The founder of Master Meat Packers, Mr Paschal Phelan, told the High Court yesterday that a joint-venture agreement of October 1986 between himself and his Middle Eastern business partner, Mr Zacharia El Taher, was an agreement which it suited him to make. The agreement "was not something I had to make", Mr Phelan said.
He said he did trust the Tahers at that time. While there had been problems in that he had been unhappy with the contribution from the Tahers to the Master Meat business, he believed he had been "a bit remiss" in bringing to their attention some of his concerns. Once these were "put on the table", they were resolved. He regarded the agreement of October 10th, 1986 as the Master Meat Packers group emerging into its next stage of development. The agreement was bringing in funds into the group for share capital for the various companies.
Mr Phelan said he expected the Tahers would bring in substantial Middle Eastern business to Master Meats. It was anticipated that, as a result of an increase in Middle Eastern business, the company might realise £5 million (€6.35 million) profit in the year after the agreement.
He also expected he would get the money to pay off a directors' loan account in the Omagh plant. He had a lot of ambitions and vision for the business.
Mr Phelan said he had experienced some problems with Mr Nasser El Taher, son of Zacharia, in relation to the Irish side of the business. Under the agreement, Mr Phelan said he was to attend to the Irish side of the business while the Tahers dealt with the Middle Eastern end. It seemed for a time Mr Nasser El Taher wanted "his name over the door" regarding the business in Ireland and that was not part of the agreement.
Mr Phelan said much of the problem was due to Mr Nasser El Taher's inexperience as a businessman. He had told Mr Zacharia El Taher in a letter in early 1987 he would not tolerate the situation regarding the latter's son. After a meeting later in 1987 with Mr Zacharia El Taher, Mr Phelan said he assumed Mr Nasser El Taher would no longer be involved.
Mr Phelan was continuing his evidence on the 56th day of the hearing of a number of legal actions involving Mr Phelan, Mr Zacharia El Taher, Mr Larry Goodman and others. Mr Phelan alleges there was a conspiracy involving Mr Taher, Mr Goodman and others to force him out of the group in 1987.
Mr Goodman has accepted for the purposes of the proceedings that he owned and controlled the group from 1987, but both he and Mr Taher have denied any wrongdoing.
During yesterday's hearing, Mr Brian O'Moore SC, for Mr Phelan, opened a range of documents, including letters, telexes and minutes, which related to the performance of the plants in 1986 and 1987 and to the relationship between Mr Phelan and the Tahers.
The case continues today before Mr Justice Murphy.
