O'Callaghan says corruption not discussed

CORK DEVELOPER Owen O'Callaghan has said he never discussed bribery and corruption in Dublin county council with lobbyist Frank Dunlop.

Mr O'Callaghan told the Mahon tribunal yeserday that despite a demand of £250,000 from the late Fine Gael councillor Tom Hand, and an allegation that former Fianna Fáil councillor Finbar Hanrahan asked Luton-based developer Tom Gilmartin for £100,000, it did not occur to him that corruption might be more widespread.

"Maybe I'm naive and silly, but it did not, I'm afraid," Mr O'Callaghan said.

The tribunal was told that Mr Gilmartin, Mr O'Callaghan and Mr O'Callaghan's business partner John Deane met in Buswell's Hotel in January 1989.

Although they became partners in the Quarryvale project in 1991, at the time Mr Gilmartin and Mr O'Callaghan were rivals.

Mr Hanrahan was also present at Buswell's and he spoke to Mr Gilmartin alone. Afterwards, Mr Gilmartin left the hotel in a hurry and Mr O'Callaghan followed him outside. He was very angry, Mr O'Callaghan said, and claimed Mr Hanrahan had asked him for £100,000.

Counsel for the tribunal Patricia Dillon SC asked Mr O'Callaghan why he did not disclose the incident to a Garda inquiry into corruption in 1989.

Mr O'Callaghan said he had no proof. "Ninety-nine per cent of those people were as decent a people as you could find," he said.

However, Mr O'Callaghan did discuss the Hanrahan matter with Mr Dunlop in the early 1990s, after he engaged him to lobby for the Quarryvale project. "I could mention things in private to Frank Dunlop that I couldn't mention to anybody," he said.

Ms Dillon asked if Mr O'Callaghan had asked "the most natural question in the world - 'Look, Frank, is this kind of thing going on all the time?'"

"Not at all," Mr O'Callaghan said.

The tribunal heard that Mr Hand had asked Mr O'Callaghan for £250,000 in 1992 for his support of the Quarryvale development. Mr O'Callaghan said he did not take it seriously because the sum asked for was ridiculous. He thought Mr Hand was not 100 per cent sane at the time.

"I suggested there and then that if he didn't stop this carry-on, I'd report him to his party leader . . . there were a few expletives and I left the room," Mr O'Callaghan said.

Judge Gerald Keys said he could not understand why Mr O'Callaghan did not complain to gardaí about the demand.

Mr O'Callaghan said he was new to Dublin and had come from a "totally different" culture. "Why was I going to be the person who was going to stand up and do this? I didn't have any proof of this."

Ms Dillon asked Mr O'Callaghan if he discussed corruption and bribery of councillors with Mr Dunlop after Mr Hand's request. Mr O'Callaghan said he did not.

The tribunal heard Mr O'Callaghan did give more than £100,000 to five politicians associated with the Quarryvale project. They were: Colm McGrath, the late Liam Lawlor, Seán Gilbride, John O'Halloran and GV Wright.

"I wanted them to stay in position because they were supporters of mine," Mr O'Callaghan said.

He said he was surprised when Mr Dunlop told the tribunal he had been systematically bribing councillors. He met Mr Dunlop in Dunboyne after he gave evidence in April 2000, but Mr O'Callaghan said he did not ask him if he made any payments.

Ms Dillon said that was an "extraordinary omission that beggared belief". Mr O'Callaghan said when he met Mr Dunlop he was in a very bad way.

"If I asked that question it would have been one of the most selfish things I would have ever done," he said.