Director recalls Gogarty influence

The managing director of James Murphy Structural Engineering, Mr Frank Reynolds, told the Flood tribunal yesterday the former…

The managing director of James Murphy Structural Engineering, Mr Frank Reynolds, told the Flood tribunal yesterday the former chairman, Mr James Gogarty, had an enormous influence on him from the time Mr Reynolds joined the company in 1978 until long after becoming a director in 1988.

"I was closer to the inside of his mind than anyone else in the organisation," Mr Reynolds said. "He spilled his heart out to me. He called me Frankie. I called him `Mr G'."

He had learned a great deal from Mr Gogarty over the years. Mr Reynolds's early executive responsibilities were confined to plant and transport. Later he was in charge of contracts, but not estimating them. That role was to fall to Mr Gabriel Grehan.

Mr Reynolds, who was being examined by Mr John Gallagher SC, for the tribunal, paid tribute to what he called "the good side" of Mr Gogarty. There was no doubt whatsoever about "his total loyalty to Joe Murphy snr, Una, Joe jnr and Angela". Mr Gogarty was for many years the epitome of the loyal company servant, who as chairman would take sandwiches to the ESB project in Moneypoint, Co Clare, rather than spend unnecessarily at the company's expense.

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It was this type of mind-set that was behind his later assertions that certain JMSE executives had access to a "slush fund", when people were being flown in by private aircraft to Moneypoint, for instance, as well as other apparent excesses denoting a different management style. Neither he nor the financial director, Mr Roger Copsey, could find any evidence of a slush fund, however, to substantiate these claims.

There were other bizarre incidents, too. Mr Gogarty's "hands-on" approach at the largest of the ESB sites drew him into confrontation with the workers there when the plant was built, and he was responsible for a strike that lasted three months. "He was jumping out of the car, taking off his coat and taking on the picketers." In the end the ESB requested that someone should replace him.

Though not directly involved Mr Reynolds became aware in 1988 of the action being taken by Mr Murphy snr and Mr Gogarty to oust Mr Liam Conroy, the former chief executive, and his team.

Mr Reynolds and Mr Gabriel Grehan were appointed directors of JMSE in December 1988 as part of the new team that replaced the former Conroy allies, he told the tribunal. There was a new chief executive, Mr Tim Parker, based in England.

A number of concerns were brought to the attention of the new directors by Mr Gogarty, which became the subject of correspondence between them and Mr Copsey. These included the fact that no board meetings were being held.

Mr Gogarty had impressed on them that there was an "elite group" running the company. He was also adamant that under no circumstances should they sign the 1987 accounts as Mr Copsey wanted, because the stock position was overstated. Mr Reynolds and Mr Grehan drew up the minutes of a directors' meeting with Mr Copsey in which these concerns were highlighted.

"Jim Gogarty told us to put in what was said about the elite group," Mr Reynolds admitted to Mr Gallagher, and to say "we were only being used to sign controversial accounts" and "be parties" to other issues.