Developer made rezoning payments of £508,430

One of the State's leading developers made payments totalling more than £500,000, almost half of it to 69 different politicians…

One of the State's leading developers made payments totalling more than £500,000, almost half of it to 69 different politicians, in connection with attempts to rezone its land at Cherrywood in south Dublin in the 1990s, writes Paul Cullen.

Among the recipients of political contributions from Monarch Properties are three former taoisigh, the leaders of Labour and the Progressive Democrats and more than 60 county councillors, the tribunal heard yesterday.

However, the company denies a claim by lobbyist Frank Dunlop that senior managers knew money would have to be paid to councillors to secure the rezoning of its land for housing, a science and technology park and a district centre. Mr Dunlop admits he bribed two councillors while working on behalf of Monarch.

In an opening statement for the Cherrywood module, Patricia Dillon SC, for the tribunal, said it was not suggested the payments made by Monarch, totalling £508,430 (€645,572), were corrupt. There was no dispute that the payments were made and that Monarch had described them as political payments. But she added: "What is not understood is how they came to be considered as a cost or expense of the Cherrywood development."

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Between 1989, when it bought the 236 acres for almost £10 million, and 1998, Monarch fought a lengthy and ultimately successful battle against huge local opposition to have its land in the Carrickmines Valley rezoned. Ms Dillon outlined a complex planning history that saw the status of the land change from agricultural and low-density residential on septic tanks to higher density housing, a district centre and a science and technology park.

Mr Dunlop claims Monarch executives Richard Lynn and Eddie Sweeney were fully aware that payments would have to be made to politicians. He says Mr Lynn told him lots of money had been spread around but "people were getting greedy" and claims Mr Lynn told him "when you think of the amount of money that is being spent, you would think that these idiots would get their act together".

Mr Sweeney told him payments had already been made and used the phrase "you do whatever you have to do", Mr Dunlop has alleged.

Mr Dunlop originally told the tribunal he got £25,000 from Monarch, but later changed this amount to £65,000 and then £600,000. However, Ms Dillon said the minimum amount he got was about £85,000.

She pointed to further discrepancies in Mr Dunlop's account. Having originally told the tribunal he gave money to councillors Don Lydon and Tom Hand, he now says the only councillors he paid - £2,000 each - were Tony Fox and Colm McGrath. Mr Fox and Mr McGrath deny getting any money from the lobbyist in connection with Monarch.

Mr Dunlop also denies receiving a success fee for the project; however, the tribunal has unearthed an apparent agreement to pay a £50,000 success fee as well as an invoice for this amount issued by Mr Dunlop.