Lowry company notches up a record £73,647 profit

The refrigeration company owned by the former Fine Gael minister Mr Michael Lowry made profits of more than £70,000 in 1997, by far the best recorded year for the firm since it was incorporated in 1989.

Accounts for the year to December 31st 1997, the latest year for which records are available at the Companies Registration Office, indicate Garuda Ltd, trading as Streamline, made profits of £73,647 (€93,512). The indebtedness of the company is given as £105,591.

The company's accounts show that since 1989, when it made a profit of £11,175, its performance has alternated between profit and loss almost on a yearly basis.

The profits range from £26,660 (in 1996) to £2,555 (1991) and the losses from £32,583 (1990) to £4,588 (1993). However the balance for the period 1989 to 1997 is a loss of approximately £34,500.

The McCracken tribunal heard Garuda was set up on the suggestion of Mr Ben Dunne and worked solely for Dunnes Stores. Its books were kept by Oliver Freaney & Co, auditors to the Dunnes group.

In the period up to 1993, when he was removed from his position as head of the group, Mr Dunne paid "bonuses" to Mr Lowry while Garuda showed small profits or losses in its books.

The tribunal found that in many cases the bonuses were paid in such a way as to facilitate Mr Lowry in evading tax.

In December 1996, when Mr Lowry resigned as Minister for Transport, Energy and Communications, he said he was still owed a "considerable but undetermined sum of money" from Dunnes Stores arising from the arrangement he had with Mr Dunne.

However it is understood that no further payments have been made by Dunnes Stores in relation to the period.

The accountancy firm Brophy Butler Thornton, Foxrock, Dublin 18, took over as auditors to Garuda in July 1997. In its auditor's report on the 1997 accounts it notes there is "no satisfactory audit procedures that we could adopt to determine the potential liability " arising from the McCracken tribunal findings.

The Revenue is in communication with the company and no provision is made in the accounts to cover any liability arising from the communication, the auditors note.

The Moriarty tribunal, which is inquiring into the finances of Mr Lowry and the former Taoiseach, Mr Haughey, is to resume public hearings next Tuesday and is to begin hearing evidence concerning Mr Lowry.