Prominent Dublin auctioneer Mr John Finnegan sought to have his identity as one of the beneficial owners of Canio Ltd, the Channel Islands company that paid £75,000 to Mr Ray Burke, kept secret, the Flood tribunal heard yesterday.
This emerged when Mr Simon Howard from the Jersey firm of solicitors, Bedell & Cristin, was being asked about a telex from Dublin accountant Mr Hugh Owens to Mr Lawrence Wheeler in the firm. The telex related to borrowings through Lombard and Ulster bank of £525,000 secured by lands in Sandyford owned by Canio. The bank required full details on Canio, including the names of its shareholders, directors and beneficial owners.
Builders Mr Tom Brennan and Mr Joe McGowan and auctioneer Mr John Finnegan held equal one-third shares in Canio's parent, Ardcarn Ltd, another Channel Islands company, through their respective companies, Kalabraki Ltd, Gasche Investments Ltd and Foxtown Investments Co Ltd.
Mr Finnegan, however, had given instructions that his name should be replaced as beneficial owner by that of Mr Roger Wreford, the Jersey-based lawyer told the inquiry. "I can't explain it," Mr Howard told Mr Patrick Hanratty SC, counsel for the tribunal.
Earlier, counsel had focused on the role of Mr Finnegan in connection with another company, Keno Investments, registered on November 3rd, 1977, and for which Bedell & Cristin had executed a declaration of trust. The beneficial owners were
Messrs Brennan, McGowan and Finnegan "by name directly", Mr Howard confirmed. Keno held the freehold interest in Nos 6 and 7 St Stephen's Green, Dublin.
An elaborate correspondence had been prepared by accountant Mr Hugh Owens over the sale of this property. Mr Finnegan had proposed the sale of the property to his clients, the Gallagher Group, for £750,000.
On February 2nd, 1980, Mr Wheeler of Bedell & Cristin in a "draft letter" to Mr Finnegan said the offer was not acceptable, but that "our clients" would accept an offer of £900,000 for the property. Of this £842,000 was to be paid to Keno to buy out its freehold interest and the remainder was to be apportioned between five companies which held leases on the property.
It emerged Mr Owens had, in effect, prepared the formal correspondence between the parties in advance.
"What was Mr Owens doing in producing this letter in response to Mr Finnegan?" Mr Hanratty asked. Mr Owens orchestrated the transaction and was responsible for steering the negotiations, Mr Howard replied.
Mr Howard is to resume his evidence on Tuesday.