The Flood tribunal has uncovered new evidence linking the former Fianna Fail minister, Mr Ray Burke, to a multi-million pound land deal involving a company from which he received substantial amounts of money.
Mr Burke supported the proposed sale of land at Sandyford, Co Dublin, by Canio Ltd to Dun Laoghaire Corporation, according to evidence presented to the tribunal yesterday.
Canio, a Channel-Islands registered company owned by builders Mr Tom Brennan and Mr Joe McGowan and estate agent Mr John Finnegan, paid Mr Burke a total of £110,000 in 1984 and 1985. At least £60,000 of this was paid out of a loan secured to buy the land at Sandyford.
Mr McGowan is alleged to have said in July 1985: "Everybody is behind this sale [to Dun Laoghaire Corporation] . . . Ray Burke . . . the whole works." His comments were secretly recorded by a solicitor who was in dispute with Mr Brennan and Mr McGowan at the time.
Mr Pat Hanratty SC, for the tribunal, said this indicated Mr McGowan and Mr Burke had discussed the matter.
Mr Hanratty also revealed that in 1989 Mr Burke, who was then Minister for Industry and Commerce, made representations to the chairman of the Revenue Commissioners on behalf of a Brennan and McGowan subsidiary which had tax difficulties at the time. This followed extensive negotiations between the company's accountants and the Revenue, which refused to budge in its tax demand.
Mr Burke phoned the chairman of the Revenue Commissioners, counsel said, and made representations on behalf of his friends, Mr Joe McGowan and Mr Tom Brennan, in relation to the tax matter. The Revenue chairman sent a letter to Mr Burke on April 7th, 1989 "setting out the Revenue Commissioners' stall".
Mr Brennan and Mr McGow an have retracted their previous evidence in relation to fundraising on behalf of Mr Burke, it was also learned yesterday. Last year, the two builders described how they raised £150,000 for the politician at a series of lavish fundraising dinners held at Cheltenham and other sporting venues in the UK.
Now, faced with evidence from the tribunal that the money came instead in the form of "specific lump-sum payments" from offshore companies under their control, they have written to the tribunal accepting their earlier evidence was incorrect.
Mr Brennan and Mr McGow an now say their contribution of £60,000 to Mr Burke in 1984 was a political donation unrelated to fundraising.
In September 1997, Mr Burke told the Dail £30,000 was the largest contribution he had received during an election campaign.
Mr Hanratty also disclosed the result of the tribunal's investigations into the construction of Mr Burke's former home, Briargate, in Swords, by Oakpark Developments - a Brennan and McGowan company.
The company paid £7,500 for the site in 1973, but no money changed hands when the house was built for Mr Burke, the solicitor who handled the conveyance has told the tribunal. However, the managing director of Oakpark Developments said Mr Burke subsequently paid £15,000 directly to the company.
Mr Finnegan has told the tribunal he wished to dissociate himself from any payment to Mr Burke. The payments by Canio were made without his authority.
With the help of advice from Mr Charles Haughey's accountant, Mr Des Traynor, Mr Finnegan sold his share of Canio to Mr Brennan and Mr McGowan in 1990. Most of the proceeds were remitted to Henry Ansbacher bank in London.
