Chairman says Dunlop horse deal 'suspicious'

Tribunal chairman Judge Alan Mahon said yesterday Frank Dunlop's payment of almost £64,000 for a horse that subsequently died raised "a significant degree of suspicion" and "warranted close questioning".

The former Fianna Fáil press secretary was questioned for the second day running on his purchase of a horse from breeder Jim Bolger in March 1992.

Counsel for the tribunal, Patricia Dillon SC, told the tribunal that, according to a statement by Mr Bolger, the horse was chosen in September and the payment of £63,917 included the upkeep of the animal as well as farrier and veterinary fees up to October 1993, when it was expected the horse would be sold in the yearling sales. However, the animal died in an accident in July 1993.

Ms Dillon said it appeared that Mr Dunlop had paid the money before Mr Bolger had even chosen the horse. Counsel for Mr Dunlop, Aidan Redmond BL, said it was unfair to ask Mr Dunlop to interpret Mr Bolger's statement.

However, Judge Mahon intervened to disagree. "It was a most peculiar transaction . . . that has to arouse a very significant degree of suspicion about the payment, such as warrants very close questioning of Mr Dunlop and Mr Bolger," he said.

Ms Dillon asked Mr Dunlop if he got a rebate of some of his fee after the horse died, given that he had paid for its upkeep until October 1993. Mr Dunlop said he did not.

The tribunal also heard that Mr Dunlop paid up to £28,000 to the late Liam Lawlor in March 1992 on the promise of a shareholding in the Citywest development in Dublin. The shareholding never materialised.

He said he discussed the arrangement with Mr Lawlor and businessman Harry Dobson in the visitors' room in the lobby of Leinster House and also in the offices of Davy Stockbrokers.

Mr Dobson was a shareholder in Saggart Partnership, one of the companies behind Citywest. According to Mr Dunlop, Mr Lawlor asked for money and Mr Dobson told Mr Dunlop that if he gave Mr Lawlor the money, he would reimburse him with shares in the development.

Mr Dunlop agreed, and paid Mr Lawlor between £26,000 and £28,000 in cash at his offices in Mount Street. He told the tribunal that he sometimes had up to £100,000 in a briefcase.

After the payment, he contacted Mr Dobson a number of times by phone to try to get the shares he was owed, but he was never given them.

The tribunal heard that Mr Dobson denied the arrangement had been made.

Judge Mahon said the shares would now be of "significant value", running into hundreds of thousands of euro.

He asked Mr Dunlop why he hadn't followed up the issue "with greater passion", since he claimed Mr Dobson had "welched on this arrangement".

"I did what I did," Mr Dunlop replied.