Burke mistaken over source of payments, tribunal hears

Former Fianna Fáil minister Mr Ray Burke was mistaken in his evidence to the Flood tribunal in relation to the source of payments made to him by builders McGowan and Brennan, according Mr Joseph McGowan.

It would appear from Mr Burke’s evidence he believed these payments came from fundraising activities Ms Patricia Dillon SC

In his evidence to the tribunal today, Mr McGowan said Mr Burke had been wrong in attributing large payments he received to fundraising events.

Mr McGowan said the payments had instead come directly from himself and his business partner, Mr Brennan and were independent of fundraising done on behalf of Mr Burke.

The tribunal has discovered the two men used a network of off-shore companies to make payments totalling £125,000 to Mr Burke.

Counsel for the tribunal Ms Patricia Dillon SC put it to Mr McGowan that "it would appear from Mr Burke’s evidence he believed these payments came from fundraising activities carried out on his behalf by yourself and a Mr Ernst Ottiwell."

Mr McGowan said Mr Burke was "wrong". "He may have thought that but he was mistaken".

In his original evidence to the tribunal Mr McGowan had said the money received by Mr Burke came from lavish fundraising events held at horse racing meetings in Britain and Ireland.

However yesterday Mr McGowan apologised to the tribunal for failing to identify the correct source of the money.

Ms Dillon said she found it "extraordinary" that Mr Burke originally had the same story as Mr McGowan.

Mr McGowan said he could not explain that.

In increasingly heated exchanges, Ms Dillon asked Mr McGowan: "Why would Mr Burke think the money had come from fundraising events?" Mr McGowan said he did not know and that he could not answer for Mr Burke.

Ms Dillon asked Mr McGowan had Mr Burke been misled over the source of the money. Mr McGowan said: "There may have been a misunderstanding".

Mr McGowan said there were a number of fundraising events from which a sum of about £120,000 was raised on behalf of Mr Burke/Fianna Fáil but this was separate from the orginal £125,000. The tribunal has yet to ascertain where did these funds went.

Mr McGowan claims the money from these fundraisers was channeled to Mr Burke through Mr Ottiwell, a Fianna Fáil fundraiser who is now deceased.

However Fianna Fáil has told the tribunal that Mr Ottiwell had no connection with the party and that it has no records of funds or subscriptions ever being raised by Mr Ottiwell. Mr McGowan said he found this hard to believe.

In a letter to the tribunal Fianna Fáil suggested the tribunal should re-direct its enquiries to Mr Burke.

The tribunal resumes tomorrow.