The supplier of tyres to the Garda had a "special relationship" with members of its transport section, a jury has heard at Dublin Circuit Criminal Court.
Ben Meehan, a former national fleet sales manager at Advance Tyres, is accused of conspiring with his colleague, Michael Queenan and with Sgt Ronan Dunne to falsify figures so that Advance would retain the Garda contract in 1998.
Mr Meehan (47), Bettyglen, Raheny, Dublin, has pleaded not guilty to conspiring to defraud the Minster for Justice by agreeing to prepare a memo, which purported to be a price list of Advance Tyres Company Ltd, to support a false analysis of comparative tyre prices which they knew to be false, with the intention to defraud, between May 1st, 1998, and July 31st, 1998.
Fergal Foley, prosecuting, read into evidence yesterday a statement made by Mr Meehan to gardaí in September 2001, in which he said an audit of Advance's price list had been ordered by Supt Michael Murray, who was in charge of the transport section, in 1998.
Mr Meehan told gardaí that in the event of a value-for-money audit, Supt Murray needed to be certain he could justify the incremental cost of dealing with Advance over other suppliers as he was aware of the transport section's special relationship with the company.
Supt Murray earlier told defending senior counsel Aileen Donnelly that he did not recall asking for a price analysis to be carried out. He would only have requested an analysis if he had concerns about the system of tyre supply but he had none.
Mr Meehan told gardaí, under caution, in 2001 that Advance's pricing was inconsistent and rarely in favour of the Garda. "Our prices would not stand up to scrutiny."
The jury also heard that high-ranking gardaí were subject to disciplinary action following an investigation triggered by newspaper reports that they had been on foreign golfing trips paid for by Advance Tyres.
Supt Michael Murray, formerly in charge of transport; technical inspector Brian Mahon; Garda fleet manager Oliver Hanlon, and sergeant in charge of stores PJ Murray, were fined when found to be in "discreditable conduct" for going on the trips and receiving gifts from the company.
The trial continues before Judge Yvonne Murphy and a jury.