Kildare building firm Faxhill Homes stopped sending inaccurate invoices to Dunnes Stores in February 1993, after work costing more than £800,000 (€1 million) had been done on the home of Mr Ben Dunne. The court has heard that Mr Dunne, who commissioned work on his home and that of the former Fine Gael Minister, Mr Michael Lowry, was no longer an executive with Dunnes Stores by March 1993.
Naas District Court heard that invoices sent by Faxhill Homes to Dunnes Stores for work on Mr Dunne's Castleknock home up to February 1993, incorrectly described the work as having been carried out on a Dunnes factory in Co Kildare.
Mr Ross Carr, financial officer with the building company, said he filled out the incorrect invoices because he copied the details from incorrect certificates for payment sent by the architect retained by Dunnes Stores, the late Mr Peter Stevens.
Mr Carr told the 12th day of the hearing yesterday that he realised something was wrong because the firm was spending money on work on the two homes, yet no money was coming in for that work.
When he made inquiries around February 1993, he discovered what had happened, carried out a reconciliation, and from then on sent invoices which correctly described the location of the work.
Replying to Mr David Conlan Smyth, for the Minister for Enterprise, Trade and Employment, Ms Harney, Mr Carr said it was not true that he had knowingly taken part in a tax evasion scheme.
Faxhill Homes "engaged in a tax evasion scheme on a grand level", Mr Conlan Smyth said. He put it to the witness that he and his company "knowingly and willingly colluded and collaborated".
Mr Carr said he would not accept that. "I sent out invoices based on the architect's certificates." Judge Thomas Fitzpatrick said the question of alleged tax evasion by companies or persons was not an issue for the court to try.
Ms Harney has brought 26 charges under company law against Faxhill Homes and its directors Mr John Tierney and Ms Jennifer Tierney. A guilty plea has been entered in relation to a further three charges.
Mr Conlan Smyth put it to the witness that his story was "completely implausible". Mr Carr said: "No." Mr Conlan Smyth said Mr Carr knew the invoices he was issuing were false. Mr Carr said: "No. I did not know. I've said that a few times now."
Judge Fitzpatrick asked about covering letters which accompanied certificates from Mr Stevens and which explained that the certificates were false. Mr Carr said he had not seen the covering letters and that they might have been sent in addressed to Mr Tierney, company managing director. Mr Carr said he would not open letters addressed to Mr Tierney.
Asked about covering letters from Mr Stevens which accompanied certificates and details of work carried out by sub-contractors, Mr Carr said he could not explain how he came to pay the sub-contractors.
"When I was paying the subcontractors, I should have realised there was something wrong," he said. In the period October 1992 to February 1993, more than £225,000 was paid out to sub-contractors. "I can't explain it. I have a problem with it," Mr Carr said. "Before I came into court, a few days ago, I went through all the documents and I noticed that problem."
Mr Carr said that when he noticed there was something wrong, he brought it to the attention of Mr Tierney. "He said he would contact Dunnes Stores. Mr Tierney later said it was being sorted."
The court heard that when the company's files were given to authorised officer, Mr George Maloney, in July 1998, the file on Mr Lowry's home was missing. Mr Carr said he found the file a week later in the office of Mr Denis McCoy. Mr McCoy had started working for Faxhill as a consultant and later as managing director, Mr Carr said. He said he had been told it was not true that Mr McCoy was formerly an employee of Dunnes Stores. The case was adjourned to May 21st.
