Publican Dermot Carew told the Mahon tribunal yesterday that Bertie Ahern was "absolutely amazed" when he was presented with £16,500 in a pub in north Dublin in 1994.
The tribunal heard that Mr Carew, owner of the Beaumont House pub in Dublin, organised the "dig-out" for Bertie Ahern, then minister for finance, in September 1994 and personally contributed £4,500 to it.
The other contributors were Paddy "the plasterer" Reilly; the chairman of the Dublin Port Authority, Joe Burke, who contributed £3,500, and businessman Barry English, who gave £5,000.
Mr Carew said the friends met regularly in his pub on a Saturday night. One night, after "Bert" had left, the subject of his sleeping arrangements was discussed. The friends knew that Mr Ahern was living in a flat above St Luke's, his Drumcondra constituency office, or occasionally staying with Mr Burke's family, Mr Carew said.
He said he raised the subject and suggested that they make a collection to help him get a house.
Counsel for the tribunal Des O'Neill SC asked why the friends thought it necessary to raise money for Mr Ahern, given that he had a good job and the apartment over St Luke's had been refurbished for him. "He didn't have a need at the time for an additional residence," Mr O'Neill said.
"I thought he did," Mr Carew replied. "If he had sufficient savings I thought he would have bought a house."
The contributors did not discuss how much money they should each give or whether they would offer it as a loan or a gift, Mr Carew said. The men dropped into the Beaumont House individually about a week after the discussion and handed over the money to Mr Carew, in sealed packs or envelopes, Mr Carew added.
They agreed that the money would be in cash, because, he said, "he knew Bert" and "there was no way he'd have cashed a cheque if we gave it to him".
He put the money into a folder without counting it. He said he knew how much had been given because each donor had told him.
Mr O'Neill asked if he had given a receipt. Mr Carew said "are you joking me?" and added that he was dealing with pals.
Mr O'Neill also asked why two of the donors had given £3,500 if no amount was ever discussed.
"Pure coincidence I suppose, how would I know?" Mr Carew replied. Mr Ahern came in to the pub during the following week, Mr Carew said, and he went to his safe and took out the folder.
"I said, Bert, the boys and myself want you to have that," Mr Carew said. "It's a few pounds we collected towards the deposit on a house." He said Mr Ahern had cursed and said he didn't want it.
"I said the boys won't take it back, no feckin' way," Mr Carew said. He told Mr Ahern what each person had contributed and Mr Ahern agreed to take it as a loan.
Mr O'Neill asked if Mr Ahern had told Mr Carew that he had £20,000 in the Irish Permanent Building Society at the time, that he had £50,000 in cash savings, that he had recently been given £8,000stg from the Manchester dinner or that "another group of pals" had collected £22,500 for him.
Mr Carew said no. Afterwards, Mr Ahern offered to pay the money back but Mr Carew always "put him off".
Mr Ahern repaid the money with interest in September 2006, after the matter became public, the tribunal heard. However, Mr Carew decided, after discussion with friends, that he would not take the cheque but would sign it over to the Cari Foundation, a charity supported by Miriam Ahern, he told the tribunal.
Mr Carew said he signed it in St Luke's. He denied the suggestion by Mr O'Neill that he was "going to sign whatever was put in front of him".