Gilmartin claims O'Callaghan blackmailed him

Mr Tom Gilmartin has accused Cork property developer Mr Owen O'Callaghan of blackmailing him and holding him to ransom over the sale of a site in west Dublin.

The Mahon tribunal has heard that the two men agreed in 1988 that Mr Gilmartin would buy Mr O'Callaghan's land at Neilstown in west Dublin for £3.5 million.

The 33-acre site at Neilstown had been earmarked for a shopping centre by the Cork businessman. Mr Gilmartin wanted to build a massive retail and industrial complex at the adjoining site at Quarryvale, but could not secure zoning as Mr O'Callaghan's land had already been zoned for the same purpose.

Mr Gilmartin said he had convinced Mr O'Callaghan to sell him the Neilstown lands for £3.5 million, thus allowing him to apply for rezoning and planning permission for his own project. The money was to be paid in three installments: £800,000 initially, £1.35 million a year later and the final £1.35 million in January 1990.

But Mr Gilmartin claimed today that by the time it came for him to make the final payment, Mr O'Callaghan was actively trying to thwart his plans. He accused him of having lobbyist Mr Frank Dunlop, Mr Liam Lawlor and a "cartel" of Dublin county councillors "on the payroll" to ensure the Quarryvale site was not zoned.

"I was being blackmailed by him," Mr Gilmartin said. "They were holding me to ransom every time the zoning came up" at Dublin County Council.

He refused to pay the final installment, claiming the Cork businessman was "totally in breach" of their agreement because he had applied for planning permission for his site at Neilstown in October, 1989. This was an attempt to "confuse the issue" and if successful, would effectively scupper any chance of the Quarryvale lands being zoned, Mr Gilmartin said.

Mr O'Callaghan did this solely to pressurise him as he had "no intention" of building his shopping centre, Mr Gilmartin claimed.

"How do you know that?" asked Mr Paul Sreenan, SC for Mr O'Callaghan. "Because he told me himself," Mr Gilmartin answered.

Mr Sreenan asked if Mr Gilmartin only agreed to buy the Neilstown site because he thought he could transfer the zoning to his own land. "No, I wouldn't be that stupid," Mr Gilmartin answered. "I did not believe I could transfer the zoning."

Mr Gilmartin said throughout the whole affair, Mr O'Callaghan had not invested a penny of his own money in Neilstown, despite being heavily involved. Mr Gilmartin said he was known in the property business as "the cuckoo" as he was notorious for "taking over other people's nests".

He also denied a suggestion by Mr Sreenan that his claims about Mr O'Callaghan were motivated by begrudgery, bitterness and jealousy at his rival's financial success.

"You're joking," Mr Gilmartin said. "Anyone who knows me will tell you I've never been motivated by money.  Some of the best things I've ever done in my life, I didn't make any money on."

Mr Gilmartin also insisted he did not ask the tribunal for immunity in exchange for testifying. He said that when freedom from prosecution was offered to him, he declined, saying he didn't need it. "I've never had a dishonest penny in my life."

Mr Bernard Madden, BL for Mr Padraig Flynn, began his cross-examination of Mr Gilmartin this afternoon. The questioning will resume tomorrow morning.