Figures on finances not to be trusted - Gogarty

Figures which show a marked improvement in Murphy group finances between 1984 and 1988 could not be trusted because they were prepared by the then group accountant, Mr Gerry Downes, at the behest of the then chief executive, Mr Liam Conroy, tribunal witness Mr James Gogarty claimed yesterday.

Insisting that management accounts for Murphy group companies were "fiddled", Mr Gogarty said mortgages had been taken out on Murphy group lands at the behest of Mr Conroy and used to disguise the real trading position on the company's balance sheets.

Mr Gogarty also insisted that Mr Downes, at Mr Conroy's behest, paid sums totalling £70,000 into companies controlled by Mr Conroy and that these sums purported to represent bills from out-of-house companies for services supplied to JMSE.

Referring to a specific invoice to JMSE from an off-shore company, Pro Eng Ltd, with an address in the Channel Islands, Mr Gogarty said the tribunal should be told who were the directors of that company.

"More of the slush fund," he declared.

Mr Gogarty said the improvement in the company's bank balance was not as a result of chasing debtors, which Mr Murphy was always very anxious about. It transpired that what was happening at that time was that Mr Conroy was mortgaging lands, according to Mr Murphy without his knowledge, to increase the cashflow of the companies instead of chasing debtors.

When Mr Brian Leonard SC, for Mr Downes, insisted that a significant improvement in the company accounts occurred under Mr Downes's stewardship, Mr Gogarty replied: "On the face of it you would nearly give the man a gold medal but then there is something behind the scenes. Accounting is a terrific profession. I missed my calling."

Mr Gogarty also denied a suggestion that there was effectively no costing operation in place for contracts before Mr Downes joined JMSE in 1982, a situation which Mr Leonard said Mr Downes had worked hard to rectify.

Mr Gogarty said he could not agree. "I had the best system and it was the most successful company in the country because of my efforts over many years."

However, Mr Leonard said that in 1988, Mr Gogarty was seeking to have Mr Conroy and Mr Downes investigated as well as some 30 other company employees.

Mr Leonard insisted Mr Downes was an honourable man who had turned around a substantial overdraft on company accounts between 1984 and 1988.

Mr Gogarty retorted: "According to you he was a genius. I don't know why we sacked him."

Mr Leonard replied: "You know full well that Mr Downes was not sacked and that you are being gratuitously offensive to a decent and hardworking man."

Mr Leonard also revealed that Mr Downes was given a financial settlement of £15,000 from JMSE.

Mr Gogarty, having commented that he had "wanted Mr Downes charged", responded that the settlement was "too much".

"Too much. That's what I was annoyed over but then Senior was doing the fiddle behind my back and letting me down then after I getting back his trust [a company trust which controlled much of the Murphy group operations in the Republic], do you know?"