Offshore payments to Burke were normal, builder says

Offshore payments to Mr Ray Burke were made in a roundabout fashion but they were "absolutely normal", the builder, Mr Joe McGowan, told the tribunal.

Mr McGowan was rejecting claims by tribunal lawyers that the manner in which Mr Burke was paid £60,000 in 1984 and £15,000 in 1985 was secretive and abnormal. The money came from offshore companies controlled by Mr McGowan, Mr Tom Brennan and Mr John Finnegan.

Ms Patricia Dillon SC, for the tribunal, had put it to the witness that there were a number of unusual circumstances around the payments to Mr Burke.

Firstly, the donations were paid out of borrowed money. Secondly, they were not described correctly in correspondence sent from the Irish accountants handling the transactions. Solicitors in Jersey who processed the payment to Mr Burke also described them incorrectly. Also, there was a lack of documentation for the transaction. Finally, the payments were made from the offshore companies of Brennan and McGowan and Mr Finnegan to the offshore company of Mr Burke.

"It was clear that, whatever this payment was, it was not a normal political contribution," Ms Dillon said.

Mr McGowan replied: "That was the way we paid it . . . I suppose you could say it was a roundabout way." But asked if he considered it a normal transaction, he replied: "Absolutely".

Asked why he had approached Mr Finnegan to share in the contribution, Mr McGowan said it was because he knew the auctioneer supported Fianna Fβil.

On why the payment was made from funds held offshore, the witness explained: "That's where the money was at the time."

However, Ms Dillon pointed out that at the time of the £60,000 donation in November 1984 Mr McGowan didn't have any funds in Jersey. It was paid out of an Irish mortgage to buy land at Sandyford. Mr McGowan said he wasn't sure, but he later agreed this was the case.

In addition to donations to Mr Burke, Mr McGowan has made contributions to the Conservative Party in Britain, where he now lives. He said he had donated "small amounts" to the party at a golf classic. He had "been asked to get actively involved, which I'm considering".

Later the tribunal heard that Mr Finnegan had a dual role in the sale of a building on St Stephen's Green, which he owned with Brennan and McGowan. Mr Finnegan acted for the Gallagher Group, which bought No 6/7 in 1980 for £900,000.