Irish PM in shock resignation

Irish PM in shock resignation

By John Murray Brown in Dublin

Published: April 2 2008 12:28 | Last updated: April 2 2008 20:25

Bertie Ahern – one of the architects of the Northern Ireland peace agreement – on Wednesday caved in to the growing pressure about his private financial affairs by announcing his early resignation as Irish prime minister.

In an emotional statement flanked by ministers from his populist Fianna Fáil party, Mr Ahern – one of Europe’s longest-serving leaders – said he would tender his resignation on May 6, implying he still intended to fulfil a historic invitation to address both houses of the US Congress this month. Brian Cowen, the deputy premier and a close ally, will start as clear favourite to succeed him.

His departure will allay European concerns that allegations swirling around him would undermine the coalition government’s efforts to win a referendum on the new EU reform treaty, on which the Irish are expected to vote at the end of May.

Mr Ahern, the longest-serving Irish prime minister of modern times, said his decision had not been influenced by “recent developments”, insisting he had never received a corrupt payment during his career in politics.

He declared: “I have never done anything to corrupt my office. I know in my heart of hearts that I have done no wrong and wronged no one.”

However, in an oblique reference to the upcoming referendum, he acknowledged that what he called the “constant barrage” of commentary about his financial affairs was a political distraction in this “important period for our country.”

Mr Ahern, who became prime minister in 1997, presided over the country’s most successful economic period and was a key player in the breakthrough peace deal in Northern Ireland, which sees rival unionists and republicans – once sworn enemies – sharing power in a four party coalition administration.

But public attention has been increasingly focused on his financial affairs, which are the subject of ongoing questioning at a judicial inquiry looking into planning corruption in Dublin in the early 1990s.

It was Mr Ahern who established the inquiry. He was called as a witness only after allegations from a developer that he had taken cash payments when he was finance minister in the early 1990s.

Mr Ahern’s defence was not helped by his own, sometimes confusing, evidence. He described the cash amounts in his bank at the time as “a dig out” [loan] from friends to help pay the cost of his marital separation.

Recent polls suggest large numbers of the public no longer believe his evidence. Estimates in the Irish media have suggested the total of all the various sums in question could be in excess of €500,000.

However, the most attention has focused on up to €90,000 placed in his account and those of his daughters. His difficulties mounted last week when his former secretary appeared to contradict his own account of the origins of the cash.

The Irish leader’s fate was then in effect sealed last week when – in the wake of her evidence – he faced calls from his two coalition partners, the Greens and the right of centre Progressive Democrats, to make a statement on the issue to clear the air.

His decision to stand down was interpreted on Wednesday as tacit acknowledgement that the allegations may become more embarrassing, and he was anxious to avoid a situation where he was forced out of office under a cloud.

But analysts believe his departure could now have a critical – and positive – bearing on the result of the upcoming referendum on the future of an enlarged Europe – which can now longer be run as a plebiscite on his premiership.

Ireland is the only EU country ratifying the Lisbon treaty by referendum rather than a process of parliamentary assent.

Mr Ahern suffered the ignominy of having to restage a plebiscite to approve the Nice Treaty after voters rejected it first time round.