Inquiry unable to trace person who got developer's £10,000 cheque

THE TRIBUNAL has been unable to trace the recipient of a £10,000 cheque written by Cork developer Owen O'Callaghan in 1991, the inquiry was told yesterday.

The original cheque and the cheque stub are missing for the September 1991 payment.

The sum was treated in a similar way to another £10,000 payment, to former Fianna Fáil councillor Colm McGrath, made in October 1991.

Counsel for the tribunal Patricia Dillon SC questioned Mr O'Callaghan's bookkeeper, Aidan Lucey, about the cheque.

The £10,000 began as a cash expense paid from Riga Ltd, Mr O'Callaghan's company, to Mr O'Callaghan's own account on September 23rd, 1991. Subsequently, a cheque for the same amount was written from Mr O'Callaghan's account. Ms Dillon said this cheque was not available, and no cheque stub was produced.

Mr Lucey said he was unaware who the final recipient of the £10,000 was. He said Mr O'Callaghan asked him to write a cheque for him to refund expenses. "He often asked for a payment during the course of the year," Mr Lucey said.

The £10,000 was treated as a sundry expense in the Riga Ltd accounts, the tribunal heard. Riga's outgoings were repaid from Barkhill Ltd, a company owned by Luton-based developer Tom Gilmartin, who was the originator of the Quarryvale development and then a partner to Mr O'Callaghan. Ms Dillon said Mr O'Callaghan had also told the tribunal that he did not know the identity of the individual to whom the £10,000 cheque was paid.

"If Mr O'Callaghan wanted to pay an expense out of Riga, could he have done that without lodging this payment to his bank account?" Ms Dillon asked.

"He could have asked me for a cheque made out to whoever he wanted to," Mr Lucey responded.

Ms Dillon pointed out that on a document written by Mr O'Callaghan to AIB outlining expenses incurred in connection with Quarryvale, he noted the £10,000 expense and wrote: "I will explain on Friday."

This comment was also written for the £10,000 expense which Ms Dillon said was ultimately paid to Mr McGrath on October 11th, 1991.

Ms Dillon also drew attention to a document sent by Deloitte & Touche to Mr Lucey and Mr O'Callaghan listing transactions for which they required back-up documentation. These included three payments totalling £80,000 made in May and June 1991 to Shefran Ltd, a company owned by Frank Dunlop. A handwritten note beside the three payments stated, "no invoices June election". Mr Lucey agreed the handwriting looked like Mr O'Callaghan's.