Mahon revisits 'blackmail' claims against Lawlor

Former Fianna Fáil TD Mr Liam Lawlor has returned to the Mahon tribunal to face questioning over his alleged blackmailing of his former solicitor.

Solicitor Mr John Caldwell has claimed to the tribunal Mr Lawlor "blackmailed" him into paying £685,000 in proceeds from land deals.

Mr Caldwell alleged his former business partner did so by threatening to report the solicitor to the Incorporated Law Society if he did not pay the money, according to Mr Des O'Neill SC, for the tribunal.This money came from two land deals in which they were involved - in Coolamber, Lucan, and Baldoyle, both in Co Dublin.

The tribunal this morning revisited written evidence by Mr Caldwell's legal adviser in Jersey, Mr Nicholas Morgan, on the transfer of the funds to Mr Lawlor. It notes that Mr Caldwell agreed to the payments "to avoid publicity" in the face of "unlawful demands or blackmail" from Mr Lawlor.

The tribunal has previously heard that this money was paid to Mr Lawlor under the guise of a loan through a Bahamian-registered trust called Long Water Investments.

Mr Lawlor today admitted there was no written evidence of the loan and said he intended to request documentation from Mr Caldwell to prove his claim. He would also be seeking assurances from the solicitor that he was withdrawing his threat to attempt to recoup the money.

If, asked Judge Gerald Keys, it is proved that this money was income rather than a loan, are you not concerned that the Revenue Commissioners will be investigating you? "I think the Revenue Commissioners are well able to deal with the matter," Mr Lawlor answered, to laughter from the packed public gallery.

Mr Lawlor also repeated his objection to the use of the term blackmail by the tribunal in reference to his dealings with his former solicitor.

He claimed Mr Caldwell was "in breach of his fiduiciary duties" and that to describe threatening to report him to the Incorporated Law Society for professional misconduct as blackmail was "stretching credibility".

He added: "I think the language used . . . is slightly over the top".