The Moriarty tribunal has found that the late Charles Haughey took payments of €11.56 million, the equivalent of up to €45 million in today's money, between 1979 and 1996, and granted favours in return.
The tribunal found that the scale and secretive nature of the payments "can only be said to have devalued the quality of a modern democracy".
The Haughey family last night strongly disputed the findings of the tribunal report, saying it was with "great sadness" that they were making a public statement. "It is the first time we as a family have ever commented publicly on any matter relating to the late Charles J Haughey. We are issuing this statement because we believe that allegations of political corruption or misuse of office are unfounded on the basis of the evidence."
In his report the tribunal chairman, Mr Justice Michael Moriarty, found that in return for the money he received from businessman Ben Dunne, Mr Haughey "acted with a view to intervening improperly in a pending tax case of great magnitude".
He said that by facilitating meetings between Mr Dunne and two successive chairmen of the Revenue Commissioners, the then taoiseach was signalling "his support for a radical reduction in the amount of tax being demanded by the Revenue" from the Dunne family trust. At the time the Revenue was seeking £38.8 million in capital gains tax from the trust.
Mr Justice Moriarty also found Mr Haughey directed the granting of an Irish passport to a Lebanese girl in 1989, because of her connection to Saudi sheikh Mahmoud Fustok, who gave £50,000 to Mr Haughey in 1985.
While only a limited number of decisions made by Mr Haughey to facilitate donors had been identified, Mr Justice Moriarty said, "this cannot and does not give rise to a finding that all other acts or decisions in public office on the part of Mr Haughey during the relevant years were devoid of infirmity".
Most of the payments to Mr Haughey were "secretive, opaque and frequently involved offshore vehicles", he said, and it was difficult to see why that would be necessary if the payments were "in all respects proper and accountable".
He also found the fundraising drive for the late Fianna Fáil minister Brian Lenihan in 1989 raised as much as £265,000, but that no more than £70,283 was used for Mr Lenihan's medical treatment in the US. "The tribunal is satisfied that a sizeable proportion of the excess funds collected was misappropriated by Mr Haughey for personal use."
In the section dealing with Mr Haughey's misuse of the Fianna Fáil leader's allowance, Mr Justice Moriarty referred to the role played by the then minister, Bertie Ahern, as a co-signatory on the account. He said Mr Ahern's practice of signing large numbers of blank cheques for "administrative convenience" was "inappropriate and imprudent" and "undoubtedly facilitated the misuse of the account by Mr Haughey". However, he was satisfied Mr Ahern had no reason to believe the account was being operated in other than an orthodox fashion.
The Haughey family claimed the report was "perverse" on three key issues. They were: findings in relation to the payments from Mr Dunne; the passports finding; and the finding on the use made by Mr Haughey of money from the Lenihan fund.
Taoiseach Bertie Ahern said significant measures of reform and safeguards had been introduced as the tribunal's work was in progress. He indicated the Government would consider the report to see if further initiatives were required.
The Tánaiste and leader of the Progressive Democrats, Michael McDowell, said lessons should be learned from this "highly controversial" period of Irish politics. "It reminds us why the highest ethical standards must be explicitly stated and adhered to in any democracy."
Fine Gael leader Enda Kenny launched a blistering attack on Mr Ahern and his party.
"The findings confirm that a culture of corruption, self-enrichment and abuse of public money was prevalent at the top of Fianna Fáil for many years. Fianna Fáil throughout the 1980s and 1990s consistently failed to distinguish between the people's money and the party's money, and the public interest from the party interest."
Labour Party leader Pat Rabbitte said the report was "a damning indictment not just of the record of Mr Haughey but of the entire political culture in Fianna Fáil ."
The issue of costs will not be ruled on until the tribunal has completed its work. It will publish a second and final report next year on matters relating to former Fine Gael minister Michael Lowry. The strength of the findings against Mr Haughey raise the prospect that his estate could be refused its legal costs.
