JMSE has yet to take proceedings to recover £30,000 donation - Reynolds

JMSE has yet to initiate proceedings against either Mr Ray Burke, the recipient, or Mr James Gogarty, who made the payment, for…

JMSE has yet to initiate proceedings against either Mr Ray Burke, the recipient, or Mr James Gogarty, who made the payment, for recovery of the £30,000 political donation which is the subject of the Flood inquiry, it was confirmed yesterday.

But it is suing a number of newspapers, including the Sunday Business Post and Sunday Independent, over articles arising from Mr Gogarty's allegations.

It was not clear what other litigation was in train since Mr Joseph Murphy jnr was dealing with Gogarty-related matters, the company's managing director, Mr Frank Reynolds, told Mr John Gallagher SC, for the tribunal.

"My understanding is that Mr Murphy in his evidence said that no such proceedings had been instituted," said Mr Gallagher, in respect of the £30,000 payment to Mr Burke.

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Mr Garrett Cooney SC, for the Murphy interests, intervened to say that two sets of proceedings against Mr Gogarty were currently in train. One was in respect of the sum of £162,000 paid to him by Mr Michael Bailey, the other for defamation. No proceedings had been issued over the payment to Mr Burke.

Mr Brian O'Moore SC, for Mr Gogarty, sought to clarify matters about what he called these "dramatic" developments in respect of the Bailey-related proceedings. "A writ had been issued but not yet served," Mr Cooney said. "We're extremely interested in the telephone evidence."

Earlier, he had asked his client to recall his reaction when he had been allegedly identified by Mr Gogarty in a Sunday Business Post article in May 1998 as a "conduit" who had made payments to a number of politicians to obtain planning permission.

"I could not believe that somebody that I'd worked with for so long could stoop so low," Mr Reynolds said.

These allegations were not just about the payment to Mr Burke, Mr Cooney reminded him, "but that you directly bribed other politicians, members of the Fianna Fail and Fine Gael parties". They were "shocking allegations", Mr Reynolds agreed, "not only against me, but against the politicians".

"If these are journalists of integrity and the writing is truthful it means that Mr Gogarty was making further serious allegations against you?"

Did he intend to take matters against the newspapers and journalists concerned any further?

"I certainly do."

Earlier under cross-examination by Mr O'Moore he said the Murphy Group's financial director, Mr Roger Copsey, "would not know an animal if it jumped out at him". He was being asked who in fact controlled the Murphy land companies. Mr Reynolds had no doubt on the issue. Even though Mr Copsey was financial director and Mr Murphy snr was the equity holder, Mr Gogarty had full control of the land companies.

"The person who ultimately controlled the lands was Mr Murphy snr," Mr O'Moore asserted. "Not on a day-to-day basis. He would not know where to go on the lands. Mr Gogarty always accompanied him."

In fact neither of the Murphys, father or son, knew where the lands were, said the JMSE executive. Mr O'Moore wondered why, if Mr Gogarty had had "full control", he had not endeavoured to get rid of Mr Copsey, whom he mistrusted and disliked.

This assertion brought the first in a number of legal submissions by Mr Cooney, who said the witness was referring to "full operational control" of the land companies.

But ultimate control of the land-owning companies lay with Mr Murphy snr, Mr O'Moore persisted.

"No, Jim Gogarty," Mr Reynolds replied.