IFG retains a significant holding in Rayband Ltd, a company at the centre of the current round of the investigation into planning corruption.
The Mahon tribunal heard allegations this week that an IFG subsidiary, IFG Securities, gave Ir£27,625 (€40,000) to lobbyist Frank Dunlop to pay bribes to obtain a rezoning of land in Lissenhall, Co Dublin, owned by Rayband Ltd, its 35 per cent owned subsidiary. Shares in the group rose 6 cent to €2.02 yesterday.
According to the company's most recent annual report, it is owed €1.13 million by Rayband, in which it still holds a 35 per cent stake. The remainder is owned by IFG's chairman Joe Moran and his family.
"These advances are unsecured, interest-free and have no fixed repayment date," according to the report. The document also shows that IFG charged Rayband fees of €6,000 in 2004.
Mr Dunlop claimed he used some of the cash payment - which was authorised by Mr Moran - to bribe councillors, Fianna Fáil's Cyril Gallagher and Tony Fox, and Fine Gael's Tom Hand, to support the motion to have the land rezoned. Mr Fox denies the allegation, and the others have since died.
Rayband was seeking to have land it owned in Lissenhall in Co Dublin rezoned from its designated agriculture use to industrial. At the time, IFG Securities held just under 30 per cent of Rayband, whose other shareholders were IFG chairman Joe Moran, his family, through a trust, and investor Michael Hughes.
IFG Securities has since increased its stake in the company to 35 per cent. Mr Hughes sold his stake, which was split equally between IFG Securities and the Moran family.
IFG Securities' company secretary Donal Lynch is set to take the Mahon Tribunal witness stand next week and explain his company's involvement with Rayband and the payment to Mr Dunlop. IFG did not want to comment on its involvement yesterday as it did not want to "anticipate" those proceedings, a spokesman said.
Rayband was established in 1987, and the following year Mr Moran and IFG chief executive Richard Hayes became directors. It bought the Lissenhall lands from developer Wall Properties Ltd.
According to the opening statement in this round of the Mahon enquiry, the company sought to have the land rezoned following a meeting in Dublin between Mr Moran and former Fianna Fáil minister Ray Burke.
Mr Burke resigned in 1997 following revelations about his own involvement in the planning scandal.
Mr Moran denies that the cash given to Mr Dunlop was intended as a bribe. He authorised the payment from IFG Securities to the lobbyist.
