Fox denies knowing of cash transfer

Accountant Mr Noel Fox has denied any knowledge of a £10,000 cash payment made by his friend Mr Denis Mahony to the lobbyist…

Accountant Mr Noel Fox has denied any knowledge of a £10,000 cash payment made by his friend Mr Denis Mahony to the lobbyist Mr Frank Dunlop.

Mr Fox and Mr Mahony engaged the services of Mr Dunlop in March 1993 when they were seeking the rezoning of their adjoining properties in Drumnigh, near Portmarnock in north county Dublin. The two landowners deny Mr Dunlop's claim that they were aware that he would use the money to bribe councillors.

Yesterday, Mr Fox told the tribunal he had no recollection of Mr Dunlop seeking cash when the three men held a 40-minute meeting in the Shelbourne Hotel. He said the lobbyist had requested a professional fee and he, Mr Fox, expected that an invoice would follow. He didn't recall the amount sought.

Mr Fox said he didn't take any active part in the meeting. He never discussed the payment of cash to Mr Dunlop with either Mr Mahony or Mr Dunlop. If cash had been paid, he would have expected that a receipt would be issued and VAT paid. He would have "demurred" if cash had been asked for.

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Mr Dunlop has alleged that the two landowners "knew the way the world worked" and were therefore aware he would pay money to councillors. However, Mr Fox said "no such mantra" was used at their meeting.

Mr Mahony actually paid over the money at a second meeting with Mr Dunlop in the same month, which Mr Fox did not attend.

In April 1993, Dublin County Council rezoned Mr Mahony's land for low-density housing. However, Mr Fox's land was withdrawn from the rezoning motion at the last minute.

Asked why this happened, Mr Fox cited commercial reasons. The planned rezoning was "a forlorn hope". Because the land was in the flight path of Dublin airport, any rezoning would have been for low-density housing and this would not have been viable.

He said he decided to withdraw before any money was paid to Mr Dunlop.

Judge Mary Faherty said there was little cost for Mr Fox in the rezoning application. He had even said in a statement that there was "little to be lost" in making an application. So why didn't he leave his lands in the rezoning motion? Mr Fox said his family was living on the property and were very happy there.

Judge Faherty asked if the witness was concerned about the adverse publicity about rezoning appearing in the newspapers in 1993. Had this influenced him? Mr Fox said the commercial aspect had decided the matter. It was "basic common sense".

Mr Mahony paid Mr Dunlop a further £2,000 "success fee" in February, but the witness said he knew nothing about this payment. Mr Mahony's diary shows that he met Mr Fox separately on the day Mr Dunlop requested the payment, and on the day the money was handed over. However, Mr Fox said his friend never mentioned the matter to him. He didn't find it strange that Mr Mahony had not mentioned it.

Judge Gerald Keys pointed out that even though Mr Fox had withdrawn his lands, Mr Dunlop had done some work for him. He was, therefore, due some fees. It was "strange" that this hadn't occurred to Mr Fox.

However, Mr Fox disagreed. It hadn't crossed his mind. Mr Dunlop hadn't sent a bill.

Ms Sheila Terry told the tribunal she didn't know Mr Dunlop had paid any money to councillors to influence their votes when she was a PD councillor in the 1990s. Neither had she known that he could rely on the votes of other councillors. At the time, she wasn't aware of his influence.

Ms Terry, now in Fine Gael, described herself as pro-development. She said she was lobbied by Mr Mahony for the rezoning of his land in April 1993. She voted for this rezoning later that month, although she also supported a motion to delete Mr Fox's land from the rezoning motion.

A former PD press officer, Mr Stephen O'Byrnes, told the tribunal he met Mr Mahony in March 1993.

Mr Mahony was inquiring into the attitude of the party's councillors to the rezoning motion for Drumnigh. He told Mr Mahony that the party would generally follow the recommendation of council officials.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.