Mr Charles Haughey asked a former Fianna Fail minister to make a financial contribution to Celtic Helicopters, a company jointly owned by the former Taoiseach's son, Mr Ciaran Haughey.
Dr John O'Connell, a former minister for health, said he contributed £5,000 in March 1985 shortly after the request. He later discovered this entitled him to company shares, which Mr Charles Haughey agreed to buy back for three times the original price on the day he resigned as Taoiseach in February 1992.
Mr Haughey has denied seeking a contribution from Dr O'Connell but would give evidence to say that Dr O'Connell knew the payment was an investment, Mr Haughey's counsel said later.
Meanwhile, Mr John Barnacle, the other joint owner of Celtic Helicopters, said the former Taoiseach was never a shareholder and had no involvement in running the firm.
Dr O'Connell originally said Mr Haughey had solicited the payment in Government Buildings. But he later said this recollection was incorrect as Mr Haughey was not in government in early 1985.
He said: "Mr Haughey told me he was asking a few friends to make a contribution of £5,000 each. I joined the party in January 1985, and this was in March. I presumed that a lot of members of the party had been asked to contribute."
Dr O'Connell said he did not expect to hear anything back about the payment. But around 1991 Mr Haughey informed him he had shares in the company which he never received. Mr Haughey said at the time "if ever you want a lift in a helicopter don't hesitate to ask". Dr O'Connell added: "I don't think he meant that as payment for the investment or the money or the contribution."
Some time later Mr Haughey asked if he could buy back the shares. Dr O'Connell said if he wanted them he would have to pay £15,000.
Mr Haughey accepted the arrangement on the day he resigned as Taoiseach. "He sent for me and when I went up he was very upset about his position that day and he said he had received a phone call from Bob Hawke from Australia saying that there was life after politics," said Dr O'Connell. But the payment was not immediate.
Dr O'Connell instructed his solicitors to send a letter in March 1992 to Mr Ciaran Haughey seeking a shares certificate, that it be sent to him as soon as possible, and that Mr Haughey reply by no later than March 11th. Dr O'Connell accepted this was a device to get Mr Haughey to honour the agreement.
In October 1992 Mr Haughey told him he would give him the money at a convention centre in Donnycarney in Dublin. Dr O'Connell said Mr Albert Reynolds attended the Fianna Fail convention at which, he believed, Mr Haughey's son was going forward for nomination for elections.
Mr Haughey handed him the cheque at the centre. Dated October 2nd, 1992, it was drawn on the Irish Intercontinental Bank No 1 account from Bank of Ireland. It was not signed by Mr Haughey.
Counsel for Mr Haughey, Mr Paul Gardiner, said to Dr O'Connell: "Mr Haughey's recollection is that at all times it was clear that you were making an investment in Celtic Helicopters." But Dr O'Connell said: "I knew nothing about an investment. I was just asked for a contribution."
Dr O'Connell was a Labour TD between 1965 and 1981, and an independent TD from 1981 to 1985, during which time he served as Ceann Comhairle to the Dail.
He was a Fianna Fail TD from February 1985 but lost his seat in 1987. He was re-elected to the Dail in 1989 and was a backbencher from 1989 to 1992.
He was appointed minister for health in March 1992 under Mr Reynolds's government and resigned from the position in February 1993.
Earlier Mr Barnacle told the tribunal Mr Haughey was never a shareholder in Celtic Helicopters or a director. Nor would Mr Haughey have been involved in the company's conduct in any way, he said. Mr Haughey was a client and paid for all of his flights.
But regarding Dr O'Connell's March 1992 letter for a certificate of shares, Mr Barnacle said Mr Ciaran Haughey said he would raise the matter with his father.
Counsel for the tribunal, Mr Jerry Healy SC, asked how he knew Mr Ciaran Haughey dealt with the matter.
Mr Barnacle said: "He told me. He took the letter and discussed it with his father and left it with him and that was the last that either of us heard of it."
Mr Healy SC then asked why Mr Charles Haughey should have been consulted if he was not involved in the business.
Mr Barnacle said: "That would probably be father and son, not father and company."