A brother-in-law of Mr Liam Lawlor has told the Flood tribunal how he secured a £25,000 lease for a Mercedes car on behalf of the West Dublin TD.
But the term loan was increased by £17,500 two years later without his knowledge.
Mr Noel Gilsen said that at the time, in September 1987, Mr Lawlor was "financially embarrassed" and could not obtain credit.
Mr Gilsen obtained the lease from Lombard & Ulster, which was used to purchase a Mercedes 280 SE.
Less than two years later, the amount of the term loan was increased by £17,500 so that a new, more expensive Mercedes could be purchased.
The letter seeking to increase the term loan in February 1989 bore Mr Gilsen's signature and stated he was involved in a building and decorating company and had recently won new contracts with a leading food and meat processing company.
However, Mr Gilsen told the tribunal yesterday he had not signed the letter.
He knew nothing about it at the time.
When he received a letter from the finance company, Mr Gilsen said he rang Mr Lawlor about the matter.
Mr Lawlor explained he wanted to trade in his car and get a new one, the witness said.
Mr Des O'Neill SC, for the tribunal, produced a leasing agreement dated February 15th, 1989, for the purchase of a Mercedes 560. The cash price was £67,836.70.
Mr Gilsen's name appeared as the signatory of this agreement. However, Mr Gilsen said yesterday he had not signed this document and had not authorised anyone else to sign it on his behalf.
Asked what he knew about this car, he replied: "Only that Liam had the car. I knew about the previous loan but not this one."
Mr Gilsen's name was also forged on a direct debit mandate to pay for the car, he told the tribunal.
The mandate listed ER (Economic Reports) Ltd as the account to be debited.
The witness said he had nothing to do with Economic Reports.
Mr Lawlor told the tribunal last week that Economic Reports was registered but never traded.
However, tribunal lawyers said £161,000 was lodged into the company in the late 1980s.
Mr O'Neill asked if the witness had any discussions with Mr Lawlor about the fact that the TD was apparently giving his (Mr Gilsen's) name in connection with a company with which he was associated.
Mr Gilsen said he had not. He told Mr O'Neill he never acted as a nominee for Mr Lawlor in relation to any other transactions, and never bought any property for the TD.
In February 1990 a £25,000 cheque payable to Mr Gilsen was endorsed at the Blanchardstown branch of the Bank of Ireland.
A copy of the cheque was displayed in evidence to the tribunal.
Mr Gilsen said he did not lodge this cheque to his account. He had never seen it before.
The tribunal adjourned until the new year after hearing Mr Gilsen's evidence.
The tribunal will resume for a special sitting on January 11th but full hearings are not scheduled to restart until January 15th.
However, some tribunal lawyers will be involved in the High Court hearing on December 30th and 31st in which the tribunal is seeking to have Mr Lawlor jailed for refusing to answer questions before Mr Justice Flood.
