Developer refused to pay Lawlor cash

CORK DEVELOPER Owen O'Callaghan has said the late Liam Lawlor refused to accept a cheque written out to his own name.

Mr O'Callaghan told the Mahon tribunal he refused to give the Fianna Fáil TD cash and argued with him for 12 months or more before agreeing to pay him with a cheque written to cash.

He said he was afraid of the effect it might have on his business if he did not comply with Mr Lawlor's request.

The planning tribunal is questioning Mr O'Callaghan as part of the Quarryvale II module, an investigation into allegations of corruption surrounding the rezoning of land on which the Liffey Valley shopping centre is built.

The tribunal heard Mr O'Callaghan gave Mr Lawlor two payments, one of £10,000 in September 1994 and one of £20,000 in 1995, for work he carried out to support the Quarryvale development, including putting Mr O'Callaghan in contact with local community groups. Both cheques were made out to cash.

Mr O'Callaghan said he was surprised to be asked for a cheque for cash and refused to make it out, but finally agreed.

"I was asked so many times for it, I eventually gave it to him," Mr O'Callaghan said.

He said he assumed Mr Lawlor was trying to avoid tax. He did not discuss the matter with lobbyist Frank Dunlop and did not consider approaching then taoiseach Albert Reynolds about it.

"It didn't cross my mind, I'm afraid," Mr O'Callaghan said.

Judge Gerald Keys asked Mr O'Callaghan if he was afraid of the consequences to his project if he did not comply with the way in which Mr Lawlor wanted to be paid. Mr O'Callaghan said he was.

"My understanding is that Mr Lawlor was in a very strong position in a sense from a political point of view and could influence people," the judge said.

"So I take it, then, you found it very difficult not to meet, or a least meet him half way . . . ?"

"Yes," Mr O'Callaghan said.

He also told the tribunal yesterday that allegations by Luton-based developer Tom Gilmartin that he paid Mr Reynolds £150,000 were "absolute rubbish and fantasy".

He said Mr Gilmartin, his partner in the Quarryvale development, had a "peculiar mind".

"If you mention something to him he goes off on a fantasy trail and he comes up with a terrific story," he said.

Counsel for the tribunal Patricia Dillon SC said Mr Gilmartin told the tribunal that Mr O'Callaghan said he paid Mr Reynolds £150,000 to interfere in the IDA and get them to purchase land near Quarryvale which Mr Gilmartin had wanted to buy.

"He said he'd been told you were involved with others in the IDA jumping on the site across the road . . . " Ms Dillon said.

"Absolute rubbish, fantasy," Mr O'Callaghan replied.

He said he did contact the IDA because he wanted their support to promote industrial units, included in the Quarryvale development.

He had explained that to Mr Gilmartin, he said. He also agreed he did not believe Mr Gilmartin was fit to negotiate with councillors or investors.

"It would be like running a donkey in the Grand National," he said.