Gardai not told about claim that councillor demanded #100,000

Property developer Mr Owen O'Callaghan says he didn't tell the gardaí about a claim that a Fianna Fáil councillor sought £100,000 from Mr Tom Gilmartin because he didn't fully believe it.

Mr O'Callaghan told the tribunal he didn't pass on Mr Gilmartin's allegation to a Garda investigation in 1989 because he was concerned he would be spreading "scandal and rumour".

Mr Gilmartin has alleged the councillor, Mr Finbarr Hanrahan, demanded the sum in 1989 in return for his support for the developer's plan to build a shopping centre at Quarryvale in west Dublin. Mr Hanrahan denies the claim.

Mr O'Callaghan has told the tribunal Mr Gilmartin told him about the alleged demand immediately after a meeting with Cllr Hanrahan, which took place in Buswells Hotel.

Yesterday, he was asked if he told the gardaí about Mr Gilmartin's allegation when interviewed during their investigation.

He said he didn't. "I didn't believe the story. I wasn't 100 per cent sure it was correct. I couldn't take the risk of spreading scandal." Asked why he didn't check with Cllr Hanrahan whether there was any truth in the allegation, he said the politician was a "bare acquaintance" of his. He "wouldn't dare" go and ask him such a question.

Just before the Buswells meeting, he had had two lengthy meetings with Mr Gilmartin, Mr O'Callaghan explained. In these, Mr Gilmartin seemed to be exaggerating and boasting. This left doubts in his mind, Mr O'Callaghan said. Asked why he hadn't told the gardaí about this trait, he referred to the fact that Mr Gilmartin had not made a statement to them. If Mr Gilmartin had done this, he would have seriously reconsidered his position and would have told the gardaí that Mr Gilmartin exaggerated.

Mr O'Callaghan said he had no knowledge of corruption in the planning system in Dublin in the late 1980s and 1990. At this time, he had very little to do with planning in Dublin, he said. He met only one politician, Cllr Paddy Hickey, when trying to develop a centre at Cooldrinagh.

Later, when he was trying to develop a town centre at Balgaddy, he didn't have to deal with politicians because it already had the right zoning. Asked if he had been told about demands for money by politicians during this period, he said he hadn't.

Mr John Gallagher SC, for the tribunal, asked the witness if Mr Gilmartin had told him about his allegations that an unidentified man had demanded £5 million from him after a meeting in Leinster House in 1989.

Mr O'Callaghan said he was "completely amazed" at this allegation. He knew Mr Gilmartin well in the period 1988-1996 and yet he had to read about this allegation in the newspapers.

Neither had Mr Gilmartin alleged to him that Mr Lawlor was demanding £100,000, or that money was being sought for George Redmond, he said. However, he had "continually cribbed" about Mr Lawlor and Redmond. Mr O'Callaghan said he hardly knew Mr Pádraig Flynn and would be slow to contact him.