In the Dail on Wednesday, he said, "It is well known that I have been very closely associated with a number of organisations in Manchester. I have been involved with St Patrick's Day events, charity groups, the Dublin Association and the Irish World Heritage Centre. There are a good few business groups in Manchester and I believe I have spoken to them all."

As Ahern addressed a media scrum outside St Claire's College in Ballyjamesduff, Co Cavan last Thursday, he sparked further controversy in one of the worst weeks of his political career by elaborating on his Manchester connections.

He denied that he had any tax or ethical questions to answer in relation to the stg£8,000 he received from a group of around 25 Irish emigrant businessmen in Manchester when he was minister for finance in 1994.

Just as Ahern thought he had found room to brush the issue under the carpet . . . by saying that he was "promoting the country in his own spare time";

there "was no official script"; he was not there in his capacity as minister; and had paid his own way . . . John Kennedy entered the frame.

Speaking on RTE's Six One news on Friday, Kennedy . . . one of the businessmen who was present at the dinner at which Ahern received the money . . . said the payment was neither a political donation nor a loan.

Concurring with Ahern, Kennedy said that Ahern was there as a private citizen. He said that the dinner was organised by the late Tim Kilroe . . . the owner of Aer Arann . . . and held at the Four Seasons hotel in the city.

Kennedy confirmed that the Mahon tribunal had been in touch with him about the collection that was made at the function. In what appears to be a contradiction of Ahern's recollection of the event, Kennedy said that Ahern did not speak at the event.

When contacted at his Cheshire home by the Sunday Tribune this weekend, Kennedy said, "It is on the public record what I said to RTE about the dinner and I will not be making any further comment on it."

Kennedy, who is now retired, is typical of so many Irishmen who emigrated to Manchester in the 1950s and made it big in business.

His brother, Joe, is the chairman of Knock International airport. From Doocastle, Co Mayo, Joe Kennedy emigrated as a young man to the UK and, from humble beginnings working on farms in Lincolnshire, he developed a hugely successful construction business around Manchester.

He has been involved in major developments around the Lancashire city and, like so many Irishmen in the northwest of England, he is an avid Manchester United fan.

Speaking in 2003, he said, "Sir Alex Ferguson is a particularly good friend of mine since we met several years ago. We love to meet, share in a wee glass of wine and a song or two."

It is not clear if Joe Kennedy was one of the men who attended the dinner in Manchester with Ahern in 1994, though he is typical of the group of successful Irish emigrants who mix in circles that Ahern often frequents.

Amid the controversy over the Manchester dinner, a story which first appeared on Village magazine's website last Friday evening and the Irish Independent yesterday has now cast further doubt over Ahern's relationship with Manchester.

It has emerged that, around the time of the Manchester dinner in 1994, Ahern was a paid-for guest of a controversial Manchester businessman on a number of occasions.

Ahern was entertained at Old Trafford by Norman Turner, who was the main promoter of a proposed £200m stadium, hotel and gambling casino at the former Phoenix Park racecourse . . .

the Sonas Centre.

The late Liam Lawlor had previously claimed that one of Ahern's closest political associates offered him £100,000 to help secure planning permission for the project. Ahern opposed Turner's casino, hotel and stadium project, even though it received planning permission from An Bord Pleanala.

The Taoiseach said he intends to deal with the Manchester dinner controversy in the Dail on Tuesday. It now looks like he will have further questions to answer about his connections in that city.