Monahan paid for Tallaght tax status

Businessman Phil Monahan spent £850,000 to secure tax-designation status and high-profile retailers for the shopping centre he developed at Tallaght town square, the tribunal has heard.

Mr Monahan wrote to his business partner GRE in 1992 claiming that "additional marketing costs" he incurred were critical in ensuring the centre received tax designation and "an appropriate tenant profile".

As a result of his efforts, he claimed when seeking reimbursement of "significant professional fees" from GRE, the centre's value increased dramatically and £24 million was invested in the project before it even opened.

The then minister for the environment, Pádraig Flynn, awarded tax-designation status to Tallaght in 1989. The decision to grant urban renewal tax incentives to a greenfield suburban site was highly controversial at the time.

GRE rejected Mr Monahan's claim for reimbursement of "hello money" payments to multiples taking space in the centre, saying it had already paid £1 million to his company, Monarch Properties, outside their joint venture to reflect other deals.

Mr Monahan's long-time secretary, Ann Gosling, told the tribunal yesterday she knew nothing about this aspect of the project, nor did she know about a meeting between Mr Monahan and Mr Flynn in May 1989. A fortnight later, Mr Monahan contributed £16,000 to Fianna Fáil.

Patricia Dillon SC, for the tribunal, said there was a further meeting between the two men in February 1991. Six days earlier, Mr Monahan gave £25,000 to Charles Haughey.