The former chief executive of Aer Rianta, Ms Margaret Sweeney, has "categorically" denied that she also received a €9,000 Cartier watch before the national airport authority was broken up.

In the latest development in the controversy over gifts to directors of the organisation, Ms Sweeney denied a weekend report that two watches were handed out during a dinner for directors which have not been accounted for.

A spokesman for Ms Sweeney confirmed that the former Aer Rianta chairman, Mr Noel Hanlon, gave out five Cartier watches, for himself and four directors, at the dinner in the King Sitric restaurant in Howth last month. He dismissed claims that seven, not five, watches were presented to those present at the dinner.

"Margaret got no watch, either at this dinner or at any other time. She may have been handed a watch during the dinner, which she then passed on to someone else."

Mr Hanlon has also denied that he received a second watch. Last week, after The Irish Times revealed details of the gifts, he offered to pay for four of the watches and to hand his own watch back.

The four directors who were the recipients of his generosity have all either offered to pay for the watches or to give them back to the company.

Official sources yesterday confirmed that Ms Sweeney used a technicality to qualify for her severance payment. The Aer Rianta board approved a severance package for her worth almost €800,000 including pension contributions, although she had served as chief executive for less than a year.

In order to qualify for the package under terms agreed when she was deputy chief executive, she stepped down from the position of acting chief executive, for which she had no written contract.

Last night, her spokesman commented: "The impression has been given that she had just arrived on the scene in Aer Rianta.

"In fact, she was there for over seven years, as company secretary, deputy chief executive and acting chief executive."