Former MI5 officer David Shayler gave evidence on Thursday
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Intelligence provided by an IRA informer known as Infliction was of "mixed reliability", according to an M15 officer.
However, the former boss of disgraced spy David Shayler told the Bloody Sunday inquiry on Friday she had no personal dealings with 'Infliction'.
The IRA agent alleged Sinn Fein's Martin McGuinness told him he fired the first shot on Bloody Sunday. Mr McGuinness has denied the informer's allegation.
Mr Shayler told the Saville Inquiry on Thursday that the informer had supplied intelligence to MI5 that was inaccurate.
The Saville Inquiry is examining the events of 30 January 1972 when 13 civilians were shot dead by British army soldiers during a civil rights march in Londonderry. A 14th person died later.
As far as I recall, I gained this impression from hearing others comment on
Infliction and/or his reporting and not from any written documents
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Mr Shayler's group manager in the section dealing with the threat on the British
mainland from Irish terrorism during the 1990s, Officer E, said she had been aware of the existence of Infliction for several years.
"Although I don't recall when I first heard this, I do have a general
recollection that his reporting was considered by others to be of mixed
reliability," she said.
"As far as I recall, I gained this impression from hearing others comment on
Infliction and/or his reporting and not from any written documents."
However, the MI5 officer said she was not an appropriate person to
comment on Infliction's reliability as she was not his handler.
MI5 has said Infliction was a leading member of the Provisional IRA and was close to Martin McGuinness.
On Thursday, Mr Shayler told the inquiry he first came across Infliction in 1993 while he was dealing
with another target and went to a source in Section T8, which ran agents, to seek
an assessment of his reliability.
He said the person he spoke to told him the agent was unreliable.
Judgement questioned
MI5 have challenged this evidence, with one of Infliction's handlers telling the tribunal on Wednesday that the informer was generally honest and reliable.
David Shayler was sentenced to six months in jail last year after being found in breach of the Official Secrets Act.
The inquiry, which usually sits at the Guildhall in Derry, is currently hearing evidence from military witnesses and others in London because of concerns for their safety.
Lord Saville of Newdigate and the Commonwealth judges accompanying him on the Bloody Sunday Inquiry began their work nearly four years ago.
They are not expected to report back until 2004.
The Bloody Sunday Inquiry was established in 1998 by Prime Minister Tony Blair after a campaign by families of those killed and injured.
They felt that the Widgery Inquiry, held shortly after the shootings, did not find out the truth about what happened on Bloody Sunday.