Mr Michael Lowry felt obliged to sell a newly-purchased house in Blackrock, Co Dublin, in 1996 primarily because of a "gross invasion of privacy" arising from the controversy over his financial affairs.
He told the tribunal that his home at Holycross, Co Tipperary, had become a "tourist attraction" during that year after details of payments made to him by Mr Ben Dunne had come into the public domain. He did not want the same thing happening to the Dublin house, which was bought for the former minister by the late Mr Michael Holly, a property developer.
Mr Lowry said that there had been a lot of speculation, particularly in the media, that there was "something untoward" about the arrangement between himself and Mr Holly. Mr Lowry had only a short time previously been forced to resign as a minister.
"At that particular stage I had been receiving saturation publicity, which needless to say was all negative, and my personal situation in terms of my own privacy and that of my family, there was a huge invasion of that. My home at Holycross had become a tourist attraction on a daily basis. I simply did not want the situation to arise again in Blackrock. I decided I was never going to have any privacy there and I decided I was selling it. I just didn't want to know about it any more."
Explaining the background to the purchase, Mr Lowry said Mr Holly was one of about eight auctioneers and builders he had asked to "keep a look-out" for a property for him in Dublin, where he was spending more time at work. He had looked at six different properties "in the company of the individuals who I had asked", but none was suitable.
Then, while Mr Lowry was in Brussels chairing an EU council meeting during Ireland's presidency, he was contacted by Mr Holly by phone and told about the Blackrock house.
"He indicated to me that he was purchasing the property himself, because he felt one way or another it was going to be a good investment, and that when I returned I should look at the property, and if I liked it he would sell it to me at whatever he bought it for", Mr Lowry said.
The house, 43 Carysfort Avenue, was purchased for £200,000 by Mr Holly's solicitor, who paid a 10 per cent deposit. Mr Lowry subsequently arranged a mortgage and paid the legal fees and stamp duty with a personal cheque.
After the controversy erupted over his business dealings he had decided to re-sell the house and felt the honourable thing to do was to offer Mr Holly first option. He then sold the house back to the developer, whom he had known from GAA circles, for £223,000, to cover his expenses.
Mr Lowry said he had decided not to put the house up for auction, as this would have led to further public discourse.
The TD was also asked yesterday about the way in which he calculated charges for his consultancy work. He admitted that his practice of relying on the client to decide the price was "unusual". But he said he had built up a strong relationship with the few companies he had worked with and "there is trust there".
He accepted, however, that it was unwise for someone holding public office to do business in this manner.
"I do realise now, in hindsight, that you have to be ultra-careful, and that something which is totally innocent and innocuous and something that is completely above board can be interpreted in different ways."
