Mr Michael Bailey told the tribunal he was the victim of a "total set-up" by Mr James Gogarty which he could not explain.
He was answering questions from his counsel, Mr Colm Allen SC, who said Mr Gogarty had painted a picture of a plot involving Mr Bailey to "corrupt a politician".
Mr Allen asked Mr Bailey why Mr Gogarty had painted such a picture in his affidavit. "I honestly believe it was a total set-up, that is my honest view," replied Mr Bailey.
He said reading sections 43 to 68 of Mr Gogarty's affidavit showed it was "the basis for a setup, and I honestly believe that is what happened to me". He did not understand what was in Mr Gogarty's mind when he did this.
Mr Allen said Mr Gogarty did more than paint a picture, but claimed that Mr Bailey was a willing party to corruption. "Were you at any time party to any such arrangement?" he asked Mr Bailey.
"Absolutely not," he replied.
"He has sought to impugn you, in so far as he has sought to bring you down and destroy your reputation and to expose you in the way he has succeeded in doing," said Mr Allen.
Mr Brian O'Moore, for Mr Gogarty, objected and said the accusation of a "set-up" had not been put to Mr Gogarty when he was giving evidence.
Dealing with the admission earlier in the week that Mr Bailey had lied to Sunday Business Post journalist Mr Frank Connolly, Mr Allen asked Mr Bailey if he knew "it was a sin to tell lies to journalists". He said he did not.
"Did you ever feel yourself under a compulsion to tell the truth to people who pester you on the phone about your private business?"
"None", said Mr Bailey.
"Are you in any way ashamed or do you make any apologies for what you did or didn't say to Mr Connolly?" Mr Allen asked.
"No I don't," he said
"Mr Connolly was sniffing after you, isn't that correct, he's a news hound," said Mr Allen.
"He was doing his job, I suppose," said Mr Bailey.
"Yes, that's fair, he was sniffing," said Mr Allen.
"It was your behind he was sniffing at, isn't that correct," said Mr Allen.
At this point Mr Justice Flood said Mr Allen should stick to the "parliamentary side of language, please".
"Well your rear quarters in any case," Mr Allen commented. He also said there were "shenanigans going on between Mr Connolly and Mr Gogarty".
Mr Allen asked Mr Bailey about the small notebook used by Bovale Developments to record off-the-book payments, including three made to Mr James Gogarty.
"You have not been able to produce to this tribunal or the chairman records relating to the remainder of the payments, isn't that correct?" said Mr Allen. "That is correct," Mr Bailey replied.
"Is not the reason for that, these payments were made in cash?" said Mr Allen. "That's correct," said Mr Bailey. Mr Allen said Mr Bailey would have to "face up" to the fact the payments were not recorded in the company's books of account.
Mr Bailey then answered questions about the letter of June 8th, 1989 when he said he could procure planning permission for the Murphy lands. "You would have found yourself lobbying, if you had sought to do it, all 78 councillors," said Mr Allen. "And would there be anything wrong in that?" "No," replied Mr Bailey.
"Providing of course that you didn't offer them little brown bageens," said Mr Allen. "Is it the case that for the entire length of your career as a developer or builder, as and when necessary you have lobbied county councillors or elected local representatives?" he asked. Mr Bailey said he had and he did not think there was anything improper about doing this. He told Mr Allen it would be almost impossible to get any large project off the ground without lobbying local representatives.