The managing director of Bovale Developments, Mr Michael Bailey, required £50,000 in cash from Anglo Irish Bank in November 1989 to pay a "finder's fee" or commission, the planning tribunal was told yesterday.
Mr William Barrett, who in 1989 was a senior manager with Irish Bank of Commerce, a subsidiary of Anglo Irish Bank, said his recollection was that Mr Bailey said he needed the £50,000 loan "immediately" for commission or a finder's fee.
When Mr Bailey came to his office in St Stephen's Green, Dublin, he also asked for £230,000 from the bank to put a deposit on lands he was planning to purchase from the Murphy group.
Referring to the £50,000 request, Mr Barrett said: "I told him we didn't hold that kind of money, but that I would organise it for him. On the £230,000 I told him that we would give him the money on certain conditions."
Answering counsel for the tribunal, Mr Patrick Hanratty SC, Mr Barrett said a cheque for £50,000 was made payable to Mr Michael Bailey and Mr Tom Bailey and the crossing on it was removed so it could be cashed.
Mr Hanratty asked Mr Barrett about a hand-written document which accompanied the cheque which included a line about "230 plus 50 cash (of 150)".
"The 50 says of 150. What does that mean?" asked Mr Hanratty. "I don't know," Mr Barrett said.
"Was it intended that there would be more cash required?" asked Mr Hanratty. "I don't remember," Mr Barrett replied.
Mr Hanratty asked Mr Barrett why he did not inquire about why the money was needed in cash. "Well, remember Mr Bailey was a good client of the bank. He wanted to borrow £50,000 and I was willing, with the knowledge of him and his record with the bank, to give him £50,000," he said.
Cross-examining the witness, Mr Colm Allen SC, for Bovale Developments and Bailey Bros, said Mr Michael Bailey would state in evidence that "he was paying a finder's figure of £150,000 to Mr Gogarty".
When asked if he had any recollection of this Mr Barrett replied: "Not specifically, but I have already said that it is a fair assumption". The tribunal heard that Mr Bailey had estimated several dates when parcels of land from the Murphy group would be brought into development.
Mr Frank Callanan SC, for Mr James Gogarty, said Mr Bailey was confident that he would obtain planning permission for the lands he was buying from the Murphy group.