A LEADING building contractor told the £400,000 Shannon Development fraud trial that he complained to Mr Enda Mulkere, a Clare Fianna Fail councillor, about being asked by him to act as "banker" to the company.
Mr Thomas Madden said he told Mr Mulkere he was a contractor and could not continue "bailing out" Shannon Free Airport Development Company by lending money to it.
This was the third time in a month Mr Mulkere had asked him for cheques made out to cash to pay subcontractors for work they did for SFADCo. Mr Mulkere claimed SFADCo had a cash flow problem but would reimburse Mr Madden through their SFADCo contracts payments.
Mr Madden identified almost 30 cheques, from less than £500 to more than £3,000, he said he had given to Mr Mulkere between November 1991 and April 1992. He paid out £57,000 and was left about £19,000 "out of pocket".
He was giving evidence on the third day of Mr Mulkere's trial at Dublin Circuit Criminal Court on fraud charges.
The charges allege that, with intent to defraud, Mr Mulkere obtained cheques from McCarthy Brothers (Ennis) Ltd, Madden Pipelines Ltd, and Madden Planthire Ltd, and caused or attempted to cause money to be paid to these contractors by SFADCo by false pretences.
Mr Mulkere (46) of Carrownacloughy, Crusheen, Co Clare, has pleaded not guilty to 16 charges of fraud by false pretences while he was a SFADCo executive.
Two charges allege he obtained cheques from McCarthy Bros; the next 10 allege he obtained cheques from Maddens; and the remaining four allege he caused or attempted to cause cheques to be paid by SFADCo to both companies by falsely pretending all the money was lawfully due to them.
Mr Madden told Mr Paul O'Higgins SC, prosecuting, that Mr Mulkere was supervising a major site development contract his company was carrying out for SFADCo in the autumn of 1991.
Mr Mulkere approached him on November 5th, 1991 and said he was under "terrible pressure" because of the SFADCo cash flow problem and asked for three cheques to pay subcontractors.
Mr Madden told him later that he couldn't pay subcontractors without a C2 Revenue Commissioners' tax clearance certificate. Mr Mulkere replied the people he was dealing with wouldn't know what a C2 was. He wanted the cheques made out to cash.
Mr Madden handed over these cheques to Mr Mulkere on November 6th.
Around this time also his company carried out small contracts for SFADCo for about £38,000 and was paid for them. Mr Madden said Mr Mulkere contacted him again on November 21st and said he was under "terrible pressure" again.
Mr Madden told Mr O'Higgins he wrote the amounts listed by the accused on the back of an envelope, had cheques made to cash and delivered and handed them to Mr Mulkere.
Mr Madden said shortly after that Mr Mulkere handed him a list of figures which he said he needed to pay subcontractors. It was then Mr Madden said he first told Mr Mulkere he was not a banker for SFADCo.
"I said SFADCo owes me £300,000 as it stands. I cannot go on acting as a banker for Shannon Development", said Mr Madden, who told the court the £300,000 included payment for contract work being carried out.
The next day Mr Mulkere phoned him and Mr Madden had cheques prepared, payable to cash and dated December 12th 1991. He thought Mr Mulkere collected them. Mr Mulkere telephoned him around December 17th and Mr Madden signed four more cheques for him.
Around this time SFADCo said it was experiencing "temporary cash flow problems" and would pay on contracts by instalment.
Mr Madden said he issued a cheque for £3,420 to Mr Mulkere on December 23rd for another subcontractor. He got a cheque from SFADCo on December 24th 1991 for £302 000, including £17,300 he had advanced to Mr Mulkere for the subcontractors.
Mr Mulkere contacted him again after Christmas 1991 and he gave him six cheques. A further four cheques were given to Mr Mulkere dated April 15th, 1992. "At that stage I said enough is enough.
Days later Mr Mulkere said £20,000 had been added to a certificate. That was in the next SFADCo cheque. Mr Madden said he had then advanced around £57,000 to Mr Mulkere and £37,300 had been reimbursed.
The hearing continues before Judge Kevin Haugh.