Witness astounded by Flynn request for donation

MAHON TRIBUNAL: An English property executive has recalled how he was "astounded" when former minister Mr Pádraig Flynn asked him for a donation for "the boys".

Mr Ted Dadley, a former chairman of Arlington Retail Developments, said the welcome for his business plans in Ireland was "terminated" after he refused to make a contribution.

Mr Dadley said he had never been asked for a donation in any other situation in his life. He had to ask who "the boys" were, and Mr Flynn explained he meant Fianna Fáil.

In the late 1980s the UK-based Arlington joined up with Mr Tom Gilmartin to develop a £100 million shopping centre at Bachelor's Walk in Dublin.

Mr Dadley attended a Fianna Fáil fundraiser in a London club in November 1989, at which Mr Flynn and Mr Bertie Ahern were present. But yesterday he said he was under the impression that the event was organised to promote investment in Ireland.

He said Mr Flynn asked him to say a few words at the end of the lunch about the benefits of investing in Ireland, which he did. Afterwards Mr Flynn asked him for the contribution.

Mr Bernard Madden SC, for Mr Flynn, said the witness could hardly have been surprised that his client had asked for a contribution. "You must be joking. I was absolutely astounded," Mr Dadley replied.

He said he told Mr Flynn it was unlikely that Arlington would make any political contribution. It was not company policy to do so.

After consulting a colleague, it was decided not to make a contribution, and Mr Flynn was informed of this, he said. Mr Dadley agreed with Mr Donal O'Donnell SC, for Mr Gilmartin, that he had been unwittingly used to promote a political party, not a country.

Mr O'Donnell asked if Mr Flynn showed any signs of embarrassment about asking for a donation. "I've never seen Mr Flynn embarrassed about anything," the witness replied.

Mr O'Donnell then asked if the warmth of the welcome in Ireland had dimmed after Arlington had refused to make a donation. "'Dimmed' is not the word I would use; I would say 'terminated'," Mr Dadley responded.

In his statement to the tribunal, Mr Dadley had said that, two days after the London fundraiser, an article in The Irish Times revealed the involvement of Arlington in the Bachelor's Walk project. Yesterday he admitted this was incorrect after Mr Conor Maguire SC, for Mr Ahern, pointed out that the article appeared in January 1988, 18 months before the fundraiser.

Mr Maguire said the recollection by the witness was "mistaken and incorrect". He had attempted to link his refusal to make a donation to Fianna Fáil to the appearance a short time after of a newspaper article linking his company to the Bachelor's Walk project.

In response to later questions by Mr Madden, Mr Dadley said: "I'm sorry. I was wrong."

The witness said he met Mr Ahern once or twice. On one occasion, he called in with Mr Gilmartin to Mr Ahern's constituency office. The purpose of the meeting was to see if the minister could offer assistance with the Bachelor's Walk project.

A 1990 Garda report on planning corruption quoted Mr Dadley as saying no offer had been made to Mr Lawlor to act as a consultant and no money had been paid to the TD. Asked about this report, Mr Dadley said it was not true. Mr Lawlor did have a consultancy agreement and was paid over a period of 10 months.