Councillor cannot explain failure to mention donation

MAHON TRIBUNAL:FORMER LABOUR councillor John O'Halloran said he couldn't explain why he did not tell the tribunal about a £5,000 donation given to him by Cork developer Owen O'Callaghan in November 1993.

The tribunal heard that Mr O'Callaghan said he gave Mr O'Halloran the donation after being asked for it. However, Mr O'Halloran said the donation was unsolicited.

A further donation of £2,500 given to Mr O'Halloran in March 1996 by lobbyist Frank Dunlop was also paid for by Mr O'Callaghan, the tribunal was told.

Mr O'Halloran admitted to asking for and receiving £500 from Mr Dunlop in May 1999, two months after his first private interview with the Mahon tribunal.

He made no reference to this donation when he made a further written statement to the tribunal in 2000 and did not mention the £5,000 donation from Mr O'Callaghan.

Counsel for the tribunal Pat Quinn SC asked why he did not include the donations when he spoke to the tribunal. He said that if the £5,000 donation had been a legitimate one, Mr O'Halloran would have included it in his response.

Mr O'Halloran said he couldn't answer, except to say that he "misunderstood the timescale" that tribunal counsel was questioning him about. He also said that when Mr O'Callaghan offered the money, he was surprised.

In June 1991, Mr O'Halloran became a councillor on Dublin County Council and supported the Quarryvale development after meeting Mr O'Callaghan and Mr Dunlop.

Mr Quinn said a "strong bond" developed between Mr O'Halloran, Mr O'Callaghan and Mr Dunlop.

"I wouldn't call it a strong bond, it was based purely on council business," Mr O'Halloran responded.

He said when he decided to support Quarryvale, his only concern was that it would go ahead "in the interests of the people".

He signed two motions in favour of Quarryvale in December 1992 and April 1993. Mr Quinn asked if he had drafted the motions himself. Mr O'Halloran replied that they were drafted by Mr Dunlop or Mr O'Callaghan.

He said he could not recall who drafted a letter he signed to then minister for finance Bertie Ahern in December 1993 calling for tax designation for the Quarryvale development and other developments in Clondalkin. The letter was signed one month after he received the £5,000 from Mr O'Callaghan.

The tribunal heard that Mr O'Halloran received a further £250 cheque from Mr Dunlop in December 1992, the day before he signed the first motion in support of Quarryvale. Mr O'Halloran could not recall if he asked for the money or why it was given to him, though he said it had no connection with the motion.

Tribunal chairman Judge Alan Mahon asked him how he would categorise the payment.

"I can't," Mr O'Halloran replied.

He also approached Mr O'Callaghan regarding a contract to provide catering through his company ASIL Catering on the Quarryvale site during construction. He said Mr O'Callaghan advised him to speak to Sisk, one of the builders on site, and he was given the contract in 1997.

Mr Quinn noted that accountants had problems preparing the accounts for the catering company due to a shortage of invoices and receipts.

"Your accounting system was somewhat lacking in documentation," Mr Quinn said.

Mr O'Halloran "came to part ways" with the Labour Party in July 1993, Mr Quinn said, when they suggested he was not supporting the party line. He had told the party he had a "quid pro quo" arrangement with other councillors, supporting their motions in return for their support of the Quarryvale development.