It was "common knowledge" that Mr John Ellis TD was facing bankruptcy in 1989, although it was a "sensitive matter" within the party, the tribunal heard.
Ms Eileen Foy, Mr Charles Haughey's former private secretary, said she knew of the TD's financial problems and knew Mr Haughey had given him money to "ease his burden".
The money was paid via two cheques in 1989-1990 totalling £26,000 drawn on the party leader's allowance account in AIB, Baggot Street, in Dublin.
Asked about her view of this, she said: "I don't know that I would have considered it an inappropriate use of the account at the time. It wasn't the normal use of the account, like bill paying etc."
Counsel for the tribunal, Mr John Coughlan SC, said it was clear the payment had an "overt political purpose" considering that if Mr Ellis had been declared bankrupt he would have lost his seat and the government could have been threatened.
Ms Foy said she had not discussed the payment to Mr Ellis with anyone apart from Mr Haughey. When asked if she learned of Mr Ellis's difficulties through the press or from someone else, Ms Foy said: "I really don't remember."
Asked how she was aware Mr Ellis was discussing it with Mr Haughey, Ms Foy said "because he received money from Mr Haughey".
Referring to Mr Bertie Ahern's role as a co-signatory of the cheques, Mr Coughlan asked: "Did you not think it appropriate that you should inform Mr Ahern who had entrusted you with pre-signed cheques that the fund had been used for a purpose other than which he might have expected it to be used?"
"I don't know whether Mr Haughey and Mr Ahern discussed this. I don't remember discussing it with Mr Ahern," she replied.
"And you didn't think it appropriate that you perhaps should have told him there were two rather substantial drawings on the account and if he had pre-signed cheques in the belief they would be used for the ordinary administration of the account, that it was something you should have brought to his attention?" asked Mr Coughlan.
"I honestly do not remember what my thinking at the time would have been," she replied.
Ms Foy said she was involved in preparing the cheques given to Mr Ellis.
"But to make out the cheque you would have to be given an explanation by Mr Haughey, isn't that right?" asked Mr Coughlan.
"Definitely for one of them [the cheques]. I remember the first one," said Ms Foy. She said she was probably given the same explanation for the second cheque but could not remember.