The auctioneer, Mr John Finnegan, was paid over £600,000 into offshore accounts arising from a business partnership with builders Brennan and McGowan, the Flood tribunal has heard. In at least six deals in which they were involved Mr Finnegan also acted as an agent for the seller. In three of the deals, he shared in the proceeds even though he had no interest in the property that was sold.
In the last deal, involving a sale at Sandyford in Dublin, Mr Finnegan received £126,000 after the deduction of £10,000 which went towards a joint contribution of £60,000 to former Minister Mr Ray Burke. Mr Finnegan says this money was paid without his knowledge.
Yesterday, the tribunal heard of Mr Finnegan's involvement in the sale of a Dublin property on St Stephen's Green.
Together with Brennan and McGowan, he owned 6/7 St Stephen's Green and received over £220,000 offshore in proceeds from its sale in 1980, Mr Tom Brennan told the tribunal. He also acted as an adviser to the purchasers, the Gallagher group.
Mr Brennan said £1.4 million for the St Stephen's Green property was "a great price". The property was developed as a small shopping centre and is occupied by the Habitat store.
Six Brennan and McGowan companies were involved in acquiring leasehold and freehold interests held in the property. These companies entered into an agreement with another Brennan and McGowan company, Green Trees Ltd, under which that company would manage the property.
When the property was sold, £900,000 was shared between the six companies, and after deduction of expenses, £671,000 was sent to London for distribution equally between Mr Finnegan, Mr McGowan and Mr Brennan. Where the rest of the money went is not clear.
Mr Pat Hanratty SC, for the tribunal, said this transaction differed from others involving the three men which the tribunal has examined. In this case, Mr Finnegan not only benefited from the sale of land but also invested £50,000 of his own and held a one-third share in the development.
Mr Hanratty said it appeared that the correspondence passing between the parties prior to the deal was "orchestrated" by Brennan and McGowan's accountant, Mr Hugh Owens. Mr Brennan said he didn't know why this was so.
Mr Hanratty said the same structure was in place in another land deal at Sandyford, Co Dublin. In this case, Mr Finnegan, Mr McGowan and Mr Brennan were partners in the acquisition by Canio Ltd of the lands, and shared the proceeds equally. Canio is the company that paid Mr Ray Burke £75,000 in 1984 and 1985.
Green Trees was the source of the deposit used to buy the Sandyford lands, Mr Hanratty said.
