Builders unaware of secret tapes in tribunal files

Builders Tom Brennan and Joe McGowan consented to their former solicitors releasing files to the tribunal, not knowing they contained secret tapes of their conversations and photocopies of a personal diary.

Transcripts of the tapes appear to link the former Fianna Fail minister, Mr Ray Burke, to a land deal involving an offshore company, Canio Ltd, in Sandyford, Co Dublin. In 1984, Canio, which was owned by Brennan and McGowan and auctioneer Mr John Finnegan, made a payment of £60,000 to Mr Burke.

In the following year, Brennan and McGowan became embroiled in litigation with their solicitor, Mr George Russell, over the land, and Mr Russell's son Phillip started recording his father's conversations with the two builders using a dictaphone.

Mr Martin Hayden SC, for Brennan and McGowan, asked Mr Phillip Russell whether his father was still acting for the two builders at this stage. Mr Russell said Brennan and McGowan were still coming into his father's office, but he wasn't sure. The witness said he was trying to "sort out the mess" for his father.

He told counsel he did not tell Brennan and McGowan that their meetings were being taped. His father knew, and authorised, the taping.

Mr Hayden asked at what stage the witness decided to obtain the diaries of Brennan and McGowan for photocopying.

Mr Russell replied that one of the two men left a diary on a desk in his father's office one day and he photocopied the contents but did not tell Brennan and McGowan.

Mr Hayden said the tribunal should disregard or extract from the record all references to the contents of the conversations or the diary. Litigation arose after the Canio lands were used to obtain two separate mortgages. Mr Russell said his father had made an error but this was at the instigation of his clients.

Asked by Mr Hayden whether his father had professional indemnity insurance, the witness said the level of this indemnity was "so small as to be useless".

Mr Hayden pointed out that Brennan and McGowan had paid Mr Russell's legal costs of £125,000 in the resulting litigation. Earlier, Mr Simon Howard, a lawyer with Bedell and Cristin in Jersey, completed his evidence. The firm acted for Brennan and McGowan and Mr Burke.

Mr Howard was asked about a note hand-written by his colleague, Mr Lawrence Wheeler, suggesting that of the £60,000 paid to Mr Burke, £25,000 each came from Mr Brennan and Mr McGowan, and £10,000 came from Mr Finnegan.

He agreed with Mr Dominic Hussey SC, for Mr Finnegan, that there was nothing to suggest that Mr Wheeler had told Mr Finnegan's trustee of the money paid to Mr Burke.