Heads rolled after boardroom coup

The 1998 Murphy group boardroom coup which ousted chief executive Mr Liam Conroy also caused "other heads to roll", including that of the company secretary, Mr Gerry Downes, Mr Brian Leonard SC, for Mr Downes, told the Flood Tribunal yesterday.

Mr Leonard insisted that Mr Downes parted from the group as a result of the internal feuding between Mr James Gogarty and Mr Joe Murphy snr on one hand, and Mr Liam Conroy and Murphy group management on the other.

Cross-examining Mr Brendan Devine, a former partner in Murphy group accountants Ernst & Whinney, Mr Leonard asked if "when a decision had been made to remove Mr Liam Conroy other heads rolled as a consequence of it and not as a result of any evidence that you are aware of, of wrongdoing on the part of Mr Downes". Mr Devine agreed that this was the case.

Mr Devine said the internal feud between Mr Conroy and the Murphy group had also indirectly led to the break-up of his friendship with Mr James Gogarty.

In a draft affidavit filed by Mr Gogarty and referred to by Mr Leonard yesterday, Mr Gogarty gave his account of the split, saying he originally had complete faith in Mr Devine but added "I now realise how wrong I was".

Mr Devine also told Mr Leonard that Mr James Gogarty had appeared to be willingly involved in the day-to-day operations of the Murphy group holding company in Dublin, JMSE. Mr Devine said Mr Gogarty took much greater interest in the day-to-day running than was required of him, as he was then a non-executive chairman. Mr Gogarty had previously given evidence that he was involved with the company only under duress, as he was still hoping to secure a pension.