Ms Beverly Cooper-Flynn, the Fianna Fail TD for Mayo, is denying that she ever encouraged anyone to invest in a financial product "as a means of evading his or her obligations to pay tax".
This follows claims made last night by RTE that Ms Cooper-Flynn, while working for National Irish Bank (NIB), had assured investors who bought into offshore bonds schemes that their money would be "safe" from the Revenue Commissioners.
The RTE report, by Charlie Bird and George Lee, carried interviews with unidentified investors who said Ms Cooper-Flynn had advised them to put their money into offshore bonds to avoid tax.
Ms Cooper-Flynn is acknowledging, however, that during her seven years with the bank prior to being elected to the Dail last year, she was "one of a number of bank employees engaged in selling a wide range of financial products of which the CMI (Clerical Medical International) products represented a small percentage".
ail TD for Mayo She has also confirmed her previously stated intention to co-operate fully with any official investigations into the controversial offshore investments scheme, including the current inquiry being conducted by High Court inspectors.
Both the Taoiseach, Mr Ahern, and the Tanaiste, Ms Harney, refused to be drawn directly into the latest ethics allegations to hit the Coalition.
A Government spokesman would only state last night that the Government, through the Tanaiste, had established an investigation into all of these matters and secured the appointment of two High Court inspectors to ensure the fullest possible investigation. "We will await the result of their investigation", their statement said.
Asked by The Irish Times last night if she would be taking legal action against RTE, Ms Cooper-Flynn responded: "I don't want to add anything more to what I have stated".
In a statement issued through the Fianna Fail press office at 7.30 p.m., Ms Cooper Flynn, who is the daughter of EU Commissioner Mr Padraig Flynn, said that she could not identify any of the anonymous contributors to the RTE report.
"But I would deny that I would ever have said, or did ever say, anything to them or to any other investors in such products that could have been construed as representing such products as a means of facilitating tax evasion. It was not, however, my function to advise on the personal tax affairs of any such investors," she stated.
In a statement last night NIB said matters relating to CMI offshore bonds and other matters are being examined by several investigations initiated by the State. "Each of these has extensive powers and is receiving the full co-operation of NIB in ensuring that confidence is maintained in the Irish banking and financial services system as a whole.
"Any new allegations will be dealt with as part of this process." Ms Cooper-Flynn had refused, up to last night, to comment on her role in NIB. She told The Irish Times at the end of January that she was precluded from doing so because of a confidentiality clause in her contract. She had not discussed it with the Taoiseach or been asked to take part in any investigation. "If asked to co-operate, of course I would be happy to do so," she said.
Ms Cooper-Flynn's comments came after E news reported that investors who bought into offshore bond schemes marketed by NIB, have claimed Ms Cooper-Flynn assured them their money would be "safe" from the Revenue if it was invested in the bonds.
The man claimed that when he said he thought he should "take back the money for the [tax] amnesty" Ms Cooper-Flynn said: "There's no point, we'll keep this. Why give the government 15 per cent." The man said he was "absolutely certain" she had said this.
Before her election last June, Ms Cooper-Flynn worked for the NIB Financial Services Ltd (NIBFSL), a subsidiary of NIB involved in the marketing of CMI and other offshore bonds.
Earlier this week a former Supreme court judge, Mr Justice John Blayney, and accountant Mr Tom Grace were appointed by the High Court to inquire into the sale of offshore bonds by NIBFSL. Approximately £48 million invested in 499 policies is involved. During the hearing a senior official with the Department of Enterprise, Trade and Employment, Mr Paul Appleby, said the Tanaiste believed there were "circumstances suggesting the company's affairs have been conducted with intent to defraud the Revenue Commissioners".