Mr Ray Burke went to Jersey and took a primary role in setting up and opening an account in the name of Caviar Ltd, the Flood tribunal was told yesterday.
The tribunal heard evidence from Mr Simon Howard, of the Jersey solicitors' firm Bedell & Cristin, which acted in the transaction for Mr Burke. The firm also handled the offshore companies controlled by builders Mr Joe McGowan and Mr Tom Brennan and auctioneer Mr John Finnegan.
Mr Howard said that from looking at documents two payments of £60,000 and £15,000 were made to Mr Burke's Caviar Ltd by Jersey-based Canio Ltd, whose beneficial owners were Mr McGowan, Mr Brennan and Mr Finnegan. He said the bank account was opened for Caviar.
"It would appear Mr Burke as instigator took a primary role in setting up and opening the bank account," Mr Howard said.
Mr Patrick Hanratty SC, for the tribunal, asked if Mr Burke had been physically in Jersey. Mr Howard replied: "Yes, it would appear to be the case."
Mr and Mrs Burke were signatories. By letter of June 4th, 1985, this was changed to P.D. Burke as sole signatory.
In November 1984 a credit was made of £60,000, Mr Howard said. On November 21st, 1984, a cheque for £60,000 was made to credit the account of Caviar Ltd at Hill Samuel in Jersey. It was not recorded in the ledger card.
He said he was not in a position to explain why it was not. It did appear on the ledger card for Canio Ltd.
"It would appear the origin of the £60,000 was out of a larger amount of mortgage monies advanced to Canio from Lombard and Ulster," he said.
Mr Hanratty said that in April 1985 there was another transfer of £15,000.
Mr Howard said on April 17th, 1985, a cheque for £15,000 was sent to Hill Samuel to be credited to Caviar. This was not on the ledger card. It was confirmed that £15,000 was in an account held by Bedell & Cristin on behalf of Canio.
He had not seen anything in the files to explain the payment or any instructions about it. There was no evidence that a cash sum was handed over.
Mr Hanratty asked if Bedell & Cristin operated any other company concerning Mr Burke other than Caviar.
Mr Howard said there had been an extensive search but he could not locate any other firm that appeared to have a direct ownership connection with Mr Burke other than Caviar.
Mr Hanratty referred to Jersey-based Beachside Holdings Ltd, which was Mr Brennan's family trust company.
Mr Howard confirmed that Mr Burke was not a named beneficiary of the trust.
Asked what would happen if money was to be given as a political donation, Mr Howard said his advice would be that the matter should be transferred to the trustees for approval.
"There's nothing in the file to indicate that the trustees had any part in the decision. The file indicated that a decision was discussed and possibly taken by the three individuals who were the beneficial owners of the structure," he said.
There was nothing in the letter of wishes of the trust indicating a political donation to Mr Burke.
Asked about the £60,000 and the £15,000, Mr Howard said the decision was probably taken outside the island and then communicated.