]The former government minister, Mr Ray Burke, broke the law when he ignored exchange control regulations in the 1980s, the tribunal heard yesterday.
The former Fianna Fail politician agreed he broke the law when he operated offshore bank accounts without Central Bank approval, and when he took £15,000 sterling from Ireland to Jersey, having first withdrawn it in London. "I'm quite prepared to accept that I should have applied for exchange control documentation. I didn't at the time," he said.
Under the regulations Irish residents holding UK accounts had to close them by March 1979, unless they had Central Bank approval to keep such accounts. Mr Burke said Central Bank approvals were "technical things". "To that extent, Mr chairman, I was deficient in carrying out my paperwork."
The controls also limited the amount of money taken out of the State and put restrictions on foreign currency held in the State. "Did you think you were above the law?" Mr Patrick Hanratty SC, for the tribunal asked.
"Never," replied Mr Burke.
He denied it was inappropriate for a public office-holder to keep funds abroad and said the funds were legitimate political donations. "There was no tax evasion involved," he said.
The tribunal heard Mr Burke held an account in Jersey from 1984 to 1994. During that time he held ministerial positions for justice, energy and communications, industry and commerce and justice.
Pointing out that political donations were not liable for gift tax, Mr Hanratty asked why Mr Burke did not leave those funds in Ireland. Why did he run the gauntlet of setting up offshore accounts and using different initialled names on the bank accounts if the funds were legitimate?
Mr Burke said it was for confidentiality purposes, and because the funds were mainly raised abroad.
He was also questioned closely on why he took £15,000 in cash from his Jersey account while in London, brought it to Dublin and then went to Jersey 10 days later to relodge the money.
Mr Hanratty suggested this was an illogical and implausible scenario. "I was never the most organised of individuals in looking after my own affairs," Mr Burke replied.
He rejected Mr Hanratty's suggestion that the £15,000 lodged in Jersey came from a different source. "I have no trace of anything and no knowledge of any other £15,000 from any other source," he said.
Mr Hanratty also asked why elaborate instructions for contacting Mr Burke were noted on his file by his Jersey legal firm. The instructions ordered that any correspondence be put in an unaddressed envelope marked "Private and confidential" for the attention of Mr A. Burke; then put in another envelope and sent to Mr Burke's solicitors in Dublin.
"I don't know about that at all," Mr Burke said.
