Irish PM repays controversial loan, RTE says

DUBLIN, Oct 1 (Reuters) Irish Prime Minister Bertie Ahern has repaid a controversial loan he received from friends during his time as finance minister, the public broadcaster RTE reported today.

Ahern -- premier since 1997 and facing an election within nine months -- came under fire last week after a newspaper published information about payments he had received in 1993 and 1994. He is due to face questions on the matter in parliament on Tuesday.

Ahern said in a televised interview last Tuesday that he had received 50,000 euros (63,320 dollars) in what he described as loans from friends, which he had not repaid.

But a further amount of 8,000 pounds sterling (,950), which he received as a speaking fee 12 years ago, remains the subject of greatest controversy.

Opposition parties and Ahern's junior coalition partner in government, the Progressive Democrats, have demanded Ahern explain the matter fully at a special parliamentary debate on Tuesday. Some commentators speculate that if he fails to do so satisfactorily it could topple the government.

RTE said today that Ahern had made out cheques covering the 50,000 euros in loans, plus interest.

''Publican Charlie Chawke (one of the donors) said this morning that he had passed on some 60,000 euros to the charity, CARI, which raises money for victims of child abuse,'' RTE said on its Web site.

RTE said it understood Ahern had made out cheques totalling over 90,000 euros in all.

However, questions remain over the fee Ahern received after attending a dinner for Irish businessmen in Manchester in 1994.

The prime minister insisted last week he had done nothing wrong in accepting the money, and that had not spoken at the dinner in his then-capacity as finance minister.

But his government allies and political opponents were unconvinced.

''Public confidence and the sustainability of the government requires that these issues be addressed,'' the new leader of the Progressive Democrats and deputy prime minister, Michael McDowell, said last week.

Enda Kenny, the leader of the main opposition party, who has so far declined to call for Ahern's resignation, said his position ''could well become untenable''.

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