Solicitors acting on behalf of the Minister for Foreign Affairs, Mr Burke, have sent a letter to the Sunday Business Post concerning articles it published last weekend. The letter, from Dublin solicitors, Gore & Grimes, said that Mr Burke intended to initiate libel proceedings following publication of the articles.
The newspaper had interviewed Mr James Gogarty, a former building firm executive who handed over cash to Mr Burke in the politician's home in 1989.
Mr Burke said in a statement last week that he had received a £30,000 "unsolicited political contribution" from Mr Gogarty. He denied receiving cash from a director of another building company who was present.
Mr Gogarty has given a separate version of events to the Garda, who have offered him "qualified immunity" from prosecution if he signs a statement detailing his allegations.
A source close to Mr Gogarty said yesterday that it was likely he would sign a statement for the Garda within the next two weeks.
The source said that in recent weeks Mr Gogarty had been unwell and his solicitor had been on holiday. The likelihood was that a meeting between gardai, Mr Gogarty and his solicitor would be arranged later this week, or sometime next week, and a statement would be signed by Mr Gogarty.
Mr Gogarty's solicitor, Mr Kevin Neary, of Donnelly, Neary, Donnelly in Newry, Co Down, has said that Mr Gogarty will not be commenting to the media about the controversy pending the outcome of the Garda investigation.