The issuing of a passport to businessman Norman Turner in 1994 was "in accordance with normal procedures", the Government said in a statement tonight.
It emerged earlier that Taoiseach Bertie Ahern assisted the Manchester-based businessman, who was involved in the Sonas consortium which planned to develop the Phoenix Park racecourse as a casino.
The passport application was returned via Mr Ahern's office, Fine Gael established through Dáil questions by the party's environment spokesman Phil Hogan.
Mr Hogan said this "close relationship" with Mr Turner was "completely at odds with the Taoiseach's continuous claim that he opposed the casino project in Government and in opposition".
However, a statement issued by the Government Press Office tonight said any suggestion of impropriety was "totally without foundation".
"Deputy Phil Hogan was informed in reply to a written parliamentary question that the passport was issued on 9 thAugust 1994 and this was done in accordance with normal procedures for applications forwarded by the offices of the Members of the Houses of the Oireachtas," the statement said.
It was it was "amazing" that RTE's 9pm news report "did not give this statement prominence in its coverage". The statement pointed out that Mr Turner acquired Irish citizenship through his mother who was born in Cork in 1929.
"This was Mr Turner's entitlement and in full accordance with existing citizenship laws," it added. "The suggestion that there was anything in any way out of the ordinary relating to a passport application being returned through the offices of Bertie Ahern TD is absolute fallacy."
