THE SUPPORTING CAST: BEN DUNNE:€2m given by Dunne to ex-taoiseach led to cut in family trust's massive tax bill, tribunal found, writes COLM KEENA
THE BUSINESSMAN Ben Dunne (62) was the subject of perhaps the most damning finding of the first report of Mr Justice Michael Moriarty, published in December 2006.
In that report the tribunal chairman directly linked the making of payments by Dunne to the former taoiseach, the late Charles Haughey, to interventions by Haughey with the Revenue Commissioners that directly led to a massive tax bill for the Dunne family trust being reduced.
With the family trust facing a significant tax bill, Haughey asked the then head of the Revenue, the late Séamus Paircéir, to meet Dunne, and the two men entered into negotiations during which Paircéir offered to settle a £38.8 million tax bill for £16 million.
Although the settlement offer was not actually taken up by Dunne, Mr Justice Moriarty, found the offer was a real and tangible benefit for him, in that it provided him with an option that had not previously been available.
The first tribunal report found that Dunne, when the head of one of the largest, if not the largest, indigenous businesses in the State, had made payments of more than €2 million to Haughey, the bulk of them while the latter held the office of taoiseach.
The 1997 McCracken (Dunnes payments) tribunal had reported on payments by Dunne to Haughey, but had not been told about Haughey’s dealings with Paircéir. Haughey was no longer dealing with the Moriarty tribunal, for health reasons, when it began investigating the matter. When called to give evidence, Paircéir said he had not felt he was obliged to inform the McCracken tribunal about the request from Haughey that he deal with Dunne, or the subsequent negotiations he had with Dunne. Dunne, said he had forgotten about the meetings with Paircéir until they were discovered by the Moriarty tribunal. In October 1981 Dunne was dragged from his car and held captive by the IRA for six days, before a ransom was reportedly paid. He was apparently fearful of being kidnapped again when he had a cocaine-induced episode in a Florida hotel in May 1992 that led to his being arrested.
This in turn led to him being removed from the helm of the Dunnes Stores group, a position he’d held since he took over from his father, Ben snr, who had established the business.
During preparations for a court clash with his siblings, Dunne set out in legal documents payments he’d made, using Dunne Stores’ and Dunne family trust money, to both Haughey and former Fine Gael minister Michael Lowry.
The legal case was settled, but in 1996 Sam Smyth in the Irish Independent, revealed the fact of payments to Lowry. In time it emerged that Haughey had also received money. The McCracken tribunal was established to look at payments from Dunnes Stores, and then the Moriarty tribunal to look at all payments to Haughey and Lowry.
Since leaving his position as head of Dunnes Stores, Dunne has received treatment for his cocaine addiction and has set up a chain of fitness centres. He took exception to the first Moriarty report, saying he had forgotten about payments to Haughey not disclosed to the McCracken tribunal, evidence not accepted by Mr Justice Moriarty.
KEY FINDINGS: WHAT REPORT SAYS
Action contemplated and attempted by Ben Dunne (along with Michael Lowry) in relation to a property at Marlborough Street, Dublin, was “profoundly corrupt to a degree that was nothing short of breathtaking”.
Michael Lowry sought to influence a doubling of the rent payable by Telecom Éireann to Ben Dunne for renting the property, and this was done at Mr Dunne’s behest.
Mr Dunne “remained an astute businessman who was fully aware of what he was doing”, in spite of medical reports that his recollection and capacity had been adversely affected by his kidnapping and other experiences.