Revenue claims privilege over Dunnes cheques

The head of the prosecutions unit of the Revenue Commissioners yesterday claimed privilege when asked about cheques used to pay for work on the home of Mr Ben Dunne.

Mr Liam Liston indicated in evidence to Naas District Court that he was involved in investigations into the payment of construction company Faxhill Homes Ltd by Dunnes Stores, for work carried out on the Tipperary home of the former Fine Gael Minister, Mr Michael Lowry, and Mr Dunne's home in Castleknock, Co Dublin.

The court has heard that invoices for work worth £1.4 million (#1.78 million) were issued by Faxhill Homes in 1992/1993, purporting to show the work carried out on the two homes as having been carried out on business premises linked to the Dunnes group. Faxhill Homes and its directors, Mr John Tierney and Ms Jennifer Tierney, have pleaded not guilty to 26 offences under the companies acts, and guilty to a further three offences.

Mr Liston yesterday produced the originals of four cheques which he said he was given by Mr Pat O'Donoghue, chief financial officer of the Dunnes Stores group, in early 1997. The cheques, totalling approximately £400,000, are ones signed by Mr Dunne and connected with work Faxhill Homes conducted on Mr Lowry's home.

Asked by Mr Colm P Condon, for Faxhill, whether he had also "uplifted" from Dunnes Stores the original cheques used for payments to Faxhill concerning Mr Dunne's home, Winterwood, in Dublin, Mr Liston said he had a difficulty with the question.

Judge Tom Fitzpatrick said an earlier witness from the Revenue had been excused from answering questions on the basis that it might prejudice an investigation. Mr Condon asked Mr Liston if he was not in a position to answer questions in relation to the "Winterwood investigation". Mr Liston said: "That's right."

Mr Desmond Gibney, an accountant with O'Hare & Associates, Dublin, who worked with the authorised officer to Faxhill Homes, Mr George Maloney, said Faxhill had a turnover during the period 1989 to 1998 of £14 million but had sales invoices on file for only £11.35 million. He was unable to resolve the two figures.

The prosecution case has ended and Mr Condon has begun a submission applying for a direction that the charges be dropped. The case continues.