Mr Joseph Malone, a former director general of Bord Failte, was asked by Mr Charles Haughey to become chairman of Celtic Helicopters, the tribunal heard yesterday.
Mr Malone said the former Taoiseach also twice asked him to invest in the troubled aviation company, which was founded by Mr Haughey's son, Ciaran.
Both Mr Ciaran Haughey and Mr John Barnacle, a co-director of Celtic Helicopters, have said the former Taoiseach had no involvement in the running of the firm.
However, Mr Malone said Mr Charles Haughey asked him around 1984 to become chairman of the helicopter company which his son was setting up. As he was then a director of Aer Lingus, Mr Malone declined the invitation because of a possible perceived conflict of interest.
About a year later, Mr Malone was at a hospitality function when he was again approached by Mr Haughey and asked to invest in the company. Mr Malone recalled: "Ciaran happened to come in and Mr Haughey said to Ciaran `tell Joe and his friends all about Celtic Helicopters, your new investment', or `your new company'. Then - it was a kind of an off-remark - the suggestion was made, `perhaps you would like to invest in it'. "
Mr Malone said he felt Mr Haughey was offended at his earlier refusal to accept chairmanship and, in view of the friendship between his son, Mr Joe Malone jnr and Mr Ciaran Haughey, he agreed to buy £15,000 of shares in Celtic Helicopters. Mr Malone specified that the shares be kept in his son's name.
At this time, Mr Malone had joined the Smurfit Group, having left the post of director general of Bord Failte in 1982.
Mr Malone was approached by the former Taoiseach to invest in Celtic Helicopters for a second time around 1991 or 1992, when the company was being restructured. He declined the invitation on that occasion.
