Journalist tells of `spin' on Burke

Mr P.J. Mara, the Fianna Fail director of elections in 1997, also represented Mr Michael Bailey of Bovale Developments and "was concerned" to tell journalist Frank Connolly that if there was a payment to Mr Ray Burke it was a political donation and there had "been no wrongdoing on Mr Burke's part", Mr Connolly told the tribunal.

Outlining how he came to write a series of articles based on the allegations of Mr James Gogarty, Mr Connolly said Mr Mara imparted this view to him a few days before the general election in June 1997. Mr Connolly formed the impression that "this was a development of what you, one could call it a spin, but certainly the explanation or the background of this controversy ". Around this time an article appeared in the Sunday Tribune which suggested that Mr Michael Bailey had paid £30,000 to Mr Ray Burke and there were no other payments involved.

Mr Bailey told Mr Connolly that he felt he was being "shafted" by Fianna Fail, Mr Connolly recalled. "Mr Bailey said he was very angry that things were being spread about him. He denied he had paid £30,000 to Mr Burke, as alleged in the Sunday Tribune article. He said there were people in Fianna Fail who were setting him up," said Mr Connolly.

Mr Connolly added that he felt some sympathy for Mr Bailey "because I think he genuinely felt that he was being wronged. . ."

He said the first time he met Mr James Gogarty was at the offices of Mr Gogarty's then solicitors, Donnelly Neary and Donnelly, in Newry, at the end of March 1996. He had subsequently had a more detailed meeting at Mr Gogarty's home, in early April of that year, in which he taped the allegations against the Murphy group.

Mr Connolly said he had some difficulty with Mr Gogarty as Mr Gogarty was concerned to advance his claims of intimidation and fraud against the Murphy group. Mr Connolly acknowledged that he was concerned to get to the story of political corruption. Mr Connolly also said that the Sunday Business Post was concerned about the possibility of a serious action for libel arising out of its coverage of the payment to Mr Burke.

Because of this the newspaper decided not to publish an article based on the content of the "famous letter" of June 1989 in which Mr Michael Bailey said planning permission could be procured with the aid of Ray Burke.

"We didn't publish that because Mr Gogarty didn't give me a copy - an actual hard copy, or indeed fax me a copy of the letter."

Mr Connolly revealed he had spoken to the former assistant city and county manager, Mr George Redmond, and asked him if he had received any payments from JMSE. Mr Redmond denied this.

As part of his investigations he also contacted JMSE and visited the company offices at Santry. He had met with Frank Reynolds in, he thought, the boardroom of the company offices. Mr Reynolds told him that Mr Gogarty had received a generous pension settlement but was still not satisfied with his lot.