A compensation deal has been agreed with a former British army agent to prevent him from publicly revealing the identity of a top IRA mole, the Irish News has learned.
The financial deal has been agreed with Kevin Fulton, who tipped off RUC special that a bomb was being prepared in the Republic prior to the Omagh bombing.
Reliable NIO sources last night (Sun) confirmed that it has agreed to 'compensate' the former agent after he threatened to reveal the identity of another agent alleged to have been at the heart of the IRA for the last 30 years.
It is understood that the deal includes providing accommodation and a weekly allowance for the former soldier and has been in place since early December.
It addition it is understood that Fulton has been advised that if he was to sue the MoD the case would not be contested by the state.
The agent, who uses the pseudonym Kevin Fulton, refused to comment last night when contacted by the Irish News.
Fulton first came to prominence when it emerged that he had warned police about the Omagh bomb.
In 2000 it was revealed that Fulton had tipped off his police handlers three days before the Omagh attack that the Real IRA was preparing a major bomb destined for Northern Ireland.
While Fulton did not give the precise target, he named the bomb-maker and his whereabouts. He later questioned why the information had not been passed on to detectives.
It was later claimed that police had at least three other warnings that the Real IRA was preparing to bomb Omagh which resulted in the death of 29 people and two unborn children, but had failed to act.
In the aftermath of the Omagh inquiry Fulton fled to England claiming that his cover had been blown and that his life was now in danger.
An NIO source last night admitted that attempts had initially been made to use the Police Ombudsman's Office as a conduit to offer the compensation deal to Fulton, but that was abandoned after Nuala O'Loan's office refused to get involved.
But it is understood that one of Fulton's police handlers travelled to England late last year and advised the former agent he would receive 'compensation' if he dropped threats to reveal the identity of the IRA mole known as 'Steak-knife.'
"They are currently picking up the bill for his accommodation in England and have agreed to give him a new identity and buy a house for him although he has been told that they won't be giving him a pension," the source said.
An NIO spokesman refused to confirm or deny the compensation deal with the former agent last night saying it did not comment on "matters of personal security".
