Kennedy has now agreed to assist tribunal - co-owner

MAHON TRIBUNAL: Mr Jim Kennedy, the elusive businessman accused of bribing county councillors in return for rezoning votes, has agreed for the first time to co-operate with the tribunal, it was claimed yesterday.

Mr John Caldwell, who along with Mr Kennedy owns Jackson Way, told the tribunal he had persuaded Mr Kennedy to allow the company provide the tribunal with the documents it requires.

Previously, Mr Caldwell claimed Mr Kennedy had blocked his attempts to allow Jackson Way furnish the records sought by the tribunal. Mr Caldwell admitted the two men had been "at loggerheads" over the issue.

Mr Kennedy himself has previously refused to travel from the Isle of Man to give evidence. It is not clear whether he now plans to reconsider this stance.

Mr Caldwell revealed yesterday that Mr Kennedy had given the necessary legal consent in the past few days. He said this came about after Mr Caldwell had warned him of the possible financial consequences of not co-operating.

These instructions would be issued through Pertland, a Liberian-registered company owned by Mr Kennedy.

The tribunal heard yesterday that the land owned by Jackson Way in Carrickmines could be worth as much as €100 million. On top of this, the company is seeking €47 million in compensation from Dún Laoghaire/ Rathdown county council for lands compulsorily acquired for the south-eastern motorway.

The company risks having any proceeds from the sale or development of the land seized if it fails to co-operate with the tribunal and/or is found to have bribed councillors to get Carrickmines rezoned, according to informed sources.

Mr Caldwell told the tribunal he had pressed Mr Kennedy repeatedly to co-operate with the tribunal.

He had used "persuasion, screaming and smiling" to get Mr Kennedy to give his approval for the submission of an affidavit of discovery.

He went on to advise Mr Kennedy that it would be "economic suicide" and "complete stupidity" for Jackson Way not to file the affidavit.

The tribunal already had most of the documents it wanted, he told his business partner.

Mr Caldwell said the matter had caused him "great distress and worry".

Jackson Way had enough problems with the county council and its claim for compensation without having further difficulties with the tribunal, which were "absolutely unnecessary", he had argued.

Initially, Mr Kennedy rebuffed his attempts and said he "wouldn't hear of it".

However, he relented at a further meeting.

Although Jackson Way's lands have an estimated worth of €100 million, Mr Kennedy and Mr Caldwell wouldn't have to pay a penny in personal tax if they sold them, the tribunal also heard.

Mr John Gallagher SC, for the tribunal, said he based his estimate on the price currently being sought for adjoining lands.

Jackson Way's owners believe they would not be liable for tax if the lands were sold because they are domiciled outside Ireland, Mr Caldwell said.

However, he pointed out that 60 acres of the 108 acres owned by the company had not been rezoned for development and might not be as valuable as Mr Gallagher claimed.

In the event of a sale, Jackson Way would have to pay 20 per cent capital gains tax which would leave the company with €80 million net on Mr Gallagher's estimate.

The witness said this would be the end of any tax issues from his perspective.

The situation was "no different" from any other investor who came to invest in Ireland, he explained.

Mr Caldwell's interest in Jackson Way is held for him by Renzenbrinck Investments, an Isle of Man company operated by an adviser, Mr Martin Bullock.

While ownership formally rests with Mr Bullock, Mr Caldwell controls the company.

Mr Caldwell said this arrangement was a "holding option" which meant that he was not liable to capital gains tax and would not be affected by capital acquisitions tax in the event of his death.

It also emerged that Mr Kennedy and Mr Caldwell signed an agreement in 1993 under which they agreed Jackson Way could sell the Carrickmines lands "as soon as reasonably practicable", if they had not been rezoned by July 31st this year and were unlikely to be rezoned within a year of that date.