Accountant's forecast disputed

A prediction in a 1988 report by chartered accountant Coopers & Lybrand that the Master Meat Packers companies would experience difficulties up to 1991 was disputed yesterday by their founder, Mr Paschal Phelan.

However, Mr Phelan said he did agree that a central problem for the group as of 1987 arose from problems between the shareholders - himself and Middle Eastern businessman Mr Zacharia El Taher. He said Mr Taher would not meet him or discuss the problems.

He said Mr Taher owed some £1 million (€1.27 million) to the group.

Mr Phelan said he would not agree to Mr Taher's suggestion that $1 million (€1.11 million) of that amount should be divided between Mr Phelan and Mr Taher.

There were also problems relating to two ships supplied to the group by the Tahers which caused considerable financial losses. Mr Phelan had learned only from discovery documents that Mr Taher had come to Ireland in early 1988 and, unknown to Mr Phelan, had discussed the situation with the group's bankers.

Mr Phelan also dealt with a reference in the Coopers & Lybrand report to his receiving a £1.9 million dividend, and said there was an agreement in 1986 between himself and Mr Taher that the dividend would be paid.

Half of the dividend was paid to him in 1997 and he had loaned that money straight back into the companies, as a director's loan.

He was continuing his evidence in the lengthy legal actions involving himself, Mr Taher, Mr Larry Goodman and others. Mr Phelan is seeking multimillion pound damages arising from an alleged conspiracy between Mr Taher, Mr Goodman and others to force him out of the group.

The case continues today.