PDs got blank cheque as political contribution, according to counsel

Mr James Gogarty sent a cheque with the payee line left blank to Mr Desmond O'Malley, the then leader of the Progressive Democrats, in 1989 as a political contribution, Mr Colm Allen SC, for the Baileys, told the Flood tribunal yesterday.

Mr Gogarty, who had earlier strenuously denied that he ever made a political donation in his life, described the allegation as "bullshit".

Introducing evidence of a cheque which was payable for £1,000 and which he said was signed by Mr Gogarty, and drawn on a Murphy group bank account at the Allied Irish Banks branch in Talbot Street, Dublin, Mr Allen said that internal Murphy group documents would show that the cheque was sent to the Progressive Democrats.

The cheque was allegedly prepared in response to a letter from Mr O'Malley to Mr Gerard Downes, JMSE company secretary, and dated June 9th, 1989, in which Mr O'Malley thanked the company for its support in the past and said future help was vital.

Mr Allen showed Mr Gogarty a photocopy of the cheque on which the words "£1,000 per J Gogarty" were written. Mr Gogarty responded "Oh Jesus, who wrote that?"

Mr Allen asked if the cheque was not signed by Mr Gogarty as described. Mr Gogarty replied: "Yes. What are you making of it?"

Mr Allen said additional notation on the photocopy which was initialled by Mr Frank Reynolds, JMSE managing director, read: "Tim, (a reference to Tim O'Keeffe, an accountant with JMSE) please find attached copy of cheque which we discussed. Mr G said we should leave it up to the PDs as to whether it's paid to cash or the PDs. FR 18/7/'89."

Mr Allen said it would be the evidence of Mr Reynolds that Mr Gogarty dealt with this political donation, a direct contravention of Mr Gogarty's evidence, which was supported by the cheque and handwritten notes.

Mr Gogarty said the suggestion was "a damned lie. I want to emphasise that it was - with no disrespect to the Progressive Democrats - a damned lie. Bullshit. Bullshit".

Mr Gogarty continued: "What do you want to make out of that? What are you trying to imply?"

Earlier Mr Allen had addressed the issue of the payment to Mr Ray Burke, pointing out that it would be Mr Michael Bailey's evidence that Mr Gogarty was in regular contact in 1989 and that the Murphy group wanted to make a political donation to Fianna Fail. "I thought that was me, I thought I was on a frolic," said Mr Gogarty.

Mr Gogarty was then asked if he denied that a donation to Fianna Fail was planned.

"Of course I do. They arranged it themselves", Mr Gogarty said.

"I never gave a donation in all my life to a political party", Mr Gogarty insisted.

Mr Allen said that Mr Bailey told him that if he wished to make a contribution, the appropriate person was Mr Ray Burke.

Mr Gogarty said: "Well, he picked the right man, didn't he?"

Mr Allen said Mr Bailey would say in evidence that he had indicated that Mr Burke was a senior member in the Fianna Fail Coalition Government and in the constituency in which Mr Bailey was a member of the St Margaret's Fianna Fail cumann.

Mr Gogarty said Mr Bailey had said it all in his letter. "He picked the right man to procure, in your words, professional services".

Mr Allen said Mr Bailey would say that he phoned Mr Burke and indicated that Mr Gogarty wished to make a political contribution on behalf of Murphys.