Mr Michael Lowry can give a "reasonable explanation" to the Moriarty tribunal as to why he was given £150,000 by a senior Smurfit executive in 1996, sources close to the former minister said last night.
They also said it was not the case that the tribunal learned about the transaction only recently because it was a sensitive, hidden transaction. The money, which was lodged to an offshore account, was repaid within a few months.
The tribunal is to resume public hearings next week. Two controversies concerning Mr Lowry have come up recently, involving the late Mr David Austin, a Jefferson Smurfit executive and senior Fine Gael fund-raiser.
Mr Austin has also been mentioned in tribunal evidence about a £60,000 payment from the Smurfit Foundation intended for Fianna Fail which went to Mr Charles Haughey.
The chairman and chief executive of Jefferson Smurfit group, Dr Michael Smurfit, refused to respond to questions about Mr Austin at the company's annual general meeting in Dublin yesterday.
A Fine Gael spokesman said the party knew nothing about an apparent loan from Mr Austin to Mr Lowry.
The tribunal is believed to be investigating a payment of £150,000 to an offshore account for Mr Lowry in late 1996. The money, which had come from Mr Austin, was repaid some months later with interest.
It was not clear last night whether the money was repaid before or following Mr Lowry's resignation as minister for transport, energy and communications in December 1996.
In March it emerged that in late 1995 Mr Austin had approached Mr Denis O'Brien, the founder of Esat Telecom, for a contribution to Fine Gael. A $50,000 donation was eventually made by Telenor, the Norwegian company which owned 40 per cent of Esat Digifone.
Fine Gael was unhappy about receiving such a donation as Mr Lowry had just awarded a mobile phone licence to Esat Digifone. Mr Austin kept the money in an offshore account he had in Jersey, before passing the money on in May 1997 but without mentioning Esat or Telenor.
The Moriarty tribunal heard evidence from Mr Lowry for four days in June 1999, when it was learned that extensive investigations had been made into 19 bank accounts linked to him, both domestic and offshore.
The tribunal also heard evidence of how in July 1996 the late property developer, Mr Michael Holly, bought a house in Blackrock, Co Dublin, at auction for £200,000 and offered it to Mr Lowry for that price.
Following Mr Lowry's resignation in December 1996 he resold the Carysfort Avenue house to Mr Holly for £223,000. The sale was completed in January 1997.
