McAleese has been involved for three years in contact with the UDA, which has murdered around 450 people since the Troubles began.

Last month's IMC report said it was still steeped in violence and criminality. A government source said senior Department of Foreign Affairs officials viewed Martin McAleese's contact with McDonald as "a time bomb waiting to go off".

The source said: "He [Martin McAleese] is in very dodgy territory . . . an unelected individual acting with the clout of his wife's office raises constitutional issues."

The Sunday Tribune has been told Martin McAleese's involvement with the UDA can become entangled with Department of Foreign Affairs officials' work, with joint collaboration in organising some projects.

In 2003, McDonald and Martin McAleese famously played golf together at the exclusive K Club in Co Kildare.

A government source said the McAleeses thought they were helping peace but were "naive".

Martin McAleese's initiative is fully supported by his close friend, foreign affairs minister, Dermot Ahern.

But two separate government sources told the Sunday Tribune that the Department of Foreign Affairs secretary-general, Dermot Gallagher, disagrees with the minister and has voiced serious concerns about Martin McAleese's activities.

A Department of Foreign Affairs spokesman denied Gallagher was dissatisfied with Martin McAleese's activities.

Many in SDLP ranks are increasingly worried about the situation: "It's not a case of double standards, it's a case of no standards, " said a senior source. "The apparent [UDA] transition from baseball bats to golf clubs doesn't wash."

An Aras spokeswoman declined to answer specific questions from the Sunday Tribune on Martin McAleese's meetings with McDonald, what financial packages he'd secured for loyalist areas, and if this was appropriate activity for the head of state's spouse.

She said the McAleeses were "engaged in a wide-ranging programme of outreach to all sections of the community in Northern Ireland in the best interests of consolidating lasting peace".