Differing accounts of land deals between auctioneer and builders

Sharp differences have emerged between the builders Brennan and McGowan and the auctioneer Mr John Finnegan over their knowledge of dealings involving lands linked to payments to former Minister Mr Ray Burke.

Mr Finnegan has told the tribunal that he had no knowledge of a series of contracts purporting to transfer ownership of lands from Canio Ltd to a number of Brennan and McGowan companies. However, Mr Brennan said yesterday that Mr Finnegan had full knowledge of these contracts.

Mr Finnegan held a one-third interest along with Mr Brennan and Mr McGowan in Canio, which paid £60,000 to Mr Burke in 1984 and £15,000 in 1985. After Canio bought the Sandyford lands in April 1979 contracts were drawn up to sell them to Kilnamanagh Estates and Grange Developments, both owned by Brennan and McGowan.

In a statement to the tribunal, Mr Finnegan says he became concerned when he learned about these contracts in 1982. Their effect was that Brennan and McGowan could control Canio without reference to him.

"There was never a bad relationship with John Finnegan and Brennan and McGowan. There was never a dispute between us," Mr Brennan responded. Mr Finnegan alerted his legal adviser in Jersey and travelled there to view the title deeds. Brennan and McGowan's solicitor, Mr George Russell, produced the deeds and stated that Canio's title to the Sandy ford land was unencumbered.

In fact, the title was encumbered and the lands later became the subject of a dispute involving two financial institutions, both of which claimed security on the lands for loans they had given.

Mr Pat Hanratty SC, for the tribunal, said it was quite clear that all the contracts were orchestrated and designed in advance by Brennan and Mc Gowan's accountant, Mr Hugh Owens. They had "no reality" and were never intended to be executed.

Asked what the intention of the contracts was, Mr Brennan said he and Mr McGowan needed land for stock relief. They had used up their available land and needed to acquire more. They had discussed the Kilnamanagh contract with Mr Finnegan and he was "quite happy" with the price. "We all knew what was happening," he said.

Brennan and McGowan used an acquaintance, Mr James Gleeson, to front for them in the purchase of the lands. Mr Brennan explained that vendors would have raised expectations if they knew the two builders were involved.

Their solicitor in Jersey, Mr Laurence Wheeler, paid £630,000 for the property in trust on behalf of the two builders and Mr Finnegan, but ownership was later transferred to Canio when this company was incorporated in the Channel Islands.

Mr Hanratty referred to correspondence between Mr Glees on and Mr Wheeler concerning the transaction. In it, Mr Glee son signed off by suggesting he was looking forward to meeting Mr Wheeler again at the Ascot races. However, Mr Wheeler has told the tribunal that he "didn't know one end of a horse from another", and didn't know Mr Gleeson "from Adam".

Mr Hanratty asked why Mr Owens, Brennan and McGowan's accountant, deemed it necessary "to set up correspondence between two people who never met each other". Mr Brennan said he didn't know. According to Mr Hanratty, it was clear that Mr Finnegan was in on the Sandyford deal from the start. Meanwhile, it has emerged that the tribunal has "extremely serious problems" with the level of compliance by Mr Finnegan with its order to produce financial documentation. Mr Hanratty said he would deal with it on Tuesday, when the matter of Brennan and McGowan's compliance would also arise. It also emerged that Brennan and McGowan and Mr Finnegan were involved in two further property deals in Dublin, bringing to eight the number of transactions on which they collaborated. An Irish company, Capent Ltd, bought a factory site off Northumberland Road, which was let to the Smurfit Group, for about £180,000, and later sold it for £270,000, Mr Brennan said. The three men were also involved in an apartment development on Herbert Street, he added. Criterion Developments Ltd purchased a site from Herbert Properties in 1979 for £40,000.