Finnegan 'shocked' at Burke payment

Auctioneer Mr John Finnegan has spoken of his "great shock" on learning that a company in which he was involved had paid money to former minister Mr Ray Burke.

Mr Finnegan also said he was shocked to learn that the builders Mr Tom Brennan and Mr Joe McGowan had paid money to Mr Burke. He said the two had never discussed with him their intention to pay money to the politician.

The tribunal has established that Mr Brennan paid Mr Burke £50,000 in 1982. Canio, a company jointly owned by Mr Finnegan and the Brennan and McGowan firm, made payments of £60,000 and £15,000 to the politician in 1984 and 1985. However, Mr Finnegan says he knew nothing about the payments made by Canio, in which he held a one-third share.

Yesterday, Mr Finnegan said that when news first broke of the payment by Brennan and McGowan, he had said to himself, "Thank goodness I'm not involved." But he got a "great shock" when he learned the payments came from Canio.

Mr Pat Hanratty SC, for the tribunal, asked the witness if he had ever been approached for a donation to Fianna Fβil by businessman Mr Ernest Ottewell. Mr McGowan has told the tribunal that Mr Ottewell co-ordinated fund-raising efforts for Fianna Fβil and Mr Burke in the 1970s and 1980s.

Mr Finnegan said he had heard of Mr Ottewell but had never been approached by him.

Counsel also asked if the witness knew anything about a payment of £35,000 to Mr Burke in 1984. Mr Burke originally attributed this to Brennan and McGowan's fund-raising efforts but he now says the sum was a relodgement of an earlier withdrawal and did not come from the builders.

Mr Finnegan said he knew nothing about this payment.

Earlier, the tribunal heard that Brennan and McGowan "went behind the back" of their business partner, Mr Finnegan, in attempting to sell land owned by the three men.

Mr Finnegan said he was "taken aback" when he learned of the two builders' attempts to transfer part of lands owned by the three men to companies under the sole control of Brennan and McGowan.

"I was very upset, as you wouldn't know what effect selling part of the holding would have on the rest," he said.

The three men invested £660,000 in about 100 acres at Sandyford, in south County Dublin, in 1979. The property was purchased through Canio.

However, some time later, Mr Finnegan learned that Brennan and McGowan intended to transfer ownership of much of this land to their own companies, including Kilnamanagh Estates.

He said he was "gravely concerned" and shocked at this development.

He raised the matter with Mr Joe McGowan, who told him it was only a temporary measure designed to obtain stock relief. Mr Finnegan said he had never heard that this was possible.

The tribunal resumes on Tuesday.