ULSTER BANK was reluctant to take legal proceedings against former Fianna Fáil fundraiser Des Richardson for a debt of almost £16,000 because of his connection with former taoiseach Bertie Ahern, the Mahon tribunal was told yesterday.
Peter McKenna, former manager of Ulster Bank, Mallow, Co Cork also said when he sought repayment of the debt, Mr Richardson told him it would be paid by electronic transfer from his bank in Manchester.
Mr McKenna said Mr Richardson said the account had "no connection whatever with Fianna Fáil". Mr Richardson has maintained that the account was always connected with Fianna Fáil and that he did not tell Mr McKenna that he would send funds from Manchester.
Trent Valley Ltd was set up following an agreement between Cork Fianna Fáil supporter Pat O'Callaghan and Mr Richardson. The two men told the bank they intended to start a lottery to raise funds for the party.
The promotion was to be entitled "Gimme a Break" and the men set up Trent Valley Ltd as the company to operate it. They opened a current account at Ulster Bank in Mallow in April 1993 and Mr Richardson personally guaranteed a £10,000 overdraft.
A lottery licence was purchased, the tribunal was told, lottery cards were printed and advertising was undertaken, but no lottery cards were sold. The bank understood that there had been "difficulties" between Mr O'Callaghan and Mr Richardson. The company ran up a debt of almost £16,000 and the bank became concerned in June 1994 when no attempt was made to repay the overdraft.
Henry Murphy SC, for the tribunal, read into the record a memo written by Mr McKenna on August 3rd, 1994 to the bank's area director. It was written after Mr McKenna had a meeting with Mr Richardson in Mallow, which Mr Richardson has said he does not recall.
The memo said Mr Richardson was "at pains to point out this account had no connection whatsoever with the Fianna Fáil party or indeed its fundraising activities".
"I do not relish the proposition of using the legal process for recovery of our debt given the close relationship which exists between Mr Richardson and Mr Ahern," the memo said. Mr McKenna said that although he does not now recall the meeting, he would stand over everything he had written in the memo.
Mr Richardson finally paid £12,500 to the bank in settlement of his account on November 23rd, 1994. The funds were transferred from Ulster Bank, Baggot Street, Dublin on foot of a cheque from Willdover Ltd, Mr Richardson's business. This was written after Mr Richardson was paid £24,420 from a Fianna Fáil account held by Mr Ahern and former taoiseach Albert Reynolds, for work he carried out for the party.
Mr McKenna conceded that Mr Richardson may have said the account had nothing to do with Fianna Fáil in the sense that Fianna Fáil could not be chased for its debt.
