Dunlop's #10,000 cash fee a 'traceless transaction'

A £10,000 payment by prominent businessman Mr Denis Mahony to Mr Frank Dunlop was "an entirely traceless transaction" that "bore none of the hallmarks of a legitimate transaction between two professional people", the tribunal has heard.

The fact that the payment was made in cash and not invoiced or receipted indicated that it was not a legitimate transaction and was in fact "something else", according to Ms Patricia Dillon SC, for the tribunal.

Mr Mahony (75), who insists he paid the money as a professional fee to Mr Dunlop to lobby for the rezoning of his land in 1993, agreed the transaction did not bear the hallmarks of a legitimate professional transaction.

He also agreed that the money, and a further £2,000 "success fee" paid to Mr Dunlop in 1994, were the only times in his business career that he had paid money in cash, with no invoices or receipts issued. However, he denied an assertion by Ms Dillon that it was an "under-the-books" transaction.

It was not his normal practice to pay cash. He had done so because he was "so thrilled" to get Mr Dunlop's lobbying services for his land at Drumnigh, near Portmarnock in north Co Dublin, which had lain idle for 12 years.

The two men and adjoining landowner Mr Noel Fox met in the Shelbourne hotel in March 1993, a day before the deadline for making rezoning submissions. Mr Dunlop agreed to lobby for the rezoning in return for a fee of £10,000 in cash. "He said that was his line and he would be able to do a good job," said Mr Mahony.

Mr Dunlop has told the tribunal that the two landowners knew that he would be using the money to pay councillors but Mr Mahony repeated yesterday that this "never, ever" crossed him mind.

Mr Mahony said it had never dawned on him to write a personal cheque. He had the cash available in a safe deposit at his home. He didn't think at the time that he was leaving himself exposed.

Ms Dillon said the witness must have understood there was "something unusual" about his relationship with Mr Dunlop. "No, it never crossed my mind," Mr Mahony replied.

If this were a legitimate transaction, it would have been surrounded by all the hallmarks of legitimate transactions, such as invoices and receipts, Ms Dillon suggested. Mr Mahony agreed.

Earlier, the tribunal heard that Mr Mahony made donations to Fianna Fáil of £5,000 in 1987, and £1,000 and £2,500 in 1989. The party has confirmed receipt of the first two payments by its headquarters but has no record of the last one.

Ms Dillon asked it if was possible Mr Mahony had paid the money to Cllr G.V. Wright, or some other person in Fianna Fáil, rather than party headquarters.

Mr Mahony said this was unlikely, but he would check.

He agreed he had a relationship with Mr Charles Haughey but said he never discussed the lands with the former Taoiseach.