Burke `not believed' by questioners, says his counsel

Mr Ray Burke's lawyers have accused the tribunal of disbelieving everything the former minister says "unless he can show a piece of paper to prove it".

In angry exchanges with tribunal counsel, Mr Aidan Walsh SC, for Mr Burke, accused Mr Justice Flood of unfairness and of telling him to "sit down and shut up".

The dispute arose during testimony from the manager of an AIB branch in London, Mr David Paddock, when Mr Walsh attempted to raise the issue of compensation paid to former clients of the branch.

In 1997, AIB paid £800,000 in compensation to clients of its Bruton Street branch who had complained that former manager Mr Timothy McHale had "interfered" with their accounts. Mr McHale denied the allegations, which were made after he retired.

In the same year, a London judge dismissed the allegations against Mr McHale in a case brought by one of the customers against the bank. Yesterday, Ms Patricia Dillon SC, for the tribunal, said the matter was not relevant to Mr Paddock.

However, Mr Walsh argued the matter showed that recordkeeping at the AIB branch was inaccurate. His client had always maintained he had an account at Bruton Street, counsel pointed out.

Mr Paddock had earlier told the tribunal AIB had found evidence that Mr Burke had an account at Bruton Street for six days in 1983. Last March, he gave evidence to the effect that it was "unlikely" that Mr Burke had an account in the branch. At the time, he said he could not be definitive. Mr McHale also said in evidence that Mr Burke did not have an account in his branch.

However, further searches by AIB revealed that Mr Burke did have an account, which was opened on November 30th in the name of "P.D. Burke", with an address in Alton, Hampshire.

A lodgment of £15,000 was made when the account was opened and £2,000 appears to have been withdrawn on December 2nd.

The account was closed and all monies withdrawn on December 5th.

Mr Burke maintains that the £15,000 in this account came from his account in the Isle of Man, his counsel said.

When Mr Walsh attempted to raise the compensation issue, Ms Dillon interrupted. The chairman intervened in exchanges between counsel, telling Mr Walsh: "Don't shout at me".

Mr Walsh said the chairman was telling him to "sit down and shut up". This wasn't fair. He was questioning the accuracy of records kept by certain people at Bruton Street.

Mr Justice Flood ruled it would be improper to go into the compensation matter at this time.

Mr Paddock also gave details of accounts held in Bruton Street in the name of the builders Brennan and McGowan, and of their respective companies, Kalabraki Ltd and Gasche Investments Ltd.

Ms Dillon said the lodgment of £15,000 could well relate to a transaction involving Mr Burke's account with AIB in the Isle of Man, from which £15,000 had been withdrawn two days previously.

Earlier, Mr Pat Hanratty SC, for the tribunal, asked Mr Tom Brennan if he had found out what happened to the £1.1 million proceeds of a land deal in Donnybrook.

Mr Brennan said he now believed that he and the other four directors of Oak Park Developments each received £110,000 in the Isle of Man. Some of the other money probably went on a tax settlement and to pay consultants.