Shannon Foynes Port Company agreed to sell property in Foynes at less than its market value to Foynes Aviation and Maritime Museum Limited, the High court heard yesterday.
It is claimed that the agreement, in May 2001, to sell the Aras Ide premises in Foynes to the museum was entered into by the port company without offering the property on the open market. It is also alleged that the sale price of £250,000 (€317,434) was less than the market value.
The original proceedings were taken by a solicitor, Mr Bernard Cunnane, who conducts business from part of the premises. Last November, the pleadings were amended to allow the Attorney General to sue the company "at the relation of" Mr Cunnane.
The President of the High Court, Mr Justice Finnegan, is being asked for a declaration that the title of the premises is vested in the port company, subject to provisions of the Harbours Act, and, in particular, a restriction that the consideration for any sale of land by it shall, insofar as is practicable, not be less than its open market value.
Among other orders being sought is a declaration that the port company is not empowered to sell the premises otherwise than by way of open offer, public tender or auction in the open market.
It is claimed that the port company is required to take into account the Department of Finance's publication, Public Procurement, on the award or conclusion of a public sector contract. Pursuant to the guidelines, the disposal of property should be dealt with by competitive tendering or auction, it is pleaded.
Shannon Foynes Port Co, in its defence, denies the claim and pleads that, if it entered a contract of sale with the museum company, it did so at all times validly and in accordance with its statutory obligations and duties.
Aras Ide, the court heard, comprises a cluster of buildings around a courtyard and has nine tenants, including Mr Cunnane. The tenants also include the museum company, which occupies its part of the premises under a 21-year lease at, it is claimed, a nominal rent. Mr Cunnane has four rooms and had asked for a fifth room. He was interested in bidding on the open market for the premises.
Mr James O'Reilly SC, for the plaintiffs, said Shannon Foynes Port Co was formed in September 2000. Usually, a port company had not more than 12 directors. Everything of which the plaintiffs complained took place during the "implementation" period when the implementation board consisted of five directors.
Mr John Gleeson SC, for the defence, said the sale had closed in September 2002 and the proceeds of sale were being held in a joint account between the port company and the purchaser. The port company had to furnish some form of limited indemnity to the purchaser arising from the proceedings. The museum was aware of the proceedings. The hearing is expected to last several days.