Tribunal looks at references to helicopter firm

The Flood tribunal is investigating references to Celtic Helicopters, the aviation company run by Mr Ciaran Haughey, in the accounts of the developers Mr Michael Bailey and Mr Tom Bailey.

The link emerged during a recent Supreme Court case taken by Mr Tom Bailey and his wife, Caroline, in which they sought unsuccessfully to prevent the tribunal publicly examining their private accounts.

According to the tribunal, no decision has been taken to raise the matter in public until Mr Justice Flood determines whether any payments made to Celtic Helicopters are relevant to his inquiry.

It is believed that lawyers for the Baileys have explained that the payments to Celtic Helicopters, which are recorded in their books, relate to flying hours clocked up by the brothers. Both use helicopters often in business and to travel to race meetings.

On one occasion last year Mr Michael Bailey travelled by helicopter to the Galway races immediately after completing his day's evidence to the tribunal.

The tribunal is expected to begin public hearings shortly into the financial affairs of the Baileys and their company, Bovale Developments, following last month's Supreme Court decision, which was unanimous.

The tribunal is seeking information that might be relevant to the circumstances of the alleged payment to the former Fianna Fail minister, Mr Ray Burke, in June 1989. Mr Michael Bailey was present when Mr James Gogarty handed over at least £30,000 to the politician but denies Mr Gogarty's allegations that he paid a matching sum.

The Baileys had asked for their financial affairs to be investigated in private in the first instance, claiming this would give the tribunal the opportunity to get the material it was seeking and at the same time protect the rights of the company and its directors.

The tribunal took the view that it was necessary to examine Mr Tom Bailey's and Ms Caroline Bailey's private financial affairs as these were intermeshed with those of Bovale and Mr Michael Bailey.

Mr Gogarty, the former managing director of JMSE, has also alleged that he was given a cheque for £50,000 by Mr Michael Bailey, which he never cashed.

However, the Baileys claim they paid substantial sums, amounting to £162,000, to Mr Gogarty as a "finder's fee" on a land deal.

Many of the Baileys' financial documents were destroyed in a fire in their site office some years ago and records stored with the company's accountant were destroyed by flood water, the tribunal heard.