Mahon Tribunal: Builders Brennan and McGowan have become the latest party to the tribunal to start legal proceedings against the findings of Mr Justice Feargus Flood's second interim report, writes Paul Cullen.
Five parties who were implicated in corruption in the report have now either launched proceedings against the tribunal or indicated their intention to do so. The others are businessman Mr Joseph Murphy jnr and his companies, builders Mr Michael Bailey and Mr Tom Bailey, former minister Mr Ray Burke and jailed official George Redmond.
Lawyers for Mr Tom Brennan and Mr Joe McGowan yesterday appeared at a special costs hearing before Judge Alan Mahon to plead for payment of their clients' €2.664 million legal costs.
Mr Martin Hayden SC, for the two builders, said he was appearing "under protest" given the intention to start proceedings. He argued that the tribunal had provided inadequate detail about the extent of his clients' claimed failure to co-operate. As a result, their legal and constitutional rights were being infringed, and he was forced to make his arguments "in the dark".
"Substantial expenditure" had been incurred by his clients because of the complex nature of the financial inquiries undertaken by the tribunal. Many of these inquiries were highly time-consuming but had nothing to do with the terms of reference of the tribunal.
If the tribunal chose to refuse costs, it should give specific reasons for this. If it did allow costs, "you needn't worry, I will gratefully accept those".
However, Mr Des O'Neill SC, for the tribunal, said Brennan and McGowan had concealed the existence of their offshore accounts from their legal team for up to two years. It wasn't enough for witnesses simply to turn up and give evidence; they had to advance the understanding of the tribunal in order to qualify for costs.
"So that to look at the costs issue as a parson's egg in which there are good parts and bad parts and to say I am entitled to be paid for all the parts where I haven't been found to be bad is to misconstrue the whole concept of why a witness is before a tribunal."
Mr Hayden objected, saying his clients were initially asked about any personal accounts they held offshore, as distinct from accounts held by any of their companies.
According to Mr O'Neill, Brennan and McGowan played a "central role" in the tribunal between 1999 and 2002.
He said Mr Justice Flood's report found that both men had failed to co-operate with the inquiry and had colluded with Mr Burke to provide false evidence.
It also found the two men lied to the tribunal about the circumstances in which offshore payments were made to Mr Burke; colluded by adopting each other's evidence as their own; failed to state the "real purpose" of their offshore financial structures; and gave a false account of their relationship with auctioneer Mr John Finnegan and the circumstances which led to the transfer of £2.66 million sterling to accounts in Jersey.
In addition, the report found that Mr Burke received a "substantial benefit" from the two builders through the acquisition of his house at Briargate, Swords, in 1973.
Mr O'Neill said Mr McGowan told the tribunal about fundraising efforts for Mr Burke which allegedly took place after race meetings in the UK in the 1970s and 1980s. Neither he nor Mr Brennan disclosed the fact they made substantial payments to the politician from offshore accounts, including £50,000 sterling in 1982, £35,000 sterling and £60,000 sterling in 1984 and £15,000 sterling in 1985. These funds had no connection with the claimed fundraising activities at horse meetings, Mr O'Neill said.
The offshore accounts only came to light during an investigation by the tribunal of a Jersey account held by Mr Burke, which was operated through a local firm, Bedell Cristin. It was discovered that this firm was already acting for Brennan and McGowan, and held accounts in their name.
Judge Mahon said he hoped to deliver a ruling in September.
The tribunal resumes today with evidence in the interrupted Jackson Way module.
