Former Fianna Fáil TD, Mr Liam Lawlor, has denied laundering money in the Czech Republic by using a false invoice to receive an under-the-counter payment from an Irish land deal.
Mr Lawlor effectively stole a blank invoice from his solicitors in Prague, filled it in for £117,500 stg and arranged for this money to be transferred to a client account with these solicitors, the chairman, Judge Alan Mahon, suggested yesterday.
Mr Des O'Neill SC, for the tribunal, claimed a loan agreement between Mr Lawlor and an Irish property company, Lunar Sea Developments, was a "vehicle" used by the politician to launder funds he had received in London and had moved to the Czech Republic.
However, Mr Lawlor insisted he never laundered "a penny" in his life. Accusing the tribunal of "headline-seeking", he said Mr O'Neill was "here to ask questions, not to make suppositions".
But Judge Mahon responded: "If someone takes £100,000 cash payment under the table and puts it through a series of hoops and bank accounts using false invoices and brings it back into the country, that is laundering." Mr Lawlor said his idea of laundering was not declaring money to the authorities, and he had declared this money.
Judge Mahon said it "looked" very different.
"That's a choice you can make in your report," said Mr Lawlor.
The transaction under examination stems from the sale of one acre of his land in Lucan to Maplewood Homes two years ago. As part of this deal, Mr Lawlor received £100,000 stg (£117,500 including VAT) under the counter in London, which was paid by an associate company Lunar Sea Developments.
After tribunal lawyers discovered an invoice for this transaction issued on the headed notepaper of Seddons, Mr Lawlor's solicitors in Prague, they demanded more information. Under pressure from the tribunal, Mr Lawlor last week gave his consent for Seddons to answer the tribunal's questions.
Yesterday, Mr O'Neill said Seddons had denied issuing the invoice or doing any work for Lunar Sea. The firm confirmed Mr Lawlor as the beneficiary of the money in its client account.
Mr Lawlor said he had spoken to the principal, Mr Tony Seddon, on Monday and explained that he had originally intended issuing the money in respect of his Czech company Zatecka 14, but this had not been acceptable to Maplewood Homes.
Judge Mahon asked whether the witness was expecting the tribunal to believe that Mr Seddon expressed no amazement or anger at Mr Lawlor's use of a blank company invoice. "It puzzles me that Mr Seddon should take such a laid-back view." Mr Lawlor said Mr Seddon understood what had happened. He wasn't satisfied but the discussion had moved on.
Mr Lawlor said he may have obtained the blank invoice in the Prague office, which he had "the full run of" for 12 years.
Mr O'Neill said that if Mr Lawlor had used Zatecka to generate the invoice, as he said he had intended to do, this also would have been a false invoice.
Mr Lawlor denied this, saying Zatecka could have engaged in co-operation with Maplewood Homes on property ventures in the future. There was tremendous potential in the Czech Republic for such projects.
Although Mr Lawlor is entitled to 75 per cent of the profits from Zatecka, he claims not to have any beneficial ownership of the company. Yesterday, he said his only connection was as a consultant.
But Mr O'Neill said the company was a vehicle Mr Lawlor used to receive money from others. He read from a loan agreement between Mr Lawlor and Zatecka, which purported to show that the £117,500 was to be repaid by the politician by the end of 2006.
Counsel said this document laid a false money trail. It was an invention that was never signed. It was the vehicle used to launder money received in London.
"You're wholly, totally, absolutely wrong," Mr Lawlor replied. "You can build your theories and queries about laundering but you're wrong." Mr O'Neill said this was only one of a series of loan agreements Mr Lawlor had with Zatecka. He listed other agreements, for: IR £2,500, £37,107 stg; DM 220,276; Czech Crowns 750,000; £2,000 stg; and £2,000 stg.
