The circumstances surrounding the setting up of a bank account in the Isle of Man by Mr Michael Lowry in 1996 indicated that he was intent on keeping the account secret, the Moriarty tribunal heard this morning.
|
|
Mr Michael Lowry
|
The contract for the Irish Nationwide account listed the address of Mr Lowry’s accountant in Blackrock, Co Dublin without their consent. He also listed his occupation as a company director when, in fact, he was a Government minister at the time.
And Mr Lowry had written on the contract that there should be no correspondence in relation to the contract without his request.
The account was set up with a controversial loan of £147,000 by then Fine Gael fundraiser, the late Mr David Austin.
Counsel for the tribunal, Mr Jerry Healy SC, told the inquiry that there was "no possible, credible reason for David Austin to put money in the offshore account for any other reason other than to keep it secret".
Mr Lowry denied this and said he could not answer for the late Mr David Austin who had given him a loan of £147,000 to buy a house in Blackrock, Co Dublin.
The house at 43 Carysfort Avenue was acquired in 1996 by the builder Mr Michael Holly, who gave Mr Lowry first option on it. Mr Lowry, then a minister, had been looking for "appropriate residential accommodation" in Dublin.
Mr Lowry borrowed the money to purchase the house from Irish Nationwide. It was estimated that a total of £147,000 would also be needed to renovate it and Mr Lowry intended to provide these funds himself. Despite the fact that he had £140,000 in an account in the Channel Islands, he borrowed the money from Mr Austin.
During cross-examination of Mr Lowry this morning, counsel for the tribunal was interrupted by Mr Domhnaill O'Donnell SC, acting for Mr Lowry, who said that his client’s tax affairs were not within the remit of the tribunal and that his client was "under caution" from the Revenue Commissioners.
Justice Moriarty agreed with Mr O’Donnell but said that the time at which the account was set up was of interest to the tribunal.
Mr O’Donnell asked that the matter should be treated with "great sensitivity" because of the presence of revenue inspectors at the tribunal today.
In earlier evidence, Mr Healy expressed his surprise at Mr Lowry's assertion that he had not "confided" in Mr Austin in relation to the McCracken Tribunal's investigation of the former Fine Gael TD's financial affairs.
Mr Healy said that a business associate of Mr Denis O'Brien, then chairman of Esat Telecom, had raised Mr Austin from his sick bed to sign a letter that specifically stated Mr Lowry had nothing to do with the controversial payment of $50,000 by Telenor through Mr Austin to Fine Gael.
Mr Healy said that Mr Lowry must have been aware the contribution was causing concern to the board of Esat Telecom and its business partner Telenor, who were in the final stages of a public floatation.
Mr Lowry agreed he was aware of the problem but said that evidence from then party leader Mr John Bruton and then party general secreatry Mr Jim Miley had already stated that he (Mr Lowry) was not involved in the payment.
"I had no role in seeking it, sourcing it or rerouting it, or whatever, back to Fine Gael," he said.
The tribunal continues this afternoon.