Bill O'Connor, formerly of LA-based Chilton & O'Connor investment bankers, told the Sunday Tribune a "disgraceful allegation" was now being made "to the effect that I or my company made a payment to Mr Ahern TD.

"No payment of any kind was made, or offered, to Mr Ahern (or Mr Reynolds) by me, my former company, or any company employees or agents. Any suggestion to the contrary is entirely absurd, irresponsible and defamatory, " O'Connor said.

He said that he felt compelled to make a statement out of "disgust and anger" stemming from the "inexcusable behaviour" of journalists and photographers sent to California by a UK Sunday newspaper.

O'Connor insisted he had only one meeting with Bertie Ahern, in 1994, and Ahern had no interest in the proposal. The Mahon tribunal is currently investigating an allegation that Ahern received money from O'Callaghan . . . a claim vigorously denied by both men.