-day losses this year of €30 million, which follow a €7.2 million deficit in 2001. Industrial relations at the company are difficult at the moment. Threatened strike action by staff in the Communications Workers Union was only narrowly averted late on Thursday night by the intervention of the Labour Court.
Political responsibility for An Post will transfer to the newly appointed Minister for Communications and Natural Resources, Mr Dermot Ahern. With RTÉ also in the ambit of the new Department, An Post's collection of the television licence fee is likely to come under renewed scrutiny. RTÉ argues the collection rate is not satisfactory and says the contract should be put to tender. An Post disputes that.
Before she left office, Ms O'Rourke also reappointed civil servant Ms Alice O'Flynn to the An Post board. Ms O'Flynn is an assistant secretary at the Department of Social, Community and Family Affairs.
Seen as a very able individual, Mr Kavanagh is a former chief executive of Irish Printers and former president of software firm Stream International. He also served on the boards of Telecom Éireann and IDA Ireland. For a brief period in 1989 he was a member of the Seanad.
He is currently involved in the Digital Hub initiative designed to create a high-tech business zone in the Liberties area of central Dublin.
Mr Kavanagh appeared at the Moriarty tribunal in connection with a fundraising drive to pay for a liver transplant in 1989 for the late Mr Brian Lenihan, Ms O'Rourke's brother.
Money for the fund was channelled through the party leader's account.
A number of wealthy individuals were approached, among them the businessmen Mr Ben Dunne, Mr Larry Goodman, Mr Oliver Barry, Mr J.P. McManus, Mr John Magnier and Dr Edmund Farrell.
