A company which failed to get the contract to build the national aquatic and leisure centre at Abbotstown, Co Dublin, deliberately financed itself to ensure it did not have money should it lose its legal challenge to the awarding of the contract to another consortium, it was claimed at the High Court yesterday.
The State and Campus Stadium Ireland Development Ltd (CSID), the company asked to assess and award the Abbotstown contract, has requested Mr Justice Ó Caoimh to order Dublin International Arena Ltd (DIAL) to give security for legal costs in its proceedings.
The contract was awarded to Waterworld (UK) Ltd and DIAL initiated proceedings arising from that decision. It is seeking a declaration that the competition for the contract to build the aquatic centre did not conform with EU directives.
DIAL's chairman, Mr Martin S. Kenney, claimed yesterday that, based on a report of the Attorney General who reviewed the award procedures, Waterworld ought never have been admitted to the process or ought to have been disqualified.
In an affidavit, Mr Kenney claimed the winning consortium was allowed by CSID to "reinvent itself". He said under-bidders were treated with inequity and unfairness "by means of the awarding authority's participation with the winning consortium".
Despite attempts over 15 months to obtain relevant and meaningful information about the tender assessment processes, DIAL had been left in the dark. But for the Attorney General's report, DIAL would have continued to flounder in the dark and the judicial review proceedings would not have been brought.
Mr Paul Gardiner SC, for the State, said DIAL was a special purpose vehicle set up to bid for the Abbotstown contract.
DIAL had no assets because it was claimed it was going to be financed if it got the contract.
Counsel said Mr Kenney, of Killiney Hill Road, Killiney, Co Dublin, was running this action, it seemed, out of his own pocket. There were also two Finnish companies who had acquired 87.5 per cent of the issued share capital of DIAL in April 2002 before DIAL instituted its action.
In circumstances where DIAL was contending the State and CSID had no answer to its claim, Mr Gardiner said one might have expected the Finnish companies, with an annual turnover of €697 million, would show their commitment to the proceedings by providing monies which would be lodged to the credit of their action.
In an affidavit, Mr Seán Benton, chief executive of CSID, said Waterworld's bid was considered to be the most satisfactory and was significantly less costly than other bids. DIAL'S bid was less satisfactory.
The hearing continues today.