The State company which awarded the lease to operate the €62 million National Aquatic Centre to Dublin Waterworld Ltd on April 30th, 2003, knew before that that DWL wanted to hold the lease on trust for Limerick businessman Pat Mulcair, the High Court was told yesterday.
John Moriarty of DWL said he and a representative of Mr Mulcair had met Donagh Morgan, chief executive officer of Campus Stadium Ireland Development Limited (CSID), the State company which financed the building of the NAC, in early April 2003.
He said that representative, a Mr Caulfield, was well known to CSID. Mr Moriarty said he told Mr Morgan they wanted to hold the lease on trust for Mr Mulcair.
Mr Moriarty was beginning his direct evidence in the hearing before Mr Justice Paul Gilligan of an application by CSID for forfeiture of the lease from DWL. CSID alleges multiple breaches of the terms of the lease. DWL is opposing the application.
CSID has also alleged that unknown to it, DWL had on April 30th, 2003, transferred beneficial ownership of the lease to Mr Mulcair who in turn entered into an arrangement with DWML (Dublin Waterworld Management Ltd), a wholly owned subsidiary of DWL, whereby DWML would manage the NAC.
Mr Moriarty said he became involved about February 2001. He spoke to a number of people about funding. He met CSID for the first time on February 8th, 2001. He also met representatives of Rohcon, the company which built the centre. It was to provide €1.25 million to DWL if it was to become a party to the project.
Mr Moriarty said he had concerns about requests from CSID for an operator's bond and a guarantee relating to the project.
In October 2001, Paddy Teahon of CSID told Mr Moriarty and Brendan Barrett of Rohcon that Mr Teahon had a difficulty with government departments about the wording of bonds and needed their assistance to get out of this.
Mr Moriarty said Mr Teahon proposed that €500,000 referred to in draft agreements was to be put in escrow accounts and that Mr Moriarty was to provide additional security of €250,000.
Mr Teahon later told him he would essentially relax the terms of the lease and vary the terms of the guarantee.
The case continues today.