Painstaking investigations by Mr Ahern's legal team finally uncovered the falsity of corruption and bribery allegations levelled against the Taoiseach by Cork businessman Mr Denis O'Brien, Dublin Circuit Civil Court was told.
Mr Paul Gallagher SC, told Judge John O'Hagan that two witness statements had ultimately proved fatal to Mr O'Brien's claim he was justified in making the groundless and prefabricated allegations against Mr Ahern.
He said a statement by Mr Con Murphy, a solicitor from Bandon, Co Cork, revealed that on September 17th, 1989 - the date Mr O'Brien claimed he bribed Mr Ahern in a State car in an underground car park behind the Burlington Hotel, Dublin - Mr O'Brien was fishing in Co Waterford.
A statement by Mr Michael Fingleton, managing director of Irish Nationwide Building Society, revealed that the account from which Mr O'Brien claimed to have drawn the £50,000 was forged and never existed.
Mr Gallagher, who appeared with Mr Rory Brady SC and Mr Jim O'Callaghan for Mr Ahern, said Mr O'Brien had withdrawn his defence when presented with this evidence.
He said a serious defamation of Mr Ahern had its origin in a false statement by Mr O'Brien to Frank Connolly of the Sunday Business Post in April 2000 to the effect he had alleged he had secretly given Mr Ahern £50,000 on behalf of a property developer, Mr Owen O'Callaghan, to help get planning permission for the Liffey Valley Shopping Centre. He said the story appeared on April 23rd, 2000, under a headline: "New Fianna Fail Bribes Probe could lead to Election" and evidence would show a senior politician referred to could only be Mr Ahern.
The story said Mr O'Brien had received a £100,000 cheque drawn on an AIB account of Mr Owen O'Callaghan and had lodged it in the Cork branch of the Irish Nationwide. It said he drew £50,000 from that account to pay Mr Ahern.
The money was handed over in a State car in an underground car-park at the Burlington Hotel, Dublin, at a function following the All-Ireland football final between Cork and Mayo on September 17th, 1989.
Evidence would be given by Mr Tom Barry, secretary of Cork GAA supporters' reception committee, that a reception for the Cork team had been held in the Royal Marine Hotel, Dun Laoghaire, on September 17th, 1989, and not in the Burlington.
Dr Mick Loftus, former GAA president, would state that a reception for the losing Mayo team was held in the Grand Hotel, Malahide, and not in the Burlington, and that a reception for both teams had been held in the Burlington on the following day, Monday, September 18th.
Two Garda drivers who drove Mr Ahern when he was Minister for Labour in 1989 would say they were not at the Burlington on that date and had never given the keys of a State car to Mr Ahern or that he ever asked for them.
Mr Gallagher said witnesses from the Irish Nationwide Building Society would prove that no such account from which Mr O'Brien said he drew £50,000 existed in his name. A witness from the AIB in Cork would state that Mr O'Callaghan or any of his businesses never had an account with it on which the alleged £100,000 was drawn.
Once discovery had been made of documents upon which Mr O'Brien purported to rely, it was possible to establish that he was relying on an Irish Nationwide passbook which turned out to be a forged document.
Mr Gallagher said Mr O'Brien's story had started to unravel when Mr O'Callaghan swore an affidavit stating he had no documents relating to any account with the AIB in South Mall, Cork, and Mr Fingleton had sworn his affidavit revealing that an INBS account he purported to rely on was false and a forgery.