CAB to challenge Flood order on Redmond

The Flood tribunal is expected to face a challenge from the Criminal Assets Bureau in the High Court this morning, as the bureau seeks a judicial review of an order by Mr Justice Flood that it should hand over papers seized from the former assistant Dublin city and county manager, Mr George Redmond.

In a separate move, the bureau has assessed that Mr Redmond has a tax liability in the order of £500,000 which, with penalties and interest, might be as high as £2 million.

RTE news yesterday claimed the bureau had been conducting an investigation into planning corruption and possible breaches of tax laws and it expected to interview a number of prominent builders in the coming weeks.

The bureau had also been investigating Mr Redmond, whom it arrested at Dublin Airport in February on his return from the Isle of Man. Mr Redmond was carrying almost £300,000 in cash and cheques. Media reports yesterday suggested he may have had as many as 20 secret bank accounts which, over 20 years, may have contained as much as £1 million.

However, the action of the Criminal Assets Bureau effectively means that the State is running two parallel investigations into planning corruption.

Mr Justice Flood, having criticised the bureau last month for its refusal to hand over documents seized from Mr Redmond's house, had summoned the head of the bureau, Chief Supt Fachna Murphy, to appear before him tomorrow.

Sources told The Irish Times yesterday that the announcement of Mr Redmond's tax liabilities was designed to show how effective the bureau could be.

It had argued before Mr Justice Flood last April that only a court could hear and decide on a claim of privilege asserted by it. At that time, Supt Murphy clearly signalled to the tribunal that if Mr Justice Flood did not accept the bureau's point of view, he would seek a judicial review of the tribunal's decision.

Mr Justice Flood, however, said: "The tribunal considers that there is a very serious issue of public interest underlying the approach of the CAB to the inquiry work of this tribunal." He said the bureau's argument went to the root of the ability of the tribunal of inquiry to obtain documentation and information.

Following his arrest and detention at Harcourt Terrace for 12 hours in February by the bureau, there was speculation that Mr Redmond was negotiating a deal with the Flood tribunal, which fell through.

The High Court moves will bring to a head the simmering disagreement between the Criminal Assets Bureau and the Flood tribunal. The bureau is understood to have the support of the Garda Commissioner, Mr Pat Byrne, and the Director of Public Prosecutions, Mr Eamonn Barnes.

However, for his part, Mr Justice Flood has said he will refer the matter to the Oireachtas as part of an interim report.

Mr Redmond was for many years the effective county manager and was known as "J.R." because of his autocratic approach to many councillors. He has said he received £25,000 from the Flood tribunal's key witness, Mr James Gogarty, as a "finder's fee" for introducing Mr Michael Bailey of Bovale Developments to Mr Gogarty.

The tribunal is also expected to hear evidence this morning from journalists and Murphy group bank managers. Following this, the tribunal expects to hear evidence from the developers Mr Michael Bailey and Mr Thomas Bailey and the Murphy family.

The former minister for foreign affairs, Mr Ray Burke, is also expected to give evidence in the current session, although the tribunal is not prepared to say in which order it will take the witnesses.