Developer says he does not know about claim

CORK DEVELOPER Owen O'Callaghan has said he does not know why his lobbyist, Frank Dunlop, told the planning tribunal he made corrupt payments to politicians to secure rezoning for the Quarryvale development.

In his final day of direct evidence at the tribunal, Mr O'Callaghan was asked by Judge Gerald Keys if he could think of one reason why Mr Dunlop would come to the tribunal and "destroy his own name, destroy his business, destroy everything he stood for" by saying he bribed councillors if it was not true. Mr O'Callaghan said he could not.

"Would that not lead you to the conclusion . . . it was accurate evidence on his part?" Judge Keys asked.

"It's very hard for me to believe that or accept that," Mr O'Callaghan said.

The tribunal questioned 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. Mr O'Callaghan employed Mr Dunlop to lobby for the Quarryvale rezoning in 1991.

Patricia Dillon SC, for the tribunal, said that since April 2000, Mr Dunlop had said he "wilfully and systematically bribed councillors" to obtain rezoning for land.

She asked Mr O'Callaghan if he was saying Mr Dunlop's evidence was a lie. "I'm not sure it's accurate," Mr O'Callaghan said. He pointed out that politicians did not agree with Mr Dunlop.

Ms Dillon said that in a statement to the tribunal in November 2005, Mr O'Callaghan said he believed Mr Dunlop did bribe councillors.

"I don't know what to believe now," Mr O'Callaghan said.

Ms Dillon said Mr O'Callaghan's business partner, Tom Gilmartin, told the tribunal in early 1998 that Mr Dunlop had bribed politicians.

Mr Dunlop had labelled Mr Gilmartin a buffoon, she said, and Mr O'Callaghan had called him a fantasist, but on the central allegation that Mr Dunlop was bribing councillors "he was right".

She asked Mr O'Callaghan how Mr Gilmartin, who only met Mr Dunlop three times, could know Mr Dunlop had paid bribes if Mr O'Callaghan did not.

"I'd say he was throwing out wild allegations," Mr O'Callaghan said.

The tribunal heard that in October 1998, when Mr Dunlop's name began appearing in the press in connection with payments to politicians, Mr Dunlop made a voluntary disclosure to the Revenue Commissioners.

He asked Mr O'Callaghan for financial assistance. Mr O'Callaghan paid Mr Dunlop a "success fee" of £300,000.

He said he did not ask Mr Dunlop if he had bribed councillors when he handed over the cheque.

"To this day, you have never asked Mr Dunlop what he did with the money?" Ms Dillon asked. Mr O'Callaghan said he did not.

He did not believe Mr Dunlop did anything wrong. The allegations had been made by Mr Gilmartin, "a notorious and outrageous liar", he said.

Ms Dillon said Mr O'Callaghan had made an "extraordinary omission" in not having asked. Not discussing the allegations was "tantamount to ignoring the elephant".

She suggested he did not ask Mr Dunlop about bribing politicians because he already knew.

"I can tell you, I did not know," Mr O'Callaghan said.