Keating planning `fight to restore name'

The former Lord Mayor of Dublin, Mr Michael Keating, who, it was alleged in a British court, had links with a man jailed for …

The former Lord Mayor of Dublin, Mr Michael Keating, who, it was alleged in a British court, had links with a man jailed for a multi-million pound tax fraud, said yesterday he had been "massively smeared" and would fight to restore his name. Mr Keating said he was not afraid to travel to England to help police and customs with their investigations, despite the possibility he could be arrested there. "I'm not afraid to go anywhere," he said. "There was nothing improper or illegal involved on my part."

Daniel O'Connell, a former business associate of Mr Keating from Limerick, was sentenced to eight years' jail at Middlesex Crown Court on Wednesday for his part in a £20 million tax fraud.

Mr Keating, a former deputy leader of the Progressive Democrats and Fine Gael TD who is now out of public life, said he had not dealt with O'Connell since 1996.

During the trial it was alleged by the prosecution that the fraud was achieved with the help of Mr Keating. The jury rejected O'Connell's claims that Mr Keating had forced him into a life of crime. Last week, a second former associate of Mr Keating was acquitted of five counts of tax evasion.

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Mr Keating has also strongly denied that O'Connell put millions of pounds through his bank accounts in Dublin. He said it was "appallingly bad" that damaging claims could be made in court and those being damaged were not entitled to representation or to be heard. "I couldn't afford a watching brief on the case and it cost £500 a day for the court transcript," he said. He added he was "horrified" at what had emerged during the 27-week trial.

He said he would look at a number of "delicate legal issues" with his legal advisers, including whether court privilege for reporting transferred jurisdiction. "I have no wish to hide behind this but there should be some fairness." He said he believed O'Connell may have thought that if he "produced someone sensational" it would have carried weight with the jury. Mr Keating said he felt bad for his wife and children but claimed O'Connell had attempted to draw in up to 30 people.

"I am assuming he contrived and fabricated evidence," he said. He described statements in court that he had threatened O'Connell with violence as "absolute rubbish".

The trial was told by Mr Peter Rook QC, prosecuting, that the fraud was based on the VAT-free status of goods exported from one EU country to another. O'Connell bought consignments of computer chips and components and made them appear as if they were for companies in Ireland and therefore not liable for VAT when purchased.

Mr Rook said that while Mr O'Connell was the "prime mover", the crown's case was that Mr Keating and two firms he was involved with, also played a central role.

Mr Keating yesterday stressed that the British authorities and those investigating the case did not make one phone call or communication with him. "It would be different if we got an invitation and turned it down, but we didn't."

The jury at Middlesex Guildhall Crown Court found O'Connell (47), of Catherine Street, Limerick, guilty of five counts of tax evasion between April 1996 and February last year. The judge described the case as one of the greatest tax frauds ever prosecuted.