Former senator Mr Liam Cosgrave is likely to face serious questions from Fine Gael colleagues after it emerged that he misled a party inquiry about the size and number of donations he got from Mr Frank Dunlop, writes Paul Cullen
Mr Cosgrave now says he received almost £8,000 in election contributions and other payments from Mr Dunlop, not the £3,000- £3,500 he declared to the Fine Gael inquiry in May 2000, it emerged at the Flood tribunal yesterday.
He failed to declare a £1,000 donation from Mr Dunlop in January 1993 and severely underestimated a £2,500 donation given in July 1997. Asked to explain why he had not disclosed the payments, he said he had forgotten or underestimated them.
Tribunal lawyers also revealed that Mr Cosgrave failed to declare the latter donation as required under ethics legislation, an offence under the Electoral Act 1997, which could lead to him being fined or even imprisoned.
Mr Cosgrave also acknowledged that he paid no income tax or VAT on a further undeclared payment of £1,815 from Mr Dunlop, which he said was for legal services.
He insisted that all the payments he received were legitimate political donations and had nothing to do with the rezoning controversies the tribunal is investigating.
However, his description of the Fine Gael inquiry as "sloppy" and "sinister" is likely to cause further friction with party colleagues.
The report of the inquiry, led by Mr James Nugent SC, said it was unable to come to a definitive conclusion in relation to the payments he received. Mr Cosgrave afterwards described the finding as "the worst thing that ever happened to me".
Mr Dunlop has named Mr Cosgrave as one of nine county councillors who allegedly took bribes in return for their votes on the rezoning of land at Carrickmines in south Dublin. The former lobbyist and Government press secretary claims he gave Mr Cosgrave about £20,000 in payments, some of which were legitimate political contributions and some bribes.
Mr Cosgrave acknowledged the new payments for the first time in a statement sent to the tribunal last Tuesday, the day he was scheduled to start giving evidence. The tribunal first asked him for information about political payments in December 1999.
Yesterday, he told lawyers he had co-operated fully with the tribunal and had nothing to hide.
A TD or senator for almost 20 years, he failed to get elected to the Dail in the Dún Laoghaire/Rathdown constituency in the 2002 general election. Before the election, Mr Cosgrave accused Fine Gael of trying to erase the family name when it added a third candidate to the ticket.
His evidence continues today.